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Who will be the Molson Coors of cannabis in 10 years?

Published on May 2, 2025 by Pat Bulmer

Photo: Contributed

The cannabis industry may resemble the alcohol business in 10 years time, said the top person at one of Canada’s largest cannabis companies.

In an almost two-hour online session for investors, Beena Goldenberg, CEO of Organigram Global, said she hopes for a “cannabis friendly future in which the industry mirrors today’s alcohol landscape, with broader retail access, greater marketing freedoms and the ability to speak openly with consumers.”

Growth has slowed as the industry matures, “but despite delayed regulatory progress, we remain optimistic,” she said. “Cannabis is no longer fringe. It’s mainstream, culturally rooted, medically accepted and economically vital.

“For a company like ours with scale, experience and capital discipline, we believe the future is bright.”

Organigram was founded in 2013 in Moncton, N.B. Its head office is now in Toronto and it has four additional facilities in Quebec, Ontario and Manitoba.

“Organigram’s Moncton campus is home to our flagship facility and over 800 dedicated team members, spanning 500,000 square feet,” the company said in video presentation. “Right now, we have expansion initiatives in Moncton targeting 13,000 kilograms of additional flower over the next 18 months.”

The cannabis consumer of tomorrow

The future of cannabis will be about more than just getting high, said Borna Zlamalik, senior vice president of research and development. “The future of cannabis is not just about high-octane experiences. The evolving consumer covers a range of ages and needs. The cannabis consumer of tomorrow is health and wellness conscious, purpose driven, seeking functional effects and not just recreational highs.

“And don’t get me wrong, we’re all seeking recreational highs as well. Looking to integrate cannabinoids into daily rituals is a big part of our mission,” he said.

While the future is promising, things have been challenging lately, said Chief Financial Officer Greg Guyott.

Organigram chose not to inflate THC

“The market faced severe price compression, especially in flower, due to oversupply and fragmentation. A lot of LPs lowered their prices to try to maintain market share, including us, and that really reduced our revenue and increased the impact of our excise duties.

“The next thing that we experienced was something very common in the industry. Inflated THC labelling by some of our competitors. Some companies were artificially boosting THC numbers on labels to attract customers. We chose not to follow suit.”

Stock prices and profits are not at levels Organigram wants yet, but the company is making moves to prepare for the future, he said.

“We made significant targeted investments to boost efficiency, enter new categories, and strengthen our long-term competitiveness. We invested in a number of key areas … These improvements were aimed squarely at lowering our per unit costs and increasing operating efficiency,” Guyott said.

Big investment in automation

The company has expanded into new areas, with success particularly in pre-rolls.

“We made a large investment into automated equipment for tube-style pre-rolls, which is now another favourite among our consumers today. Our entry into this segment has been a major success

“Another key lever in improving revenue and margins is the expansion of international sales.

“Organigram Global is positioned to stand the test of time,” he said. “Many cannabis companies in North America probably won’t be here in five to 10 years.

Like everyone in the industry, Organigram is hoping for excise tax and stamp reform when a new federal government takes office.

Contributed

“We want to move to one national stamp instead of different provincial stamps,” said Guyott. That’s something the Trudeau government had promised to look into.

“There appears to be interest in removing this operational complexity, which cost the industry over $100 million.” Guyott said.

Excise taxes are 10% of a product’s wholesale price or $1 per gram — whichever is greater. With prices dropping, the $1 per gram is standard now. The industry is asking for a simple 10% tax.

“The duty is a fixed price per gram, regardless of the price,” said Guyott. “In fiscal 2024, we paid a whopping $87 million in excise duties. That’s 35% of our shipped sales.

“A shift to a 10% ad valorem excise duty on flower could be transformational, not just for us, but for our industry as a whole.”

Exported cannabis is not subject to an excise tax.

Goldenberg said the company is talking to government officials “all the time.”

Collective Project added to portfolio

Last month, Organigram announced the purchase of Collective Project Limited, which produces cannabis and hemp-derived infused sparkling juices, teas and sodas in the U.S.

“Not only does this acquisition represent our first commercial entry into the fast-growing hemp-derived THC beverage market in the U.S., it also fast tracks our entry into the cannabis beverage category in Canada, a category that we believe is on the cusp of growth at home as well,” said Goldenberg in a news release. Collective Project beverages are available in 10 states.

Organigram brass also outlined the benefits of a $345 million investment in the company from British American Tobacco. The money has helped largely with research and expansion.

Do the top executives use their company’s products, one investor asked.

There was a little hesitation, then admissions they consume gummies and beverages — except for the R&D guy: “I’m head of R&D and innovation, so obviously I partake in almost all the categories,” said Zlamalik.