Miguel Martin: Welcome that. So Canada, is a hard market, they’re all sort of hard. But this — the reason it’s so sticky is we’ve made really significant investments in this, we’ve made a long time and we think we’re pretty good at it. We have roughly a 25 share, the next closest competitor is at about a 9 share. So this is a piece of business where you have to make a lot of investments, experience matters, particularly with clinicians and physicians and clinics. And you have to continue to invest, call centers, innovation, support mechanisms, science, engagement with key stakeholders and veterans and others. And so it’s just a commitment we’ve made, and I think you have to hit on all cylinders. And I think without being sort of arrogant about it, I think we’re pretty good at it, been that in a long time long time in Canada.
In other markets, some other folks got there first, and it’s not always a first mover status matters. But I think it takes more time for the benefits of our program. So we’re pleased with where we are in Germany, we don’t have a 25 share. And there’s some other good competitors in there. But again, it’s four or five companies. So it’s not like you’re competing against 100 or 200. And so, I think, we’re really pleased with that and where we sit in the German market. And as I mentioned in my prepared comments, we’re one of only three companies that have a manufacturing license in Germany, which will play a significant role, we think, as they roll out legalization and for the rec. Now, in terms of rec, we’re really excited about the German process.
I think three primary reasons. First is they’re actively engaging with the EU. And the expectation is with what they come up with would be applicable in other markets, Poland, Czech Republic, and others. And we’ve heard from those regulators in those markets, but they’re looking to what happens in Germany and the EU. So it might take a little bit longer, but it’ll be a much more substantive and much more broad reaching piece of legislation. We expect to hear some more from the regulator in late spring. And we do expect enhancements to both what we’ve heard on the rec side, but also on the medical side, which not a lot of people are talking about. And the current administration in Germany has a big initiative on reducing bureaucracy. And only about 30% of the patients day in Germany are able to navigate through the medical qualification process, for cannabis products.
And if that was cleared up, you’d see a real big change. Point 1% of the adult population in Germany is in that system, I mentioned Canada, 1%. So any sort of change there will have really outside benefit. So more — we’ll know a lot more in late spring. And as soon as we hear something, we’ll let people know. And we do expect some version of rec sales to happen day, mid 2025, which is when there’s a critical action and there have been some promises made about when this is going to launch. Well that looks like, we’ll see, but these things may take a little bit longer. But with a country like Germany, it may take a bit and be a little bit more long time period, but when it happens, it sticks. And so we’re willing to work with them on that.
Operator: And the next question comes from the line of Frederico Gomes from ATB Capital. Please proceed with your question.
Frederico Gomes: Hi, thank you. Good evening. Thanks for taking my question. My question is just on here in Canada. You mentioned that much of your sales increase coming from higher sales of value brands. Should we read into that, was that more opportunistic? Or is there any shift in strategy there, whereby you plan to rely a little bit more on the value segment to grow volume, and maybe accelerate growth in on the consumer side? Thank you.
