The House of Green, a Guernsey company established in 2019, has entered into a joint venture with Proto Global, the German parent company of Schaeffer Nutraceuticals.
In doing so, The House of Green aims to expand its operations from Guernsey to Europe to focus on the emerging legalisation of adult-use cannabis in the EU and grow its retail business, Bailiwick Botanicals, into the European market.
There are three Bailiwick Botanicals stores in the Channel Islands, which generated £700,000 in revenue in 2022.
The business is targeting revenue in excess of £1m for 2023 by expanding in Guernsey and accelerating growth in the more recently opened outlets in Jersey, Alderney and Sark.
Paul Smith, CEO of The House of Green, said: “We are delighted to be working with Schaeffer. Our recent experience in Guernsey of seed-to-sale operation, and the success of Bailiwick Botanicals, places us in a great position in the European market.”
The joint venture enables The House of Green to share a newly built facility at Kostrzyn in Poland, which is already manufacturing nutraceutical products for Schaeffer Nutraceuticals.
Sales of Schaeffer’s products have been increasing since its launch in 2020 – in 2022 sales approached €1.5m.
Relocation to Poland
The House of Green will relocate its 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 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.
In addition to manufacturing and packaging CBD and other products in Poland, The House of Green will work with Schaeffer to establish a distribution network for cannabis-based products and medicinal cannabis hardware throughout Europe.
It could also introduce a line of nutraceutical products containing cannabinoids using Schaeffer’s existing distribution network.
Gary Tucker, COO of The House of Green, commented: “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 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.”
Pictured: one of three Bailiwick Botanicals shops in the Channel Islands