Canopy Growth Expands its Presence in Australia

OTTAWA – Canopy Growth Corporation has introduced its Canadian-grown 7ACRES brand to the Australian medical Cannabis market, marking a strategic expansion of its global medical portfolio. The launch, announced on August 5, features two high-THC sativa strains, both offered in 10-gram flower formats.

This expansion strengthens Canopy’s established presence in Australia, where the Therapeutic Goods Administration (TGA) currently approves 22 of its products for distribution, underscoring the company’s growing influence since it acquired the 7ACRES brand in 2021.

However, the buildout comes amid financial headwinds. Canopy’s latest quarterly financials for Q4 2025 (ended March 31, 2025) reported net revenue of $65 million, an 11% decline from $78 million in Q4 2024. The company posted a net loss of $221 million, driven partly by a 4% drop in international markets’ cannabis revenue, which fell to $39.7 million in fiscal 2025 from $41.3 million in fiscal 2024.

The launch aligns with shifting regulatory developments in Australia. The TGA is set to launch a public consultation on August 11, 2025, prompted by concerns over the safety of unapproved medicinal Cannabis products, particularly those with high THC levels. This follows significant growth in Australia’s medical Cannabis market, with sales reaching $402 million in the first half of 2024, a 72% increase from 2022’s full-year total of $234 million, according to the Penington Institute.

Despite financial challenges, Canopy’s strategic decision to expand into Australia signals confidence in the global medical Cannabis market. Yet, with regulatory scrutiny intensifying and domestic Australian producers expressing concerns over Canadian imports, the company faces a complex and challenging set of circumstances. As Canopy navigates these dynamics, its ability to balance quality, compliance, and profitability will be critical to sustaining its international ambitions.