Kekerengu, Marlborough, New Zealand – Puro Cannabis Products, a pioneering organic medical cannabis company based in the scenic Kekerengu region of Marlborough, New Zealand, has announced a significant three-year export agreement valued at 7 million British pounds (approximately NZ$15.8 million) with UK-based pharmaceutical firm IPS Pharma. This landmark deal, formally signed at the New Zealand High Commission in London, represents a pivotal moment for the New Zealand cannabis industry.
World’s Largest Organic Export Agreement
The agreement is being hailed as the world’s largest organic cannabis export deal to date, positioning Puro Cannabis as a key player in the burgeoning global medical cannabis market. It effectively opens critical access points for Puro into both the United Kingdom and broader European medical cannabis markets.
Under the terms of the multi-year contract, IPS Pharma is committed to purchasing £7 million worth of organic medical cannabis products from Puro. The agreement stipulates that supply quantities are set to increase incrementally on an annual basis throughout the three-year term, reflecting anticipated growth in demand within the UK and European territories served by IPS Pharma.
Puro’s Unique Offering
Puro Cannabis Products is distinguished by its commitment to organic cultivation and innovative processing techniques. The company’s offerings are certified organic, adhering to stringent standards that differentiate them in the market. Furthermore, Puro utilizes advanced live drying technology, a method purported to preserve the natural integrity and quality of the cannabis flower.
Currently, Puro’s medical cannabis products are accessible to eligible patients in both New Zealand and Australia. This new export deal with IPS Pharma is substantial, reportedly constituting approximately half of the company’s current production output, underscoring the scale and importance of the UK partnership for Puro’s operations and future growth trajectory.
Strategic Expansion into Europe
Sank Macfarlane, CEO of Puro Cannabis, highlighted the confluence of the company’s unique attributes and recent shifts in regulatory landscapes as instrumental factors enabling Puro to establish a foothold in the expanding European market. The deal capitalises on increasing acceptance and regulatory frameworks for medical cannabis across the continent.
The strategic importance of this market entry is further underscored by industry projections. According to a report by New Zealand Trade and Enterprise (NZTE), the European medical cannabis and CBD industry is projected to reach a market value of $1.29 billion by the year 2028. The United Kingdom market alone is anticipated to contribute significantly to this figure, with projections estimating its value at $569 million within the same timeframe.
Looking Ahead
The partnership with IPS Pharma represents a significant validation of Puro’s organic cultivation methods and product quality on the international stage. It not only secures a substantial export revenue stream for the New Zealand company but also positions it strategically to capitalise on the considerable growth potential identified within the UK and wider European medical cannabis sectors, solidifying New Zealand’s reputation as a producer of high-quality, certified organic cannabis for medicinal purposes.
