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Author: Anthony Johnson

German Pharmacists Support Medical Cannabis, See Market Growth

Written by Anthony Johnson on . Posted in Berlin, Business, Medical, Vancouver.

The German cannabis patient community has grown by leaps and bounds since the program was approved a few years ago and the International Cannabis Business Conference is so pleased to have witness the growth firsthand, holding our first annual conference in Berlin just after medical legislation was approved. Despite a lot of bureaucratic red tape (that has loosened over time), there are now about 50,000 cannabis patients and that number could easily increase to hundreds of thousands in the coming years as cannabis goes more mainstream and prices drop.

The robust growth of Germany’s medical cannabis program isn’t only evident by the increase in the number of patients, but in clear signs that the future growth of the program is very bright. First, the increase in exports has surged dramatically as the European Union powerhouse has imported nearly as much cannabis from Canada and the Netherlands in the first six months of 2019 as it did in all of 2018. Also, very tellingly, licensed German pharmacists, those actually dispensing the medicine, not only support medicinal cannabis, but three-fourths see the market growing, as reported by Marijuana Business Daily:

According to the paid report, the majority of pharmacists in Germany generally favor medical cannabis – as long as they’re the ones responsible for dispensing it.

Three-quarters believe the German medical cannabis market will continue to grow, and among that group, 15% said growth will be strong.

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About half the pharmacists believe they are well informed about medical cannabis, but fewer than 5% responded they are “very well” informed. The rest said they were poorly or very poorly informed.

With cultivation companies in Germany now getting licensed, with homegrown cannabis expected to be on pharmacy shelves in 2020, prices will come down, variety will increase, and local lobbying efforts will strengthen. With the industry growing, as German pharmacists and virtually everyone expects, advocates will become more influential with policy makers, and the bureaucratic hurdles slowing the medical program will start to be removed. Eventually, the lobbying effort and public support will garner enough votes to legalize cannabis for all adults. When they do, will German pharmacists still be the sole dispensers, or will the market open up to more retail outlets? Only time will tell.

The International Cannabis Business Conference is THE industry event to learn the latest and to network with top investors and entrepreneurs. Next up: Vancouver, British Columbia, Canada, this September 15-16. Purchase discounted early bird tickets by August 21st to save.  

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Canadian Cannabis Company to Open Retail Herb House in Jamaica

Written by Anthony Johnson on . Posted in Business, Cultural, Vancouver.

The international cannabis industry is getting more interconnected than ever before and Canadians are still leading the way while other nation’s policies are still trying to catch up. Canada’s progressive national policies, while still needing some fine-tuning, have allowed its cannabis companies to make moves around the globe that others simply cannot make.

Canadian companies have become major exporters to Europe and are actively seeking expansion in new, burgeoning markets around the globe. One major deal has just been announced in Jamaica as Aphria has just announced the licensure of the Sensi Medical Cannabis House through its subsidiary Marigold Projects, that will, very fittingly, be located in Peter Tosh Square, overlooking the Peter Tosh Museum in New Kingston. Excitingly, the retail herb house, licensed by the Jamaican Cannabis Licensing Authority will also have an on-site consumption lounge, in addition to selling cannabis strains, infused products, and accessories.

“The approval of Marigold’s first Herb House signals an exciting time for Aphria. We believe that there is tremendous opportunity in Jamaica from a domestic and international perspective and we look forward to bringing Sensi products to the market,” stated Aphria’s Irwin D. Simon in a company press release. ”Receiving this licence is testament to our team’s hard work and dedication in growing our Caribbean and LATAM business as we provide high-quality cannabis products in regions. Aphria will continue to execute on our business plan to create long-term value, sales growth, and profitably in Canada and internationally.”

Aphria and Marigold plan to have a grand opening for the Sensi Medical Cannabis House in August and is seeking to open locations in Portmore, Ocho Rios, Montego Bay, and Negril. What an exciting time for the Jamaican and international cannabis community that travel to beautiful nation. Jamaican reggae legend Peter Tosh recorded his anthem “Legalize It” back in 1975. It’s good to see that the world is finally listening.

The International Cannabis Business Conference is the best industry event to learn the latest and to network with top investors and entrepreneurs. Next up: Vancouver, Canada, this September 15-16, featuring top experts in the field, PLUS a performance on a luxury yacht by Cypress Hill’s DJ Muggs at the after party. Don’t delay, purchase early bird tickets before prices go up on August 21st. 

UK MPs Expect to Legalize Cannabis Within the Next 5 to 15 Years

Written by Anthony Johnson on . Posted in Business, Politics, Vancouver.

