On December 27, 2022, Flora Growth announced the acquisition of Franchise Global Health, a European medical cannabis company, in a move that would cement the company’s foothold in the emerging German market and the rest of the European Union.
What is Flora Growth?
Flora Growth is a multinational cannabis company with a presence in the United States, Canada, Mexico, and the UK, among others. Flora Growth is the parent company of a number of cannabis brands, including JustCBD. The company has already established itself as a major player in the American growing cannabis markets and is now expanding to deliver the benefits of medical cannabis to the European Union.
What Does the Acquisition Mean?
Franchise Global Health is a multinational medical cannabis company based out of Germany and is one of the major players in the European medical cannabis market. This company has been working to create a unified and streamlined medical cannabis operation across Europe in addition to collaborate in the process of legalization of recreational cannabis in Germany in the near future.
According to the release put out by Flora Growth, the move would allow to bring its Columbian-grown cannabis directly to the European market, which shows extreme promise for growth in the coming years. With the acquisition of Franchise Global Health, Flora Growth gains access to over 1200 pharmacies across 28 countries.
Flora Growth is clearly positioning itself strategically for the spread of medical cannabis throughout Europe and the eventual legalization of recreational adult-use cannabis. With legalization on the horizon in Germany, Flora Growth is primed to become a top player in the fledgling market as soon as the laws come into effect.
A Globalized Cannabis Market
While the legal status of cannabis remains rocky across many nations, things are changing rapidly. If the legalization of cannabis across many US states has demonstrated anything about the course the rest of the world will take, things will remain uneven and complicated for some time. However, growth in markets where cannabis is legalized will be rapid. America’s multi-state operators (MSOs) are also serving as an example for the first wave of globalized multinational cannabis corporations. At this early stage, companies like Flora Growth are few, but they’ve proven that clever companies can expertly navigate the tricky legal landscape by dealing in the products which are legal in the markets where they operate. They’re proof that a company can be a cannabidiol (CBD) producing company in one state or country, while being in the high tetrahydrocannabinol (THC) containing medical grade cannabis business in another, as the laws in each allow.
It seems that, for the foreseeable future, this will be the next phase of growth within the cannabis market.