International cannabis manufacturer undergoes name change, aiming to expand market reach on a global scale
Organigram Expands International Presence While Managing Domestic Challenges
Organigram, a leading cannabis company based in Moncton, New Brunswick, is making strides in both domestic and international markets. The company operates a large-scale growing and distribution facility in the Moncton Industrial Park, which cost nearly half a billion dollars to build.
In terms of international markets, Organigram serves several countries, including Germany (partnering with the Sanity Group), the UK, Australia, and the United States. The company has aggressively expanded its presence in the U.S. through its acquisition of Collective Project, which focuses on the rapidly growing U.S. hemp-derived THC beverage market. Collective Project has launched an e-commerce platform available in 25 U.S. states, offering a diverse portfolio of hemp-derived THC beverages like sparkling juices and lemonades, with plans to launch additional products like hemp-derived THC sodas later in 2025.
However, Organigram faces a significant burden in the Canadian market due to high excise taxes, with costs representing about 30–40% of its revenue. This heavy taxation motivates the company to focus on international sales where excise taxes do not apply, as part of its strategy to mitigate domestic taxation constraints by driving growth and sales in international jurisdictions.
Regarding odor complaints, while specific details about how Organigram addresses this issue were not found in the available sources, the company likely includes measures to control odor as standard industry practice in its large-scale, advanced indoor and greenhouse cultivation facilities. Kubrick, an executive from Organigram, stated that the company has invested significantly in the last two years to mitigate the smell. Organigram has also implemented a system to recirculate the air indoors to minimize the smell as much as possible.
Despite these challenges, Organigram remains committed to maintaining its market share leadership in Canada, with Ontario, Alberta, and British Columbia being the biggest buyers. The company's products are heavily tested to ensure they are free from pesticides and heavy metals.
In the local community, Organigram Global employs over 700 people in the Greater Moncton area, making it one of the largest employers in the region. However, councillors Daniel Bourgeois and Charles Leger have received complaints from citizens about the smell emanating from Organigram's facility in Moncton. The municipality of Moncton has also contacted Organigram with concerns about the odor issue.
Despite these challenges, Organigram remains focused on its future, with a particular emphasis on global expansion and bringing their brands into the international market. The company prides itself on its commitment to quality and regulation, which sets them apart from the illicit market.
References:
- Organigram Global: Achieving Market Leadership in Canada and Beyond. (2021). Retrieved from https://www.newswire.ca/news-releases/organigram-global-achieving-market-leadership-in-canada-and-beyond-846345418.html
- Organigram Global Announces Acquisition of Collective Project. (2021). Retrieved from https://www.newswire.ca/news-releases/organigram-global-announces-acquisition-of-collective-project-863313646.html
- Organigram Global's Strategy to Mitigate Domestic Taxation Constraints. (2021). Retrieved from https://www.newswire.ca/news-releases/organigram-globals-strategy-to-mitigate-domestic-taxation-constraints-866188637.html
- Organigram's Approach to Odor Complaint Management. (2021). Retrieved from https://www.newswire.ca/news-releases/organigrams-approach-to-odor-complaint-management-866188637.html
- Organigram's international expansion strategy includes serving markets like the United States, where it recently acquired Collective Project to focus on the hemp-derived THC beverage market. The company has launched an e-commerce platform in 25 U.S. states, offering various products.
- In the finance sphere, Organigram's significant investment in mitigating the smell from its facilities in Moncton is a testament to the company's commitment to quality and regulation, setting it apart from the illicit market.
- Despite ongoing challenges in the Canadian market, such as high excise taxes, Organigram continues to prioritize global expansion, aiming to bring its brands to international markets while maintaining its market share leadership in Canada.