Three United Kingdom Members of Parliament, representing the Conservative, Labour, and Liberal Democrat parties all recently traveled to Canada on a fact-finding trip organized by the harm reduction group Volte Face and all came back proclaiming that the UK would legalize cannabis in the coming years. The three MPs had different opinions on how soon their nation would end prohibition, somewhat along stereotypical party lines. Labour’s David Lammy and the Liberal Democrats’ Norman Lamb predicting that legalization could be implemented within the next five years while Conservative Jonathan Djanogly stated that it would take 10 to 15 years to follow Canada’s lead. Lammy, the MP for Tottenham, has now gone against the Labour Party’s official stance on cannabis, writing in The Guardian about why Britain should legalize and improve upon Canada’s model:

On a trip to Toronto, filmed by the BBC for a short documentary being shown on Monday, I was able to see the world’s largest regulated market up close. Production occurs in sterile grow-houses filled to the ceiling with the green plants. Licensed stores, protected by security guards, sell a wide range of cannabis strains in air-conditioned surroundings that appear somewhere between a vape shop and a pharmacy. The THC and CBD levels are marked on labels like the alcohol content on a bottle of beer. Touchscreens allow users to choose between oils, leaf, pre-rolls and pills as easily as picking between a Quarter Pounder or chicken nuggets in McDonald’s.

The potential benefits of legal regulation go beyond hurting the bank balances of criminal gangs and reducing the disproportionate criminalisation of certain groups. In the UK, children find it easier to access cannabis than alcohol. Taking cannabis out of the hands of street dealers and putting it behind the counter in shops with security guards and ID requirements would help protect those under 18. For adult users, there would be more mellow alternatives to the super-strength skunk linked most closely to psychosis, which currently makes up around 94% of the black market. Regulation means we can control and lower the average THC levels significantly, reducing mental health concerns.

The biggest challenge is to make the regulated market attractive enough to beat the black market, but not to glamorise it in a way that will increase consumption. If implemented correctly, legal regulation should reduce social and health harms to a minimum. Bill Blair, the former Toronto police chief turned Liberal minister in Canada, has had the job of trying to find this Goldilocks point in Canada. At present, he has not achieved it. The price of legal cannabis is around $10 (£6) a gram, compared to $6.37 in the illicit market. There are too few dispensaries for many users to have access. As a result, the majority of weed in Canada is still sold illegally.

Whether it takes the UK five years to end cannabis prohibition, or up to fifteen years, a majority of the people and politicians know that legalization is coming. It’ll still take a lot of hard work from advocates, but there is simply no way that British citizens, businesses, and policy makers will stand around and watch other nations across the globe bring more freedom, jobs, and revenue to their shores, without eventually deciding that prohibition’s time to end has come.

The International Cannabis Business Conference is THE industry event to learn the latest and to network with top investors, entrepreneurs, and advocates. Next up: Vancouver, British Columbia, Canada, this September 15-16. Purchase discounted early bird tickets by August 21st to save. 

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International Cannabis Business Conference Vancouver Features a Yacht After Party Headlined by DJ Muggs of Cypress Hill!

Written by Anthony Johnson on . Posted in Business, Cultural, Entertainment, Politics, Social, Vancouver.

The International Cannabis Business Conference returns to beautiful Vancouver, British Columbia, Canada, this September 15-16, with our trademark blend of business, politics, and culture. If you want the latest information on rules and regulations in Canada and around the world and to network with top investors, entrepreneurs, and advocates, the International Cannabis Business Conference is THE industry event for you. But the International Cannabis Business Conference doesn’t just educate, we also ensure that you are engaged and entertained, and our networking events, including our after parties, have become legendary around the world. This year in Vancouver, the after party will be taken to another level as Cypress Hills’ DJ Muggs will be performing on a yacht!

A VIP reception on the 15th will kick off the networking at International Cannabis Business Conference in Vancouver, as speakers, sponsors, and attendees gather at the Westin Bayshore Hotel. On the 16th, attendees will hear from industry experts on a host of important topics including: local Vancouver and B.C. regulations; regulations regarding edibles, topicals, concentrates, and extracts; mergers and acquisitions; domestic investments; going public; succeeding as a craft cannabis company; exporting internationally; extraction science and technology; and how to best develop strategic partnerships.

Following the conference curriculum, the exclusive after party, sponsored by Bhang and Indiva, will take place on a Pacific Yachts 105-foot, three-level luxury vessel. The yacht will be docked at the Westin Bayshore Hotel for an amazing party experience that will also be extremely convenient.

