Why have Organigram, Aurora Cannabis, and TGOD all recently bought European hemp producers? Let’s look deeper into the value of hemp.
The hemp plant has three main components. Seeds, leaves/flowers, and stalk. Each of these appeals to a distinct and strong market.
Seeds are used in personal care products and food, including the growing health food market. Leaves and flowers, which produce cannabidiol (CBD), are used in medical products, supplements and beauty products. Stalk produces fiber and hurd, which is used in paper products, building materials, clothing and other textiles.
Focusing just on the nutritional side, hemp seed oil is said to be the richest source in nature of essential fatty acids (EFAs), such as Omega 3 and Omega 6 oils. EFAs play an important role in processes such as detoxification and the formation of brain cells, hormones and neurotransmitters.
Hemp seed is also an important source for essential amino acids, the building blocks of protein. Amino acids are not produced in our bodies, so must come from food. Hemp seeds contain all 9 essential amino acids, plus other vitamins and minerals such as iron, zinc, carotene, vitamin B1, vitamin B2, vitamin B6, vitamin D, vitamin E, calcium, magnesium, potassium, and enzymes.
Hemp’s positive nutritional characteristics have helped fuel strong market growth of hemp-based food products. It is an increasingly sought-after food supplement and meat substitute for the growing health food, vegetarian and vegan markets, due to its high protein content.
Grand View Research (in its Industrial Hemp Market Size, Share & Trends Analysis, 2018) estimates the industrial hemp market to grow 14.0% annually to US$10.6 billion by 2025. The hemp seed market, a sub category, could grow faster.
Several Canadian cannabis companies have recently bought European hemp-producing subsidiaries.
The Green Organic Dutchman bought HemPoland, a manufacturer and marketer of CBD oils in Europe. The deal gives TGOD immediate revenue, a distribution network, hemp oil extraction technology and a top-selling Cannabigold brand.
Organigram invested CAD$ 5 million in Eviana Health Corporation, a European producer of hemp and CBD, giving it the right to buy up to 25% of Eviana’s annual CBD oil.
Aurora Cannabis bought Agropro and Borela, giving it a large supply of organic hemp seed products, the ability to process raw hemp material into other products, and an international distribution channels to sell these.
Aurora Cannabis press release
Source TGOD press release
Source Organigram press release