With more and more international markets opening for the cannabis sector, Canadian players are looking to expand into those markets and leverage their expertise to rapidly capture the market share. Companies such as Aurora Cannabis (ACB) are establishing their market in the European medical segment along with Canopy Growth (WEED). One of WEED’s biggest markets is Germany.
HEXO’s international plan
While these companies are establishing their presence primarily in the medical space, HEXO has other plans. HEXO recently provided an update on its international expansion plans.
HEXO calls itself a CPG (consumer packaged goods) cannabis experience company. The company’s product lineup includes cosmetics products, oil sprays, dried cannabis, and cannabis-infused non-alcoholic beverages in partnership with Molson Coors Canada.
The company plans to market these products in international markets where legally permissible. In 2020, HEXO plans to enter eight states in the US, and in 2021, the company plans to enter the UK and France.
In its home country, HEXO has a multiyear agreement with the province of Quebec to deliver cannabis worth approximately $1 billion, according to the company. The agreement stretches over five years. Therefore, the revenue from this agreement would alone translate into 200 million Canadian dollars in revenues each year. In comparison, in the most recent four quarters, HEXO reported about 40 million Canadian dollars in revenue.