Village Farms International, Inc. (VFF): Marketing Mix Analysis [Dec-2025 Updated]

You're looking to see how Village Farms International, Inc. (VFF) is actually performing after its big pivot, and honestly, the story is a decisive success: they've transformed from a fresh produce player into a high-margin, global cannabis platform, evidenced by their record consolidated net income of $10.8 million in Q3 2025. As your analyst, I can tell you their Product strategy-focusing on EU GMP-certified exports and Canadian brands like Pure Sunfarms-is directly fueling their Price success, pushing the Canadian cannabis gross margin to an impressive 56%. Dig into the full breakdown below to see exactly how their Place and Promotion moves are supporting this powerful growth engine.

Village Farms International, Inc. (VFF) - Marketing Mix: Product

The product element for Village Farms International, Inc. (VFF) as of late 2025 is a diversified portfolio heavily weighted toward high-margin, regulated cannabis products across multiple jurisdictions, alongside a retained interest in its legacy fresh produce operations.

Canadian Branded Cannabis (Pure Sunfarms)

The core Canadian cannabis product line is anchored by the Pure Sunfarms brand, which is recognized as one of Canada's best-selling brands. The focus remains on dried flower and pre-rolls, though the company has strategically shifted its mix toward higher-margin Stock Keeping Units (SKUs). For the third quarter ended September 30, 2025 (Q3 2025), net sales from the Canadian cannabis segment reached $46.6 million (or $64.1 million CAD), marking a 29% year-over-year increase in net sales. The gross margin for this segment achieved a record 56% in Q3 2025, up from 26% in Q3 2024. Net income from Canadian operations in Q3 2025 was $11.7 million, with adjusted EBITDA climbing 306% to $19.3 million. Branded cannabis sales specifically amounted to $26.8 million in Q3 2025, a slight decrease of 1.6% year-over-year, reflecting this strategic mix shift. Village Farms International, Inc. is actively enhancing its production capability to meet demand, with a 40 metric ton project underway expected to increase annual Canadian capacity by approximately 33%, with ramp-up anticipated from Q2 2026 into early 2027.

Key Canadian Cannabis Product Metrics (Q3 2025):

• Canadian Cannabis Segment Net Sales: $46.6 million
• Branded Cannabis Sales: $26.8 million
• Gross Margin: 56%
• Net Income: $11.7 million
• Adjusted EBITDA: $19.3 million

International Medical Cannabis Exports

International medical cannabis exports, primarily bulk and packaged flower from an EU GMP certified facility in Canada, represent a significant growth vector. The surge in this product category is notable, with net revenue from international sales reaching $11.9 million in Q3 2025, representing an increase of 771.9% year-over-year. This follows a 758% surge in international medical export sales (CAD) in Q3 2025 and a 690% increase in Q2 2025. These products are distributed to international markets including Germany, the United Kingdom, Israel, Australia, and New Zealand.

Recreational Cannabis for the Netherlands (Leli Holland)

Village Farms International, Inc. participates in the Netherlands' Controlled Cannabis Supply Chain Experiment through its wholly owned subsidiary, Leli Holland. This operation supplies designated coffee shops and reached full operating capacity at its Drachten facility in Q3 2025. Sales from cannabis in the Netherlands totaled $3.6 million in Q3 2025, contributing an income of $957,000 after costs and expenses, and an adjusted EBITDA of $1.3 million. The company has expanded its product offerings in this market to include hash offerings and pre-rolls. Leli Holland products are now represented in 91% of participating coffeeshops. Construction of the Phase II facility in Groningen is on track to be operational in Q1 2026.

Netherlands Cannabis Operations Data:

US CBD and Hemp-Derived Consumer Products (Balanced Health Botanicals)

The US product offering centers on CBD-based consumer products, including ingestible, edible, and topical applications, managed by Balanced Health Botanicals. In Q3 2025, US cannabis sales were $3.3 million, a decrease of 15.4%, and resulted in a loss of $436,000. For the second quarter ended June 30, 2025 (Q2 2025), net sales were $3.8 million, with a gross margin of 63% and an adjusted EBITDA of $45,000 against a net loss of $0.2 million. The segment faces challenges due to the proliferation of unregulated CBD/THCa products causing price compressions.

