After building Grow Art AG into a successful CBD business, Lukas Zehnder decided to branch out into the high-end pharmaceutical market. That decision marked the start of an intensive journey to secure a GMP1 licence. Stone wool supplier Grodan not only provided valuable advice during the setup stage, but also continues to support Grow Art as it now gears up to expand in collaboration with major clients throughout Europe.

Grow Art AG was founded in Turbenthal, near the Swiss city of Zurich, in 2017. The initial focus was on the production of CBD oils, which were sold successfully through numerous wholesalers in Switzerland. When the market for medical cannabis opened up, Lukas Zehnder – company founder and CEO – spotted a new opportunity for expansion.

“Informally, cannabis has long been known for its pain-relieving properties and calming effects, and various studies have demonstrated patient demand for cannabis-containing medicines. We are pleased to see these beneficial effects being recognised by governments and the professional healthcare sector, opening up interesting possibilities not only for patients, but also for companies like ours,” says Zehnder.

Co-development with European customers

Now that the market is opening up, pharmaceutical companies are increasingly researching and developing innovative solutions, according to Zehnder. “However, it can take over a decade to develop products that are both efficient and enjoyable for patients,” he continues. “In line with our motto ‘From leaf to relief’, over the years we have developed numerous successful recipes from our own genetics for pastilles, creams, chews and tinctures. Therefore, rather than competing with such companies, we’re keen to partner with them, leveraging our expertise and production capabilities to co-create products that meet patients’ needs faster.”

Grow Art is already working with a number of patient organisations and clinics. It is now further building relationships throughout the supply chain – including pharmaceutical manufacturers, distributors and pharmacy chains – to broaden its reach among patients, not only in Switzerland but also in countries such as Germany and the UK.

Quality focus

“Our commitment to quality has always been a way for us to set ourselves apart. It also gives us a solid foundation to supply to the pharmaceutical industry. But we still needed to make some improvements to meet the industry’s exceptionally high demands,” continues Zehnder.

As part of those improvements, the existing 1,000m² facility was expanded to 1,600m² by adding a new floor. “All our production now takes place on the top floor, where we have between 3,000 and 4,000 plants all year round. The ground floor is for drying, processing and storage – and it’s also where our GMP cleanroom facility is, which is very important for us and our pharmaceutical customers,” he explains.

The expansion took some time because Grow Art is one of the few companies of its kind that is privately owned, with no external investor involvement. “Funding the expansion ourselves meant that we had to take a slightly slower, step-by-step approach. But the upside is that we retain full control over our business strategy,” states Zehnder.

Extremely high standards

Besides the physical expansion, Zehnder set his sights on obtaining a GMP1 licence. “GMP1 shows that you hold yourself to the very highest standards of hygiene and safety, in line with strict protocols and regulations. It’s the best way to demonstrate our commitment to quality and dependability to prospective clients in the medical market,” he comments.

The company provided extensive training to all existing employees and recruited a couple of people from the pharmaceutical industry to benefit from their knowledge and experience. Zehnder acknowledges that it took some effort to get the right people on board, not least because it was still early days for both Grow Art and the European medical cannabis market as a whole. According to him, however, all the extra effort involved in obtaining the GMP1 licence was worth it to position Grow Art at the top end of the market as one of just a handful of companies in Switzerland to have such a high level of certification.

Besides developing a solid operational setup and a competent workforce, Zehnder also went in search of the best materials and the best suppliers. “We tried several different types of growing media – soil, coco and mixtures – but we discovered that stone wool was the best solution for us,” he explains. “With stone wool, the plant gets the nutrition directly; nothing gets lost in the substrate itself, so we know that the plants get exactly what we give them.”

Clean conditions

The CEO emphasises his appreciation of the clean conditions provided by stone wool. “Soil and other organic substrates retain the history of previous cycles. With stone wool, you know that your crop will get off to a clean start, which helps us to ensure the high standard of product uniformity that the pharmaceutical industry demands.”

Additionally, supporting its sustainability goals, this clean start helps the company to minimise the use of chemical pesticides. “Compared to organic media, stone wool reduces the risk of pests and diseases. We have far fewer issues with insects than when using soil or mixed substrates, so most of our pest management is done using beneficials,” he continues.

By supporting the capture, treatment and reuse of drain water in the company’s closed-loop irrigation system, the stone wool substrates also help Grow Art to reduce inputs such as water and fertiliser. As another advantage of the cleanliness of stone wool, Zehnder mentions the labour savings: “Organic substrates produce a lot of dust, not only in the grow rooms but also throughout the whole facility. With stone wool, it’s quicker and easier for us to uphold hygiene standards.”

Best product offering and support

After deciding on stone wool as his preferred substrate type, Zehnder tested the solutions from two suppliers. “Out of those two, I chose Grodan because they had the best offering – not only in terms of the products themselves, but also the support provided by the Grodan team,” he explains.

“When you’re working with stone wool, you have to irrigate very precisely because it doesn’t have a buffer; there’s little room for error in your watering strategy. Ben, the Grodan crop specialist, really helped us, both during the setup phase and afterwards,” continues Zehnder. “Thanks to his close relationships with so many other growers, he has extensive knowledge about the product and real-world challenges, and he has always shared that knowledge and experience with us very generously. Moreover, he is always easy to reach, so we have a very good and healthy exchange of information.”

Full control from start to finish

Grow Art is currently using Grodan products – Hugo blocks – in the cultivation stage only. “We perform almost all activities in-house – from cultivation and harvesting, to trimming, drying and processing – but we outsource the propagation to an external third party. We are now keen to bring this stage in-house again too,” states the CEO. “After all, a decade of work has gone into developing the genetics of our 2,500-plus strains; they are crucial intellectual property for us. Additionally, raising the young plants ourselves will give us full control over quality from start to finish.”

In particular, Zehnder recognises the importance of establishing strong and healthy roots right from the start: “If the roots aren’t good from the outset, the plants won’t deliver optimum performance. That’s why we intend to work with Grodan’s products in the cloning phase too. They are now helping us to find the most efficient solution for this new setup,” he says.

“I really appreciate the fact that the Grodan team go beyond just supplying a product. We’ve built a solid professional partnership together, and I’m looking forward to building on that as Grow Art continues to expand internationally,” he concludes.