Behind Alliance Communications’ best Cannes ever with over $15 million worth of deals closed at market, chairman Robert Lantos along with other Canadian film executives says the grassroots film scene is picking up international momentum.

‘The important news from Cannes is that independent distributors around the world are now looking to Canada as the key source of product,’ says Lantos of the market which ran parallel to the Cannes International Film Festival May 7-18.

‘Canada has hit a milestone ­ an industry that can presell its product and more than cover its financing costs.’

Not only did the Canadian industry achieve critical acclaim with five Cannes prizes ­ the Grand Prix, the International Critics Prize (fipresci) and the Ecumenical Prize to Atom Egoyan’s The Sweet Hereafter, le Prix International des Cinema d’arts et d’essai to Max Films’ Cosmos and le Prix Pierrots to the anglo/Canadian copro Love and Death on Long Island ­ and generate a buzz with the Directors Fortnight screening of Lynne Stopkewich’s Kissed, but Canadian films are also breaking new ground at the market level.

As the American studios (Miramax, New Line, October Films) take control of more independents there is less non-Hollywood product available for international distributors, explains Lantos, and Canada is becoming the key source filling the gap.

‘Independent distributors around the world are depending more and more on our industry as the source for the kind of movies Hollywood d’esn’t make ­ unique films driven by point of view.’

The Sweet Hereafter came home not only scoring the most awards of any film at the festival, it has now closed worldwide. Most of the key territories were presold and a u.s. deal with New Line came through just before the festival, but at market a big u.k. sale came through with Electric Pictures for theatrical release and the bbc for free tv. Japan, South Africa, Korea, Australia, Turkey, and Poland also closed at Cannes.

‘The minimum guarantees posted by the distributors far exceed the cost of production,’ says Lantos. ‘The film is now very profitable well before its release.’

Alliance Independent Films also sold Neil La Butes’ In The Company of Men to France, Australia, Italy and Scandinavia, bringing total territories closed to 52. Alex Sichel’s All Over Me closed in Russia at Cannes, with 23 total territories sold to date.

David Cronenburg’s ExistenZ, currently in preproduction under the Alliance Pictures International wing, was presold to Hong Kong, Turkey, Thailand, Greece, Cyprus, Slovenia, Estonia, Portugal, Macedonia, Latvia, Macau and Georgia, for a total of 48 territories closed to date.

Presales on Sarah Kernochan’s Hairy Bird were made with Australia, the Middle East, Hong Kong, Iceland and South Africa, with 68 territories now covered.

‘By the time these films come out of Cannes ­ well before release ­ international sales are in excess of the cost of production,’ says Lantos.

This was the case with Telefiction’s $3 million Matusalem ii currently in post. With market presales to Germany’s Atlas Distribution and Latin America, as well as many more Cannes offers still being finalized, Coscient Astral vp international Jean Bureau says costs have been more than recouped. French-language films are difficult to place, he adds, making this achievement even more striking.

Coscient Astral’s Andre Paquette agrees the market for unusual, niche films with high production value is expanding, giving Canada a creative edge. ‘We fit into the niche market of offbeat films with a hook, a twist, and that’s what the international distributors want. They aren’t just looking for big American pictures.’

Under Alliance’s Le Monde umbrella, market sales include Ms. Bear to Belgium, Switzerland, Korea, Serbia and Macedonia; The Boy’s Club to Russia; Dead Silence and Ravages closed in Indonesia, Japan and Taiwan; and Hostile Intent sold to Germany, Indonesia and Taiwan.

The key foreign sales on Kissed came through at Cannes with Lakeshore Entertainment closing the u.k. to Metro Tartan and Kinowlelt Gmbh in Germany. The u.s. belongs to Samuel Goldwyn Company and Malofilm has Canada.

HandMade/Paragon also scored big at market with its bbc/Revolution Films coproduction The James Gang sold to PolyGram for a September release in the u.k., Australia, New Zealand and Spain. Other territories sold via other distribs include Poland, Greece, Argentina, Chile and Israel. The Wrong Guy closed in Australia, New Zealand and Scandinavia. The Assistant sold into Israel.

