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‘We’re not in business to lose money’: Q&A with Sensi Brands CEO Tony Giorgi

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When massive amounts of capital were being poured into greenhouse construction a few years ago during the heyday of Canada’s cannabis stock mania, the chief executive of Toronto-based Sensi Brands made a decision.

CEO Tony Giorgi put his capital behind sales channels and brands instead of mass-scale greenhouse investments.

Giorgi utilized a “capital-light model” – the opposite of his largest competitors.

It paid off.

After the dust settled, his competitors had lost billions of dollars and shuttered facilities in Canada and overseas, and Sensi says it became one of the only profitable cannabis producers in Canada.

Sensi, privately owned, opened its books to MJBizDaily to confirm last year’s profit but declined to release the specific amount.

“We do not issue products into the marketplace at negative margin. It’s part of our mantra. We’re not in business to lose money,” Giorgi said.

“We focused on innovating highly desirable brands, creating distribution channels and then working with LPs to get their craft products to market.

“We did not come out in 2019 with the intent of being the largest cultivator or extractor in the country.”

Sensi has a small cultivation facility and farm-gate store in St. Thomas, Ontario, and typically focuses on specialized strains.

The business also has a medical channel, called Sensi Medical, with approximately 4,000 active patients.

Positive cash flow notwithstanding, Sensi says the company, some 100 employees, stands out in a number of ways.

Management consumes cannabis daily (after workdays), and workers are invited to consume at monthly teembuilding meetings.

MJBizDaily spoke with Giorgi about his company and the outlook for the industry.

What did competitors, who destroyed millions of grams of cannabis and lost billions of dollars, get wrong in the years after legalization?

Between 2016 and 2019, you had a lot of companies with a flawed business model.

The entire business models were getting great genetics and growing great weed at scale.

Everyone was mass-scale.

They grew all that weed, and they all looked at each other and said, “Hey, do you want to buy it?”

Nobody focused on the distribution paths, and that’s how our business model is different.

What are other key details about your business model? 

It’s a capital-light model focused on building channels. It’s not about focusing on growing commodity weed.

We built an ecosystem to rationalize quality weed versus undesirable weed but also to work with all the craft growers, who aren’t brand experts, in getting their product to market and underpinning our brands with that product.

We have five lines of business. We have a wholesale distribution line of business, where we’ve worked hard to sign supply agreements for spot buy, contract grow and joint ventures.

The wholesale distribution business is valuable to the company and the LPs that are part of the ecosystem, because it’s a distribution path for them.

The core line of business, which is our CPG brands business, is where we focus a lot of our efforts.

We invest a lot of money in the education, triaging and fulfillment of our medical patients through our fourth line of business, which is the medical marketplace (Sensi Medical).

We launched the medical marketplace last year with the intent of curating one of the best medical marketplaces in the country, by going to all the LPs and selecting all of their best medical products to have a one-stop shop.

As a patient of that clinic, why would I want to be committed to one LP when I could have all the best products in one marketplace? That was the vision behind the marketplace.

The farm-gate store is the fifth line of business.

Every line of business is capital-light and cash-flow positive.

You’re either the only standard licensed producer to turn an annual profit or you’re one of a small number. What are you doing differently?

We’re relentless about innovation, optimization and execution.

Those sound like fancy words, but the reality is this is my sixth startup company over the last 30 years.

We have one of the most experienced leadership teams.

We have a very disciplined approach to how we build companies.

We’re cannabis sommeliers by trade, so we’ve invested in learning everything about the plant.

We’re daily, experienced consumers, so we intimately have the academic and experiential knowledge to successfully navigate and launch highly desirable brands.

How do your employees factor into your success?

The one thing that I unequivocally would never lose sight of is the culture of the company and the employees.

We have gone above and beyond to create a culture and environment here that bleeds family and community.

We pay very competitive compensation, offer career growth and training and have a weekly 4/20 meeting, where the company shuts down at the end of the day and there’s a presentation in an educational component.

The staff is permitted to consume their cannabis of choice during that meeting. When the meeting is over, that transcends into a social time, or they wrap up for the day.

We’re trying to create an environment that’s transparent and promotes from within.

Culture and employees are the No. 1 priority for me and the management team.

You were involved in tech during the dot-com boom and bust, in your roles at Q9 Networks and others. What parallel, if any, do you see with cannabis, and how do you see it playing out?

There are a lot of parallels with the legalization of cannabis and the internet boom.

The years 1995 and 2000 in tech are very similar to 2015 to 2019 in cannabis.

By 2000, all the early e-commerce prospectors were a little premature, and therefore we had the big dot-com crash, which is effectively what we had in (cannabis) in 2021.

By 2003 and 2004, the real businesses – not the pump-and-dumps – the people building real cash-flow earning companies started to emerge.

We started seeing the likes of Amazon Web Services, Microsoft Azure, Google and Shopify emerge.

I kind of see the same parallel in cannabis.

I think the next three to five years will be very exciting for the cannabis space. The dust is settling.

The fly-by-nights are on their way out, and now, real companies are emerging that are building solid businesses and gaining market share on business fundamentals and profitable revenue.

I’m very optimistic that the next three to five years are going to be an exciting time in the cannabis space.

Source: https://mjbizdaily.com/sensi-brands-ceo-tony-giorigi-discusses-profits-canadian-cannabis-industry/

Business

EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

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Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).

The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.

Trial Push Despite Multi-Million Euro Settlement

The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.

Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.

A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.

Allegations of VAT Evasion Through Marketplace Sellers

At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.

Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.

Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.

Italian Government Named as Affected Party

In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.

Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.

Multiple Investigations Add to Pressure

The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.

Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.

In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.

Amazon Denies Allegations

Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.

Broader Impact on Europe’s Digital Economy

If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.

With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.

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Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

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