Medical Cannabis Drives Profit, Says Bedrocan CEO

One of the Oldest Medical Cannabis Companies Returns to Canada After Five-Year Hiatus

Bedrocan International, one of the longest-standing medical cannabis companies globally, is set to re-enter the Canadian market after a five-year absence. Based in Veendam, Netherlands, the family-owned business aims to reinstate its footprint in Canada’s medical cannabis industry, capitalizing on its legacy and expertise.

A Pioneer in Cannabis Cultivation

Founded in 1984 as an agricultural production company, Bedrocan International pivoted to cannabis in 1992, focusing on seed development. By 2002, the company was awarded its first medical marijuana cultivation license by the Dutch government, establishing its position as a leading player in medical cannabis. Over the years, Bedrocan has honed its methods to produce pharmaceutical-grade cannabis under a fixed-price system in the Netherlands.

Now, the company is bringing its expertise back to Canada, with production at its Scarborough, Ontario facility scheduled to begin in early 2025. The site, which previously served as Bedrocan’s Canadian base, can produce up to 3,600 kilograms of cannabis flower annually. However, the company plans to start with a smaller output, focusing on patient-centric and high-quality medical products.

Strategic Exit and Return to Canada

Bedrocan initially exited the Canadian market due to challenges in its joint venture with Canopy Growth Corporation, a leading cannabis company based in Ontario. Despite profitability, Bedrocan faced operational hurdles, including reliance on its intellectual property, genetics, and technology under a licensing agreement.

The joint venture’s dissolution led Bedrocan to leave Canada, a decision CEO Jaap Erkelens described as difficult, given the company’s commitment to serving Canadian patients. However, Bedrocan always intended to return, and with the granting of a new production license by Health Canada on September 27, 2023, that plan is now becoming a reality.

Focus on Medical Cannabis

Unlike many competitors, Bedrocan exclusively targets the medical cannabis market. The company’s strategic decision to avoid recreational cannabis stems from its belief that the recreational market lacks profitability. Bedrocan has consistently emphasized that medical cannabis offers sustainable margins and a viable business model.

The Canadian medical cannabis market, despite increased competition, presents significant opportunities for Bedrocan. With prior experience operating in Canada, the company is confident in its ability to navigate the landscape effectively. Bedrocan’s efficiency and brand recognition further bolster its competitive advantage.

Expansion Beyond Canada

In addition to its Canadian operations, Bedrocan is completing a cultivation facility in Denmark, set to commence production in early 2024. The company anticipates growth in Europe’s medical cannabis programs, which currently vary significantly by country.

While European countries like Germany have faced challenges in implementing adult-use cannabis markets, Bedrocan remains focused on its medical offerings. The company continues to supply cannabis to Germany, leveraging its established operations and expertise.

Innovation in Medical Cannabis Products

Bedrocan is also exploring innovative cannabis products tailored specifically for medical use. While traditional flower products remain popular, the company is prioritizing pharmaceutical-grade alternatives, such as homogenized milled flowers and trichome powders.

These products ensure consistent cannabinoid and terpene distribution, offering patients uniform dosing and improved therapeutic outcomes. Bedrocan’s approach reflects a broader industry trend toward cleaner and more precise cannabis-based treatments.

Challenges in the European Market

While Bedrocan remains optimistic about its prospects in Europe, the company acknowledges the complexities of the region’s cannabis policies. CEO Erkelens has criticized Germany’s attempts to introduce recreational cannabis, describing the efforts as chaotic and unlikely to succeed under existing EU regulations.

Instead, Bedrocan predicts a patchwork of policies across Europe, combining elements of the Dutch toleration model, Spanish social clubs, and traditional medical programs. The company’s strategic focus on medical cannabis positions it to navigate these diverse markets effectively.

A Future Built on Medical Cannabis

As Bedrocan prepares to resume production in Canada, its return underscores the company’s commitment to patient care and its belief in the long-term viability of medical cannabis. By leveraging decades of experience and a clear strategic focus, Bedrocan aims to solidify its position as a leader in the medical cannabis industry both in Canada and globally.

With operations in multiple countries and a continued emphasis on innovation, Bedrocan is poised to shape the future of medical cannabis, offering high-quality, patient-focused solutions that meet the evolving needs of the industry.

Bedrocan’s re-entry into Canada reflects its dedication to the medical cannabis sector and its ambition to expand its global footprint. The company’s strategic choices, honed expertise, and innovative product development promise a bright future for its operations in Canada and beyond.