Retained Minority Equity Interest in Fresh Produce (Vanguard Food LP)

Village Farms International, Inc. retains a minority equity interest in its privatized fresh produce business, now operating as Vanguard Food LP. This structure resulted from a transformative transaction where Village Farms International received $40 million in cash proceeds and a 37.9% equity ownership interest in Vanguard Food LP. While the main operations are classified as discontinued, continuing produce operations reported sales of $8.6 million in Q2 2025, with net income from continuing produce operations improving to $4.3 million, partly due to a vendor settlement related to the Tomato Brown Rugose Fruit Virus infestation.

Produce Segment Continuing Operations (Q2 2025):

• Continuing Sales: $8.6 million
• Net Income from Continuing Operations: $4.3 million
• Adjusted EBITDA from Continuing Operations: $6.4 million

Village Farms International, Inc. (VFF) - Marketing Mix: Place

Place, or distribution, for Village Farms International, Inc. centers on leveraging its large-scale, vertically-integrated agricultural infrastructure across North America and its EU GMP certification for international medical markets.

The Canadian operations are anchored by Pure Sunfarms, a vertically integrated licensed producer. Pure Sunfarms operates one of the single largest cannabis operations in the world, utilizing 2.2 million square feet of greenhouse production space in Delta, British Columbia. Village Farms International also holds an incremental 2.6 million square feet of advanced greenhouse capacity in Canada for future scaling. Distribution within the province of Québec is supported through the 80% ownership interest in Rose LifeScience Inc., which acts as a commercialization expert and supplier. Canadian cannabis net sales reached $64.1 million (CAD) in the third quarter of 2025.

Direct export of medical cannabis is a significant distribution channel, utilizing the EU GMP certified facility in Canada. International medical export sales saw a dramatic increase, rising 758% year-over-year to CAD 16.3 million in Q3 2025. Net revenue from international sales was $11.9 million in Q3 2025, representing a year-over-year increase of 771.9%. These exports target established markets including Germany, the United Kingdom, Israel, Australia, and New Zealand.

In Europe, the wholly-owned subsidiary Leli Holland holds one of 10 licenses to cultivate and distribute recreational cannabis within the Dutch Closed Supply Chain Experiment. The facility in Drachten has reached its full operating capacity. As of Q3 2025, Leli Holland products were represented in 91% of the participating coffeeshops in the Netherlands. Sales from cannabis in the Netherlands were $3.6 million in Q3 2025.

US distribution for Village Farms International, Inc. is currently focused on CBD and hemp-derived products through its wholly-owned subsidiary, Balanced Health Botanicals, which operates as a leading e-commerce platform. US cannabis sales, which include this segment, were $3.3 million in Q3 2025, marking a 15.4% decrease. For the first quarter of 2025, sales under Balanced Health Botanicals were $3.9 million. The company maintains strategic Texas greenhouse assets, totaling 2.2 million square feet, held in reserve for future entry into the US THC market, pending compliance with federal and state laws. The company also owns 950 acres of unoccupied farmland in Marfa, Texas.

Here is a quick view of the key distribution capacities and penetration metrics as of late 2025:

The distribution strategy relies on leveraging existing large-scale infrastructure, such as the 2.2 million square feet of operational cannabis production in Canada and the 2.2 million square feet of greenhouse assets in Texas.

• Vertically integrated Canadian supply via Pure Sunfarms and Rose LifeScience.
• EU GMP certified facility supports direct medical cannabis exports.
• Leli Holland is one of 10 licensed cultivators in the Netherlands pilot.
• US distribution is primarily e-commerce for CBD through Balanced Health Botanicals.
• Texas assets (2.2 million sq ft) are held for potential US THC market entry.

Village Farms International, Inc. (VFF) - Marketing Mix: Promotion

Promotion for Village Farms International, Inc. (VFF) centers on communicating financial strength, operational execution, and product innovation to investors and consumers. The messaging is heavily grounded in recent, concrete financial achievements from late 2025.

