Cannabis-Europe-Companies-Aphria


Updated December 1, 2020


Positioning

Aphria is another of the largest licensed cannabis producers in Canada with operations based in Ontario. When it comes to its increasing its European presence, however, Aphria is using Germany as its primary hub to access the market.

 

In 2019, Aphria Deutschland received licenses for five of the thirteen available cultivation lots in Germany, one of three companies to receive such licenses. Each lot will produce a minimum of 200 kgs of cannabis each year for a total capacity of at least 1000 kgs of cannabis for the German medical market. Aphria's approach to the German market is three-pronged: educating health care providers and creating a telemedicine platform, building its aforementioned in-country cultivation which should be ready to harvest by 2021, and distribution through CC Pharma's 13,000-pharmacy strong network.

 

The acquisition of CC Pharma gives Aphria access to one of Germany's largest pharmaceutical importers and distributors, which primarily distributes non-cannabis products currently but will be integrating cannabis more in the coming months and years. ASG Pharma, an Aphria subsidiary in Malta, is now licensed to import medical cannabis. The company intends to use this Malta facility as a location to process, package, and distribute goods throughout Europe. Finally, Aphria also owns FL-Group, which is authorized to import and distribute cannabis products in Italy. Currently, these products are all produced by Bedrocan and not by Aphria.

Products

Aphria is licensed to grow all three strains permitted for sale in Germany, though its first dried flower shipment to its CC Pharma subsidiary in Germany took place in October 2020.

Footprint

Aphria has three cultivation licenses within the European Union - in Denmark with a Schroll Medical partnership, Germany with Aphria Deutschland, and Italy with FL-Group. In addition, CC Pharma has a cannabis research license, as does Malta-based ASG pharma. Aphria is also approved to distribute its cannabis in Denmark, Germany, Italy, and Malta via their respective subsidiaries.

Source: Brightfield Group 2020

Strengths and Opportunities

Strengths
  • Three separate cultivation licenses within the European Union
  • Subsidiary with experience distributing medical and pharmaceutical products in Europe (CC Pharma)
Opportunities
  • Pursuing distribution in additional European nations
  • Utilize FL-Group connections to import Aphria's medical cannabis into Italy

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