Cresco Labs Inc (CNSX: CL) (OTCMKTS: CRLBF) (FRA: 6CQ) just revealed that it is now distributing medical cannabis flower in Germany. The move represents the American multi-state operator’s initial entry into the European Union.
Cresco-branded flower will be distributed by Blossom, the company’s manufacturing partner in Portugal. Blossom is processing, testing and packaging the buds on behalf of Cresco at an EU-GMP-certified facility in Lisbon before selling the product to German pharmacies through prescription channels.
Blossom has explained that the launch will focus on validating the brand and product performance on a small scale before potentially expanding throughout the EU.
Germany is one of the fastest growing cannabis markets in Europe. The number of medical patients nationwide has skyrocketed since regulatory changes were implemented in April last year permitting possession of recreational marijuana. There were an estimated 250,000 early last year and there are now approximately 900,000. The nation’s decision to remove cannabis from the Narcotics Act in 2024 has made obtaining medical cannabis much easier for residents.
Import volumes entering Germany have been rising sharply. Around 72 tonnes of product was imported last year and that number could potentially increase two-fold or more by the end of 2025 if trends continue. Canada and Portugal have been among the top suppliers.
According to Blossom, Cresco sources this flower from unnamed “established” Canadian cultivators. It gets shipped directly from Canada to Portugal for convenience and then sold under the Cresco label. Because cannabis is illegal at the federal level in the United States, shipping it internationally is not possible, even in states where it has been legalized.
Nonetheless, Cresco cultivates cannabis flower at multiple facilities throughout eight American states with aggregate square footage exceeding 1 million. The MSO also has a retail network of 71 stores throughout the country.
Haywood Capital Markets analyst Neal Gilmer reaffirmed his Buy rating for Cresco on Nov. 5 and gave the cannabis operator at US$2.00 share target. He had a favourable interpretation of the company’s Q3 results, released last week.
Blossom was nominated for the European Cannabis Company of the Year Award at the Business of Cannabis Awards in London last year.
Read more: Cresco Labs becomes latest operator to bail on California weed sector
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