Organigram, a prominent cannabis producer, recently declared remarkable outcomes for its fourth quarter and the thirteen months ending September 30th, 2023. Their success is largely attributed to developing innovative products that meet the growing consumer demand for easy-to-use options such as edibles and pre-rolls. This innovation-driven approach led to Organigram securing the second spot in the Canadian licensed producer market as of November 30th and receiving the ‘Most Innovative Product’ award from KIND for the second year in a row.
Outstanding Growth and Market Position in Fiscal 2023
In the fiscal year 2023, Organigram experienced substantial growth across key product areas, holding the leading position in milled flowers, gummies, and hash. The company also advanced to the third position in significant markets such as Ontario, Quebec, and the dried flower category. Additionally, between the third and fourth quarters of 2023, their ranking in pre-rolls jumped from tenth to third. During this period, Organigram also introduced 16 new product varieties, increasing their market offerings to 143 SKUs. These new products included ultra-high THC pre-rolls, tube-style pre-rolls, and the first THCV products derived from whole flowers in Canada.
Significant growth drivers for Organigram also included strategic facility enhancements and investments. Post-expansion at the Lac-Supérieur facility, with the first harvest in December 2023, the company allocated $29 million for capital expenditure to improve facilities, aiming to reduce production costs and meet the rising demand for craft cannabis and ready-to-use products in fiscal 2024.
Advancements in International Markets and Exports
Organigram’s international export revenue reached $18.9 million in fiscal 2023, a 25% increase from the previous fiscal year. Sales growth was notable in various product categories, especially gummies, hash, and pre-rolls. On the international front, Organigram made significant strides by establishing first-time supply agreements in the U.K. and Germany, partnering with 4C Labs Ltd. and Sanity Group GmbH to distribute medical cannabis in these countries, reflecting their commitment to expanding their global market presence.
Strategic Partnerships and Investments
In terms of strategic collaborations and investments, Organigram enhanced its focus on vapes by investing in Greentank, gaining access to cutting-edge vaporization technology. They also ventured into the U.S. market through a partnership with Phylos, focusing on high-THCV cultivars and enhancing their cultivation and breeding techniques. This collaboration has already yielded positive results in initial trials and is set to revolutionize some of their cultivation methods.
Future Goals and Financial Objectives
Organigram achieved significant financial savings of $4.3 million in fiscal 2023 and aims for further savings of $10 million in fiscal 2024. CEO Beena Goldenberg anticipates improved profit margins due to these savings and facility upgrades, especially in high-margin areas like craft flowers and vapes.
Supported by a substantial $124.6 million investment from British American Tobacco, Organigram is fast-tracking its international expansion efforts, poised for further global growth. Their commitment to innovative products, strategic investments, and partnerships underscores their aim to establish themselves as a leading figure in the global cannabis industry.