The strategic narrative emphasizes a successful pivot toward higher-value products. This focus is directly quantifiable in the Canadian cannabis segment, which achieved a record gross margin of 56% in Q3 2025. This figure is a key promotional data point used to demonstrate margin discipline and portfolio management effectiveness.

Investor relations promotion highlights record profitability. The company reported a consolidated net income from continuing operations of $10.8 million for Q3 2025. This performance is used to frame Village Farms International, Inc. (VFF) as a leader in profitable scaling within the sector. You can see the key numbers used to support this promotional narrative here:

Product introduction promotion focuses on capturing share in high-growth convenience categories. The company rolled out significant packaging innovation to support this push. For instance, the Super Toast Animal Mintz Slims pre-rolls, launched in September 2025, featured a first-of-its-kind built-in matchbook accessory. This product quickly ranked as the number two new pre-roll by sales and number one by units sold at the Ontario Cannabis Store, according to September 2025 data.

The promotion of new product lines extends internationally. In the Netherlands, Village Farms International, Inc. (VFF) has been actively introducing new SKUs to its Leli Holland operation, which now services 91% of participating coffeeshops. These introductions specifically include:

• Hash offerings
• Pre-rolls

The company expects to launch additional products for coffeeshops during the fourth quarter of 2025.

Leveraging quality certifications is a core component of international export promotion. The EU GMP certification for the Delta, British Columbia facility was renewed, serving as the primary quality and compliance differentiator. This certification permits direct exports of medical cannabis to key international markets, including:

• Germany
• The United Kingdom
• Israel
• Australia
• New Zealand

This export success is reflected in the 758% surge in international medical export sales year-over-year in Q3 2025.

CEO commentary is used to position the entire enterprise. Michael DeGiglio emphasized that Village Farms International, Inc. (VFF) is 'now one of the most profitable cannabis businesses on planet Earth.' Furthermore, he frames the organization as a 'powerful global cannabis expansion platform,' a message reinforced by the company ending Q3 2025 with approximately $88 million in cash and having approved a $10 million share repurchase program in September 2025.

Village Farms International, Inc. (VFF) - Marketing Mix: Price

You're looking at how Village Farms International, Inc. is setting prices for its products, which is all about making sure the price reflects the value while keeping things competitive. This involves a clear focus on margin expansion, especially within the Canadian cannabis segment.

The high-margin focus is evident in the Canadian cannabis operations. For the third quarter of 2025, the gross margin hit 56%. This performance is significantly above the company's targeted range, which has been set between 30% and 40%. This margin achievement is supported by operational efficiencies and higher crop yields, which directly impact the cost side of the pricing equation.

The trend in pricing for bulk product shows strong upward momentum in the first half of 2025. The net average selling price of bulk non-branded flower increased by 33% in the first quarter of 2025 compared to the prior year. This trend continued, with the net average selling price of bulk non-branded flower increasing by 38% in the second quarter of 2025. This demonstrates a successful strategy to command higher prices for wholesale product.

International sales pricing is being actively managed as the mix shifts. For the second quarter of 2025, the net average selling price of international sales decreased by 8%. This adjustment was specifically attributed to a mix shift favoring bulk flower sales over packaged flower formats.

Here's a quick look at how key pricing metrics and stock performance align with this strategy as of late 2025:

The pricing strategy is clearly supported by internal performance improvements, which you can see reflected in the profitability metrics:

• Canadian Cannabis Adjusted EBITDA Margin reached 41% of sales in Q3 2025.
• International medical export sales surged by 758% year-over-year in Q3 2025.
• Retail branded sales saw a planned decrease of 4% in Q3 2025 due to the focus on higher-margin SKUs.
• The stock traded around $3.60 as of early December 2025, reflecting market sentiment on this pivot.

The stock price around $3.60 in early December 2025, with a 52-week range between $0.45 and $4.08, suggests the market is pricing in the success of this margin-focused strategy. Finance: draft 13-week cash view by Friday.