Largest Dutch legal cannabis grower taken over by Canadians

Canadian cannabis company Cronos has acquired Canadelaar, the largest legal cannabis producer in the Netherlands, in a deal worth €57.5 million. It is the first time a foreign investor has taken over a Dutch cannabis grower.

Canadelaar, based in Voorne aan Zee, is the biggest supplier in the Dutch government’s regulated cannabis experiment, which expanded in April and now involves 10 local councils.

Under the scheme, participating “coffeeshops” must source all their cannabis from licensed growers appointed by the government. The trial is intended to test whether the Dutch cannabis market can be taken out of the illegal circuit.

The company supplies cannabis – and more recently hash – to almost all 72 coffeeshops taking part in the experiment. It also produces and packages edible products, such as space cake, and sells pre-rolled joints, growing some 20 tonnes of flower heads a year.

Canadelaar turnover amounted to €24 million in the 12 months to end September, Cronos said.

Cronos chief executive Mike Gorenstein said the takeover reflects the company’s belief in the Netherlands’ “rich cannabis culture”. Dutch coffeeshops, he said, are recognised worldwide for their role in the development of the legal cannabis industry.

“We were intrigued by the fact that the Netherlands has created a responsible and well-functioning adult-use cannabis market,” he said in a statement.

Given the weed experiment only covers a small number of the 562 coffee shops in the Netherlands, this allows for a “potentially significant increase in the addressable market” should it be expanded to other councils or nationwide, Cronos said.

The company, which reported revenues of just under €101 million last year, is currently active mainly in Canada, where recreational and medicinal cannabis have been legal since 2018.

The Canadian market was worth an estimated $3.2 billion in 2024 and is expected to grow to $5.8 billion by 2030. Cronos’ share price has risen 26% over the past six months.