The House of Green, a Guernsey company established in 2019, is pleased to announce that it has entered into a joint venture with Proto Global GmbH, the German parent company of Schaeffer Nutraceuticals.
The House of Green is expanding its operations from Guernsey to Europe to focus on the emerging legalisation of adult-use cannabis in the EU, with Germany, Malta, Netherlands and Czech Republic leading the way, and to grow its retail business, Bailiwick Botanicals, into the European market.
There are currently three Bailiwick Botanicals stores in the Channel Islands, which generated £700,000 in revenue in 2022, and they are targeting revenue in excess of £1 million for 2023 by further expanding the offering in Guernsey and accelerating the growth potential of the more recent store in Jersey as well as outlets in Alderney and Sark.
Paul Smith, CEO of The House of Green, said: “We are delighted to be working with Schaeffer, part of the Proto Global group, who we have known for some time. This joint venture is a great opportunity for us to press forward with our strategic aim of becoming a leading manufacturer and distributor of cannabis and cannabis related products in Europe. Our recent experience in Guernsey of seed-to-sale operation, and the increasing success of our retail stores, Bailiwick Botanicals, places us in a great position to bring all our knowledge to bear in the European market with a growing European consumer and investor base.”
The joint venture with Proto Global enables The House of Green to share a newly built, GMP certified facility at Kostrzyn in Poland, which is already manufacturing nutraceutical products for Schaeffer Nutraceuticals. Sales of Schaeffer’s range of products have been increasing since their launch in 2020, and 2022 saw it achieve sales approaching €1.5 million.
The House of Green will relocate its fully operational cannabis extraction laboratory from Guernsey to Poland in readiness for the extraction of cannabinoids for the manufacture of products in line with regulations in various EU countries. The site in Poland also has planning permission for a second building, which will built to EU-GMP pharmaceutical specifications and more than double the capacity of the existing operation to 3,000 m2.
“Schaeffer Nutraceuticals is very excited to be working with The House of Green, and we see significant benefits to both companies from the formation of this joint venture. It is our intention to work together to grow the range of products available to our combined customer base throughout Europe.” said Ziya Gaziyev, CEO of Proto Global.
In addition to manufacturing and packaging CBD and other products in Poland, The House of Green will work together with Schaeffer to establish a distribution network for cannabis-based products and medicinal cannabis hardware throughout Europe and potentially introduce a line of nutraceutical products containing cannabinoids and leverage Schaeffer’s existing distribution network.
Gary Tucker, COO of The House of Green commented: “This is a very exciting time as the legalisation of cannabis is looking increasingly likely in Europe. For The House of Green, this joint venture represents a significant step forward as we build out our business model for the European market and operate from a GMP certified facility. As well as expanding our successful retail business direct to consumer and via distribution channels to other retailers, our patented extraction processes will enable us to manufacture own brand and white label cannabis-based products in the heart of Europe.”