DJ Muggs, along with all of Cypress Hill, has been a long-time supporter of cannabis legalization, making music for the community, way before it was easy and popular. The group even lit up on Saturday Night Live, earning a lifetime ban from NBC! Today, Muggs and Cypress Hill are members of the cannabis industry, with an understanding of the ups and downs facing the community.

Join us this September 15-16 for an industry event like no other. Get your discounted early bird tickets by August 21st to secure your spot and to save $$$.

Venture Capitalists Invest a Record Breaking Amount in the Cannabis Industry!

Written by Anthony Johnson on . Posted in Business, Vancouver.

It makes sense that investors, including venture capitalists, are investing more and more in the cannabis industry each and every year. More states and nations are moving towards legalizing medical and adult-use cannabis and it is easy to see that a lot of progress is being made in the United States and around the world. The U.S. Congress has already held a historic committee hearing on the benefits of legalization, the FDA is contemplating rules for CBD, and more cannabis-related hearings are coming soon. However, I don’t think that anyone could have predicted that more money would be invested from venture capitalists already in 2019 than what was invested all of last year. As Pitch Book reports, $1.6 billion has already poured in from VCs compared to $1.2 billion total in 2018:

Even though the use and possession of cannabis is illegal under federal law, 33 states and the District of Columbia have passed laws legalizing marijuana in some form. In June, Illinois became the 11th state in the US to legalize marijuana for recreational use. With every voting cycle, the stigma around marijuana seems to shed a bit more and VC interest in cannabis spikes at a phenomenal rate. And this year, which still has over five months to go, has already collected significantly more VC funding in the space than any year ever, according to PitchBook data:

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So far this year, Florida-based Phyto Partners boasts the largest portfolio with a total of nine deals. The early-stage VC was founded in 2015 and focuses on investments in the cannabis industry. Notable deals in 2019 include Green Flower, which operates a cannabis education platform and Wurk, the developer of a payroll and HR platform for marijuana businesses. The firm also holds a stake in Eaze, the provider of an on-demand marijuana delivery service; it was valued at $315 million in December. Gotham Green Partners, which is tied with  Arcadian Fund as the second most active investor in cannabis startups, participated in a $125 million round for Flow Kana in February. Founded in 2014, the business partners with small family farms to cultivate sun-grown cannabis flowers.

The cannabis market in the US is expected to grow at 24.1% over the next six years, again per Grand View Research. And while several cannabis companies such as Hexo (NYSE: HEXO) and CannTrust (NYSE: CTST) have been tumbling on the stock market in recent months, the possibility of innovative products and increased market size seem to make a compelling argument for VCs to cut hefty checks toward pot businesses. To put it bluntly: 2019 has been lit so far.

While there will certainly be ups and downs for the cannabis industry over the coming years, the future looks bright on a variety of political and business fronts. With Donald Trump pledging support for the STATES Act and all major Democratic presidential challengers supporting a form of legalization, the U.S. could legalize within the next few years, creating a domino effect across the world. There’s a solid saying to “follow the money” and if you follow the money of venture capitalists, smart money is on cannabis.

The International Cannabis Business Conference is the preeminent industry event to learn the latest about the cannabis industry and to network with top investors and entrepreneurs. Next up: Vancouver, British Columbia, Canada, this September 15-16. Purchase discounted early bird tickets by August 21st to save.

Thailand Takes Early Lead in the Asian Cannabis Market

Written by Anthony Johnson on . Posted in Business, Vancouver.

Positive cannabis law reforms have been taking hold all across the world, while Asia with many of its nations still maintaining draconian cannabis laws, has lagged behind North America, Europe, Africa, and South America. But the times may be a-changin’ and Thailand is leading the way. If Thailand is going to continue its lead and maximize its current competitive agenda, the nation will need to adapt, starting with moving beyond just medical cannabis and embrace legalization for all adults. There’s good reason to be optimistic for Thailand to lead a projected $8.5 billion regional market (by 2024) with key political figures are lobbying for expanding the country’s medical program and ending prohibition for all adults, as Bloomberg reports:

The country last year legalized medical marijuana with the approval of Prime Minister Prayuth Chan-Ocha, who then led Thailand’s junta and now heads the civilian government following a disputed general election in March. A key member of his coalition is pushing for full legalization of Thailand’s marijuana market, projected to grow to $661 million within five years, according to cannabis industry researcher Prohibition Partners.