Numerous Canadian companies did well in Australia, and Norstar Entertainment’s vp international sales Marina Cordon confirms the continent is definitely a growing hotbed as its exhibition sector expands.

The company premiered J’el Wynr’s first feature Pale Saints to packed audiences and closed Australia and Belgium/Holland, with deals in all the large territories pending.

‘The Australians are really attracted to our high-quality, innovative films,’ she says. Korea, Spain and Brazil remain flat markets, adds Cordon, while Germany and Japan are maintaining their strength.

Norstar’s u.k./Canada coproduction Regeneration also had its first screening to critical acclaim from the foreign press and talks are underway with an American distributor as well as a number of international reps.

Cosmos was picked up in Italy, Latin America and Hong Kong, and deals for Asia and continental Europe are currently underway, says Malofilm’s senior manager of international sales Natalie Vinet.

As a small-budget, black-and-white French-language film from six emerging Montreal directors, she is happy with the response to Cosmos, noting French-track films are a harder sell and garner lower prices than English-language product.

Another French-language film produced by Malofilm and Rose Films, Claude Fournier’s Heads Or Tales, had its premiere at Cannes and closed Italy and parts of Latin America.

Coproduction talks kept Canadians busy at the Cannes market, says Telefilm Canada’s international markets officer Lise Corriveau, who notes strikingly stepped-up interest from foreign companies looking to partner with Canadian producers on future projects

South African producers were particularly active in seeking out Canadians, she says, especially with a coproduction treaty between the two countries in the works.

In all, 21 Canadian companies were represented at the Cannes market, says Corriveau, the same number as last year.

On the acquisitions front, the theme at Cannes was caution, says Malofilm’s Noah Segal. ‘No one was buying this year unless they found something they know they can do really good business with. We only bought absolutely knock-out films.’

Many titles which generated some critical interest but weren’t sure hits remained on the table at the end of market, he says, whereas in years past they would have been snapped up.

Prices also reflected this pattern. ‘It’s winners or losers and few break-evens,’ says Segal. ‘You either pay top dollars for sure hits or low prices on films that have been passed on.’

One of the hot properties Segal picked up for Canada was the New Zealand film The Ugly, which he says Malofilm has been tracking since February and is sure to generate some controversy as it’s in the Silence of the Lambs vein. ‘It’s an intelligent, thrilling horror which will work on two levels,’ says Segal. ‘It will be critically acclaimed and also do well on the market level.’ Miramax has already signed on the director, Scott Reynolds, for its next project.

Bidding wars were not an issue at this year’s market, says Segal. Not only do most company’s have long-term output agreements already in place but the big fuellers of the wars ­ Goldwyn, Miramax and New Line ­ have scaled down their acquisitions budgets, filling their pipelines with their own productions.

Stephen Gyllenhaall’s Home Grown, starring Billy Bob Thornton, Ted Danson and Jamie Lee Curtis, was another Malofilm acquisition for Canada. Columbia TriStar picked up all other major territories on this marijuana heist caper, and Segal says Malofilm will release it this fall on the heels of its u.s.-wide opening.

Malofilm also landed Canadian rights to October Films’ Kicked In The Head, a Directors Fortnight comedy starring James Woods that generated excitement at sold-out screening; and Liar with Chris Penn, Tim Roth and Rosanna Arquette from up-and-coming American directors The Pate Brothers who generated a buzz at Sundance.

Consolidation among international distributors is another trend Segal notes. Word on the Croisette was that by next year the disappearing number of distributors will be even more noticeable as consolidation among the larger companies continues and the smaller players are chewed up.

In acquisitions, Coscient Astral picked up French Canada rights on the talk of Directors Fortnight, Ma Vie en Rose, a France/u.k./Belgium coproduction about a young boy who dreams of growing up to be a girl. The company also picked up an Australian film, Heaven’s Burning.