And so, where we can find those spots, we will. And in a lot of cases, as those rec consumers see value in it, we can also bring some of those products to the medical channel as well.
Operator: Thank you. The next question is from John Zamparo of CIBC. Please go ahead.
John Zamparo: Thanks. Good evening. I wonder if you could go across the Atlantic and I wonder what brought about the exit in the Netherlands and can you give us an update on the France market, please?
Miguel Martin: Sure. I’d be happy to. So, the Netherlands, as many of these markets are, you have to make some early bets on what is the regulatory framework going to be. I think one of the most important developments that we’ve seen is consistently international markets are allowing to import EU GMP flower. Now, it’s very challenging in many times because you test in their labs, you have to have a lot of precision. But first and foremost, from a production standpoint, when you compare the production costs and the leverage and efficiencies we have in ramping up Canadian production versus production in that marketplace, it just didn’t make sense from a production standpoint. Secondarily, the evolution of what was going to be this pilot test in that market really has not transpired.
And so, given the incredible strength that we’re seeing in other markets, not only ones we talk a lot about, say, Germany and Poland, but also Australia and the U.K., with limited resources, it made sense to focus there. In terms of France, it’s a very topical question. We’ve just recently learned a little bit more about their pilot. So, we’ve been in it from the beginning. There were nine tenders, so to speak, of different products. Three of them were flower. We had all of those. And recently, what they’ve announced, importantly, is an extension of that system for about five years and we expect that that’s going to dovetail into the medical cannabis regime. They have said no inhalables, as they define as both flower and vape. And so, the other formats will take the lead.
We have pivoted off of flower. We’ll be doing extracts there. Now, listen, as with all regs, things evolve and that doesn’t mean forever no on inhalables. But that’s the current situation. But it’s a big market with a lot of adjacent population. It’s obviously very close to great markets, such as the U.K. and Germany. So, we’ll see how it evolves. But right now, that’s sort of the latest on it, John.
Operator: Thank you. The next question is from Doug Miehm of RBC Capital Markets. Please go ahead.
Doug Miehm: Hey. Good evening. My question has to do with the international side of things as well. One of the things that you mentioned, Miguel, is just that, you anticipated outside of the U.S. that Australia could become the largest medical cannabis market. Could you maybe add a little bit of detail as to why you think that’s going to be the case, especially given the size of the German population relative to Australia?
Miguel Martin: Yeah. It’s a great question. So, first and foremost, syndicated data and the modelling of these markets is in its infancy. And so, I would tell you, the caveat to much of this is based on the data that we have and nothing that we see today in cannabis, possible exception of some aspects of Canada, will replicate the modelling that you would see in, say, Nielsen or IRI or the other data systems that you’re used to. So, as it pertains to Australia, that market is very nascent. There is a data set there called NostraData. And NostraData works with pharmacies that have signed up and it’s a retail takeaway data. And they model the dollar size of that market and market share. They do it both from a total standpoint and an SKU and you can get directionally what that looks like.
