Organigram CEO sees Germany as launchpad for European expansion

Key points:

• Germany is Canadian licensed producer (LP) Organigram’s launchpad for broader European expansion.
• The German market is attractive because medical cannabis demand is rising fast.
• Telemedicine and pharmacy access are lowering barriers for German patients.
• Organigram sees opportunities in France, Spain, Portugal and the Netherlands.

This is part of a regular series of MJBizDaily interviews with major THC industry players. To be considered for an interview, contact editorial@mjbizdaily.com.

With Organigram Global’s acquisition of Germany’s Sanity Group in February, CEO James Yamanka is sharpening the company’s bet on Europe’s rapidly evolving cannabis market.

In his view, Germany is not just a growth opportunity but the strategic entry point to a broader European expansion.

“It’s the largest market in Europe,” he told MJBiz Daily. “Other Canadian LPs (licensed producers) have seen that and invested in Germany. It’s just a market that’s been growing.”

With Germany’s system allowing patients to obtain cannabis prescriptions via telemedicine and have them filled at pharmacies, barriers that have long restricted patient access are falling away.

Where could Organigram expand next in Europe?

From Yamanaka’s perspective, the strength of Organigram’s move lies in both the timing and the partnership.

“Sanity has built a good set of brands that have been able to carry premium pricing in the market,” Yamanaka said. “Companies that can build the right sort of network and have consistency in product and build scientific capabilities will be successful.”

Sanity Group’s revenue jumped from 9 million euros in 2023 ($10.5 million) to about 60 million euros last year and positive EBITDA – even as most industry players are still striving for sustainable profitability.

The acquisition opened the door not just to Germany but also to Poland and the United Kingdom.

“With the capabilities we bought in Sanity, we’ll be looking at other opportunities in Europe – France, Spain, Portugal and the Netherlands,” Yamanaka said. “We’re going to be very disciplined in the say we do it.”

Why Europe – and why now?

Yamanaka is upfront about the reasons behind Organigram’s European focus. As the largest player in Canada’s cannabis market, Organigram is able to self-fund its strategic investment abroad.

As the legal medical market in Germany ballooned to an estimated 2 billion euros today – with projections to more than double in five years – the growth potential outpaces what mature markets can offer companies like Organigram.

But Yamanaka is also quick to caution that Europe brings its own challenges.

“The difference in Germany and Europe is that it’s still risky because it’s new,” he said. “In North America, the industry is well-established and accepted and not at risk of becoming illegal tomorrow.”

Even so, he’s optimistic.

The goal is to build credibility with European regulators, prescribers and patients while setting the stage for continentwide dominance as legalization continues to evolve.

“The game is to get the right regulations and play in a responsible way,” he said.

“Germany has had their boom when lots of people piled in. There’s already some price compression, but the good news is that most of the players have seen the movie before and are being more prudent in terms of how much they’re investing.”

For Organigram, that means leveraging its expertise in large-scale cultivation, quality assurance and compliance – a skill set Yamanaka honed in the highly regulated tobacco industry as global head of strategy at British American Tobacco.

Will Organigram shape Europe’s next cannabis chapter?

Yamanaka’s background in the tobacco industry gives him a pragmatic perspective on market expansion, supply chain integrity and regulatory engagement.

He sees the parallels between the tobacco and cannabis industries as instructive, especially in markets where credibility and compliance are paramount.

Even with Sanity Group’s footprint, Yamanaka sees this as just the beginning. He’s watching opportunities in other European countries and beyond but is adamant about moving forward carefully.

For now, his priority is to ensure a successful integration of Sanity into Organigram and that the company can self-fund its growth, he said.

With fresh leadership and a strategic European acquisition under its belt, Organigram is positioned to shape the next phase of the continent’s cannabis story.

For Yamanaka, Europe isn’t just an emerging market. It’s an opportunity to rewrite the playbook for responsible, science-driven cannabis on a global stage using Sanity as the

“Sanity is a rare deal,” he said. “A lot of deals Organigram has done in the past were for capacity or synergies. This is one of the few ones where synergies are a minor part of the deal. We have the Canadian market, production capabilities and science. They have the brands, distribution and local knowledge.”

Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com