Organigram Wants More Than Revenue From Germany. It Wants the Whole Margin

In an exclusive IgniteIt interview, Organigram’s chief strategy officer discusses Sanity Group’s growth, the economics of integrating cultivation and distribution, and the company’s expansion plans across Europe.

Organigram’s acquisition of Germany’s Sanity Group is giving the Canadian cannabis producer access to more than a fast-growing European market. It is allowing the combined company to capture a larger share of the revenue generated between cultivation and the pharmacy counter.

In an exclusive interview with IgniteIt, Finn Hänsel, Organigram’s chief strategy officer and president, rest of world, said Sanity Group could generate approximately €120 million in revenue in 2026, potentially exceeding that figure.

The projection follows several years of rapid expansion. According to Hänsel, Sanity generated €8 million in revenue in 2023, €19 million in 2024 and €60 million in 2025.

“I think we will go from 60 probably to 120 roughly this year. So maybe even north of that,” Hänsel said.

The figures represent management’s account of Sanity’s historical performance and its expectations for 2026, rather than independently verified financial guidance.

From Cultivation to Pharmacy: Capturing More Margin

Hänsel said the economic rationale for the acquisition extends beyond expanding Organigram’s international sales.

Before the transaction, Organigram supplied cannabis to Sanity, earning a margin on cultivation and wholesale distribution. Sanity subsequently earned its own margin by selling those products into the German pharmacy market.

The acquisition brings both businesses under the same corporate structure.

“Before they acquired us, Organigram only captured the margin between the cultivation and the sale to us, while we captured the margin between the sale to us and the sale to the pharmacy,” Hänsel explained.

“Now if you think about Organigram as a combination of Sanity Group and old Organigram, we capture the whole margin from cultivation to the pharmacy.”

Hänsel said Sanity generated approximately C$40 million in revenue during its most recent quarter at the time of the interview, operating with roughly 100 employees.

“We have good margins between 30 and 40%,” he said.

He did not specify the margin measure in that statement, so the figure should not be treated as an EBITDA, operating or net profit margin.

The acquisition also provides greater control over procurement, inventory planning and product development.

Hänsel described how the combined company can coordinate production decisions months in advance, determining which products Organigram should cultivate based on expected demand in Germany.

“We know exactly the end-to-end cost of the product,” he said.

That visibility matters in a market where prices are coming under pressure, and reliable supply can influence profitability.

Sanity also maintains relationships with more than 10 cultivators outside Organigram. Hänsel said this allows the German business to expand its portfolio beyond the production capacity of its Canadian parent.

Germany Remains the Growth Engine

Hänsel attributed Sanity’s rapid expansion partly to the liberalization of Germany’s medical cannabis rules in 2024.

The removal of cannabis from the country’s narcotics framework reduced administrative requirements for prescriptions and helped expand access through digital healthcare services.

But he also emphasized Sanity’s investments in distribution, supply-chain management, digital platforms and consumer brands.

“I think it would be wrong to say it was all our doing. It was obviously also the market that changed, which drove that growth,” Hänsel said.

Looking ahead, he expects Germany to remain Organigram’s largest source of international growth.

“I think the German market will double again,” Hänsel said, projecting another doubling of patient numbers and market revenue over the next two to three years.

He estimated Germany’s medical cannabis market at approximately €2 billion at the time of the interview. That estimate and the projected growth are his assessments, not independently established market forecasts.

UK Market Share Target, Poland Expansion

Outside Germany, Hänsel identified the United Kingdom and Poland as Organigram’s next major European opportunities.

He expects the UK to become the company’s second-largest market outside Canada within two to three years.

“We actually want to achieve 10 to 15% market share over the next three years,” he said.

The UK market is smaller and growing more slowly than Germany’s, according to Hänsel, but the company sees opportunities to combine the existing relationships and resources of Organigram and Sanity.

Poland presents a different challenge.

Hänsel said Sanity had already begun commercial operations and product registration there, but the approval process can take up to two years.

He expects the company to be positioned for a more substantial presence by late 2027.

Organigram is also evaluating opportunities in Australia, Brazil and smaller European markets. However, Hänsel cautioned against equating large populations with immediate commercial potential, particularly in countries where regulations limit available cannabis products or purchasing power constrains demand.

Brands Become More Important Under Price Pressure

Hänsel also discussed Sanity’s strategy for protecting margins as competition increases.

“The only thing that helps you from price compression is people who believe in your brand,” he said.

Rather than developing dozens of brands, Sanity has concentrated on three: Avai, positioned in the premium segment; Zoic, focused on value; and Viamede, oriented toward patients seeking a more clinical approach.

Hänsel argued that brand differentiation helps companies maintain pricing power in markets where products can otherwise become increasingly interchangeable.

The company does not have comprehensive marketwide sales data to establish its exact ranking, he acknowledged, although he said Sanity’s research indicates strong brand recognition for Avai.

Integration Will Test the Strategy

For Hänsel, the acquisition’s success will ultimately depend on how effectively Organigram combines its manufacturing scale with Sanity’s distribution capabilities and entrepreneurial culture.

He described the differences between the two organizations: Organigram has more than 1,000 employees, while Sanity had fewer than 100 before the acquisition.

The challenge is to preserve the smaller company’s flexibility while building a coordinated global operation.

“We have to find a way to keep the best talent from Sanity Group in the combined company,” Hänsel said.

He also wants Organigram to move beyond viewing its business primarily through a Canadian perspective.

The objective, he explained, is an integrated procurement and distribution system capable of coordinating products from cultivation through final sale across multiple countries.

For investors, that creates a measurable test of the acquisition: whether faster international revenue growth translates into sustainable margins, more efficient supply chains and improved profitability across the combined company.

The economics of international expansion, capital allocation and profitability will also be central to conversations at IgniteIt’s Capital & Policy Summit in Washington, D.C., on November 18, 2026. The event will bring cannabis executives, investors, and policymakers together to examine the financial and regulatory decisions shaping the industry’s next phase.