Puro is one of New Zealand's first commercial medicinal cannabis farms, based in Kēkerengū and Waihopai Valley in Marlborough. The company has signed a significant distribution agreement to supply its medicinal cannabis in Australia with Heyday Medical. Photo / Supplied
Puro is one of New Zealand's first commercial medicinal cannabis farms, based in Kēkerengū and Waihopai Valley in Marlborough. The company has signed a significant distribution agreement to supply its medicinal cannabis in Australia with Heyday Medical. Photo / Supplied
New Zealand’s largest medicinal cannabis grower has secured an Australian distribution agreement to supply the therapeutic across the ditch, but unfortunately, Kiwis can’t get access to it.
Puro grows medicinal cannabis on its two premium cultivation sites in Kēkerengū and Waihopai Valley in Marlborough.
Its new Kākāriki Koha (or “GreenGift”) is the first New Zealand-certified organic medicinal cannabis to be commercially available globally, thanks to a new deal with Australian company Heyday Medical.
The name Kākāriki Koha was conferred to Puro by Te Rūnanga o Kaikōura.
Puro chief executive Sank Macfarlane couldn’t reveal details on the size of the distribution agreement, but emphasised how Puro’s medicinal cannabis would be game-changing in terms of its quality.
“The Australian market is what I would call awash with cannabis from Canada,” Macfarlane said.
“The quality of the product that we’ve got going there is so much better than the product that’s currently there. Over time, we’re expecting this to be a significant deal as consumers start to use it and understand that it’s far better than any of the competition.”
The distribution agreement was worked on for several years, according to Macfarlane, who said the industry was one firmly based on trust and aligning business strategies.
Heyday will offer a full range of Puro’s organic THC, CBD and CBG products to customers.
Heyday, founded in 2020, has strong brand recognition and a large customer base that Puro is keen to leverage.
Puro co-founder Sank Macfarlane believes the medicinal cannabis industry has the potential to match that of New Zealand's wines, with international exports and world-renowned status achievable if we get the regulatory settings right. Photo / Supplied
Macfarlane said Kākāriki Koha was possible thanks to the previous Government’s $32 million grant, which helped fund Puro’s breeding research programme alongside the Ministry for Primary Industries.
Taxpayers contributed $13m to the grant, with the remaining $19m coming from private investors.
The strain, or cultivar, is unique to Puro and is something Macfarlane believes separates the business from its competitors, noting its high terpene and THC levels.
“We’re a premium, boutique grower in the scheme of things,” he said.
“We put a lot of love, care and attention into growing the right cultivars in the right environment, which you can only do on a sort of craft or boutique scale.”
He explained Puro’s cultivation sites in the South Island have the ideal climate for growing cannabis, comparing the operation to winegrowers similarly taking advantage of the area.
Macfarlane believes Puro’s partnership with Heyday Medical is the next phase of its transformation.
“We’re currently on track for a fivefold increase in revenue compared to last year, with growth expected to double again over the next 24-36 months.”
Regulatory barrier
While the news will be good for those in need in Australia, Kiwis who need access to the therapeutic won’t be able to get it.
According to the Ministry of Health, all medical cannabis flowers need to be packaged in a licensed GMP facility.
Unfortunately for growers here, there isn’t a licensed GMP facility in the country that can meet the need, and means Puro has to send its products overseas.
Macfarlane wants this to change.
“It’s not economical for us to go through the time-consuming rigmarole of applying for an import licence to bring our own product back to New Zealand.”
“We think it is a game-changing product and we’d love for New Zealand patients to be able to benefit from it.”
Puro says its cultivation sites in the South Island have the ideal climate for growing cannabis. Photo / Supplied
Regulatory changes that came into force in July dramatically reduced the compliance costs of exporting medicinal cannabis.
Macfarlane hopes the agreement between Puro and Heyday Medical will help show the industry’s potential and could open it up for consumers here.
“Since the medicinal cannabis scheme got introduced, we’ve just been very slow to make change within the industry.”
“I guess it’s frustrating that when you’re at the coalface and you can see what needs to change, and it potentially isn’t difficult to change.”
He suggested that other countries may have moved too early in opening up their medicinal cannabis industries, but that there were learnings New Zealand could take that wouldn’t mean we’d need to be overly cautious.
Tom Raynel is a multimedia business journalist for the Herald covering small business and retail.