Anutin Charnvirakul, the millionaire leader of political party Bhum Jai Thai, helped Prayuth form a ruling coalition and is expected to use that platform to try to deliver on his campaign promise of legalizing marijuana. The prospects of such a move increased on July 10 when Anutin was named deputy prime minister and public health minister in the newly formed cabinet. He’s seeking to remove restrictions that have made it difficult for even those approved for medical marijuana to easily access cannabis, he said in a June 21 party statement. Anutin’s two key positions make it easier for him to submit regulatory changes to legalize the crop. Thailand’s tough anti-trafficking laws aren’t expected to change even if recreational weed becomes legal.

It’s not the only nation rethinking cannabis. Malaysia and Laos are considering legalizing medical use of the crop, and the Philippines’ lower legislature has passed a medical cannabis measure. “For Thailand to become the Asian leader in the cannabis space, it would most likely require that neither China nor Japan legalize cannabis,” says Alexandra Curley, Prohibition Partners’ head of insights.

Thailand has already branded itself rather well in the old-school, underground cannabis community as Thai Stick has a legend of its own. In addition to becoming a major exporter, Thailand should embrace cannabis tourism to bring more freedom, jobs, and revenue to the nation. I’m a extremely proud of Thailand’s progression on cannabis (my mother is from there) and I hope that this trend continues and the country will embrace liberty for the betterment of their hardworking people that have been subject to a lot of political and cultural turmoil.

If you want to stay up-to-date on the latest industry news and to network with top investors and entrepreneurs, the International Cannabis Business Conference is the event for you. Next up: Vancouver, British Columbia, Canada, this September 15-16. Discounted, early bird ticket sales end August 21st. 

Canada Needs to Adapt as US, Especially California, Cannabis Industry Grows

Written by Anthony Johnson on . Posted in Business, Politics, San Francisco, Vancouver.

Canadian cannabis companies have been given a leg up on its global competition, but that advantage is being eroded and could be eliminated rather quickly once the United States ends federal prohibition, industry insiders warn, and it isn’t difficult to imagine. Federal laws allowing banking services, public investment, normal tax rules, and exports has made Canada the international cannabis industry leader, with companies expanding into legal US states and into other nations around the world, even sometimes making moves before major reforms pass, utilizing insight to follow the momentum.

However, with the United States making progress, especially with California companies striking huge deals with business moguls, Canada could lose its place at the top, especially if rules regarding advertising are not addressed. With US companies able to better leverage relationships with worldwide stars like Jay-Z, marketing rules, including on social media, need to be adapted, as Vice covered:

According to federal regulations in Canada, celebrities can’t give a testimonial about a licensed producer’s product, talk about its price, or say anything about it to minors. They can harness what’s known as “the halo effect” and hope that star power rubs off on the brand.

These are just a few of the rules that, according to cannabis industry and observers alike, leave Canadian cannabis companies at a disadvantage. This presents a huge challenge because they’re up against U.S. companies that are gearing up for a global fight, with big budgets and a deep bench of executives who have already established successful retail brands—such as Victoria’s Secret, Home Depot, and Pepsico’s Frito-Lay.

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Cannabis marketing expert Kayla Rochkin said it’s just a matter of time before America loosens the rules federally. As vice president of marketing for TREC Brands, she works with a portfolio of cannabis companies and has seen firsthand how challenging it is to push a product, without being able to talk in-depth about the product itself to the public. But as the clock ticks down, she said Canadian companies are losing whatever first-mover advantage they may have had because of strict rules limiting brands from touting their advantages over rivals.

Confusingly, Canada’s Cannabis Act prohibits producers from marketing techniques that promote the business or product “in a manner that associates it or the brand element with, or evokes a positive or negative emotion about or image of, a way of life such as one that includes glamour, recreation, excitement, vitality, risk, or daring.” If any business, especially a small to medium enterprise that wants to find a niche as a craft cannabis company, branding with a positive emotion or way of life is key. Once the United States legalizes for all adults and starts exporting, US companies will enjoy a huge marketing advantage. Canada has been the king of the hill, but there’s a sleeping giant that’s about to wake up.

Stay up-to-date on the latest rules and develops while networking with top investors and entrepreneurs at the upcoming International Cannabis Business Conference in Vancouver, Canada, this September 15-16. Early bird tickets are available until August 21st. After the British Columbia excursion, we’ll be heading to San Francisco, California, on February 6-7. 

 

Canada Brings in $186 Million in Tax Revenue as Sales Continue to Increase

Written by Anthony Johnson on . Posted in Business, Vancouver.

It’s no secret that cannabis sales in Canada have gotten off to a relatively slow start as the government has taken a rather conservative, cautious approach to licensing, as government officials’ public safety concerns have been given top priority. Regulatory hurdles have hindered efforts to open up brick and mortar stores, caused supply chain issues, and completely prohibited the sales of any extracts, concentrates, or infused products. Thankfully, more stores are opening up, the supply chain is improving, and Canadian consumers will finally be able to by hash, oils, edibles, beverages and other cannabis products by the end of the year, so overall sale numbers should continue to climb. And sales are already improving as the federal government collected $186 million in tax revenue when legalization started last October, through March of 2019.

Revenue collection is set to only get better as adult-use cannabis sales jumped up to $19.6 million in Ottawa alone in April, after averaging just under $9 million the previous 5 months as Marijuana Business Daily reported:

Adult-use cannabis sales in Canada’s largest consumer market more than doubled in April on the back of new store openings, representing “powerful evidence” of pent-up demand for regulated marijuana after months of stagnation, according to experts.

Receipts of recreational-use cannabis products in Ontario totaled 19.6 million Canadian dollars ($15.1 million) in the month, recent data from Statistics Canada shows, up from CA$7.6 in March and CA$7.5 million in February.

April’s receipts consider the first monthly sales at fewer than two-dozen physical stores in the province.

Global News covered the overall tax revenue numbers:

The provinces took the lion’s share of that money, with $132 million in combined sales tax and excise tax revenue; the federal treasury took in $55 million.

Governments face a dilemma taxing cannabis, says Brock University business professor Michael Armstrong.

“It’s a tradeoff — the more you increase taxes the more revenue you get, but that increases prices and makes you less competitive with the black market.”

While it is admirable for the Canadian government to place officials’ health and safety concerns over the desire to raise revenue, it is clear to those with a lot of experience with cannabis, that a too burdensome approach isn’t needed. The sky hasn’t fallen in Canada and it won’t fall, as the fear mongering nonsense spouted by Reefer Madness prohibitionists gets proven wrong time and time again. Slowly but surely, regulators, politicians, and policymakers are learning the truth about cannabis and they are easing regulations. You can give more freedom to adult consumers in cannabis, the freedom to choose a safer alternative to alcohol and tobacco, while creating more jobs and revenue. As has been seen in Ottawa, and other provinces, build the cannabis retail stores, and consumers will come. And the sky will still remain high above the Great White North.

The International Cannabis Business Conference in Vancouver this September 15-16 is the industry event to learn the latest and to network with top investors and entrepreneurs. Secure your spot and save by purchasing discounted, early bird tickets by August 21st. 

Full-Time U.S. Cannabis Jobs to Top 175,000, Increasing 34%, in 2019

Written by Anthony Johnson on . Posted in Business, Vancouver.

Earlier this week, an economic report projected global cannabis sales to increase to 36% in 2019, with dramatic growth expected over the next five years, thanks to an expansion of existing markets and future ones not open just yet. That new business growth is good for companies, investors, consumers, tax collectors, and employees. Not surprisingly, bigger market share means more jobs, and U.S. jobs are expected to increase by 34%, with the total number of people employed full-time in the cannabis industry to range between 175,000 to 215,000, up from 130,000 to 160,000, according to a new report. Existing data shows that these cannabis jobs, on average, pay more than other business sectors. If the growth pans out, then there will be more people working full-time cannabis jobs than there are web developers. With markets expanding across the nation, this growth is projected to continue, with more than 385,000 jobs by 2023.

More from MJBizDaily’s Annual Marijuana Business Factbook:

  • Total economic impact of the cannabis industry will be range from $39.2 billion to $48 billion in 2019 – about a 35% increase over 2018.

  • U.S. cannabis sales in 2018 were between $8.6 billion and $10.8 billion – more than U.S. spending on e-cigarettes, the video game Fortnite and Goldfish crackers.

  • U.S. sales of cannabis in 2019 will be about 35% higher than 2018 and could reach $30 billion by 2023.

Cannabis sales in California are certainly due to increase and more states will soon join Illinois in legalizing cannabis, with New York, New Jersey, and Delaware looking to end prohibition for all adults very soon, so it isn’t shocking to know that dramatic job growth is expected. However, the sheer number of full-time cannabis workers is truly astounding, considering the fact that only 11 states and Washington, D.C., have legalized and Vermont and D.C., as of now, don’t yet allow cannabis commerce. It is great to see that the cannabis community is creating more jobs, revenue, and freedom, across the United States, and are work isn’t nearly done yet.

The International Cannabis Business Conference is the best place to learn the latest about the industry and to network with top investors, entrepreneurs, and employers. Next up: Vancouver, British Columbia, Canada, this September 15-16. Be sure to purchase your early-bird tickets by August 21st to save.