Author: Marguerite Arnold

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German Health Minister Gets Behind Expediting Cannabis Reform

Written by Marguerite Arnold on May 5, 2022. Posted in Policy.

Karl Lauterbach makes public statement about prioritizing recreational cannabis reform in Germany this summer

In a surprise announcement, the German Health Minister, SPD-affiliated Karl Lauterbach, has now thrown his weight behind a stepped-up schedule for cannabis legalization. Namely, he wants to put this on the summer legislative agenda rather than pushing it back to this fall (or later) as had been widely rumored.

As quoted in Handesblatt, Lauterbach said that he has “changed his mind about this in the past two years…I’ve always been an opponent of cannabis legalization, but I revised my opinion about a year ago.” He now believes that the dangers of the status quo outweigh the dangers of recreational reform.

Lauterbach’s statements about cannabis reform were part of his call for stepped-up action on several pressing issues facing the German healthcare system. Namely the need for a greater contribution from German citizens to address the huge shortfall the statutory health insurers are facing as well as the digitalization of the healthcare infrastructure.

His comments also come at a time when there is growing momentum from all coalition parties to not kick the cannabis legalization discussion can down the road anymore. During the first quarter of 2022, despite making cannabis legalization part of the election platform that put the Traffic Light coalition into power, the only thing emanating out of Berlin for months was calls for delay. The excuse was both the lingering Pandemic and then the Russian invasion of Ukraine.

Even more interesting is that Lauterbach’s comments come at a time when all three coalition partners have begun to publicly support the idea of home-grow as part of the initial reform law. This too had been widely rumored to have been dropped from discussion.

Drivers of Reform

There are several reasons that are likely behind this interesting about-face by leading figures in the new government to suddenly prioritize cannabis reform this year.

The first is undoubtedly the fact that the medical efficacy of cannabis cannot be denied anymore – meaning that the beleaguered health insurance companies will be increasingly under the gun to reform their policies about coverage – and pay for coverage of more people. That has been one of the most problematic aspects of the limited medical reform compromise made into law in 2017. Insurers have routinely turned down about 40% of applicants – forcing those who can to sue for individual compensation and those who can’t into the black market, increasing the risk of prosecution for merely being chronically ill.

The second is that with full recreational reform, patients who have been turned down for coverage – or cannot find a doctor in the first place will, at least no longer be criminalized by taking matters into their own hands.

Further, if patients are finally allowed to grow their own, additional pressure will be taken off a healthcare system that has been horrifically slow in the acceptance of medical cannabis in the first place.

As a result, it may be, after months of delay and diffusion, that there is finally a push for cannabis reform that may even take place this summer – at least on a legislative level. That is good news indeed.

Basel, Switzerland Becomes First Canton To Kick Off Recreational Cannabis Trial

Written by Marguerite Arnold on April 27, 2022. Posted in Politics.

The trial will allow up to 400 participants to buy their cannabis in pharmacies – in exchange for being study participants

Here is the great news. Switzerland is moving ahead with its recreational cannabis trial. The first canton to be approved by the federal government, Basel, will allow a very limited number of adults (over 18) to buy and consume cannabis legally, beginning in September.

Here are the other prerequisites. Participants will have to participate in a formal study over the next 2.5 years to determine the impact of consumption on their physical and mental health. Participants will also not be allowed to resell the cannabis they purchase. Anyone who does will be both penalized and ejected from the study.

Other municipalities, including Zurich, Geneva, and Bern all still have their applications pending – but are also expected to be given the green light in the near term.

According to official estimates, there are about 220,000 regular recreational cannabis users in Switzerland. This seems a bit low in a country of about 8.5 million people. Everywhere else, cannabis users represent about 10% of the population. However, other places, especially in North America, have not segmented out medical vs recreational users as their markets get going.

Only time will tell.

Medical cannabis is legal in Switzerland – however, just like in other places, it remains extremely expensive and hard to come by. Physicians must obtain special approval to prescribe and at present, there are only 2 pharmacies allowed to dispense it.

Why Does the Swiss Trial Matter?

For those used to legalization in other jurisdictions, the Swiss approach seems a bit limited and more than a lot complicated and bureaucratic. However, it represents, in its own way, an important step in Europe towards recreational reform, which has been fought if not delayed almost everywhere by authorities and politicians alike.

This trial will, undoubtedly, reveal what those in North America already know, albeit with less formal data to support it. Namely, those who consume cannabis are not criminals, couch potatoes, or drawn from the dregs of society.

Beyond this, however, a formal trial will begin to finally and definitively answer many of the questions if not counter persistent stereotypes that are still being thrown about by those who oppose the inevitable. Namely consuming cannabis is less harmful than alcohol, and those who consume other illicit drugs, along with prescription substances, tend to use less of these as they transition to cannabis.

Of course, the trial is also being avidly watched just about everywhere else in Europe where the question of legalization is a burning political issue, no matter how many people downplay its importance.

The data from the Swiss trial is also likely to show up in every debate going forward, starting with DACH trading partner Germany.

British Cannabis Chronic Pain Study Hits Setbacks

Written by Marguerite Arnold on April 27, 2022. Posted in Science.

Plans for the second British medical cannabis study hit the skids after concerns it would “soften” criminal laws against cannabis use

The British have seen many roadblocks on the way to cannabis reform. This is not just when it comes to recreational cannabis. Despite the legalization of the CBD market earlier this month, high THC cannabis remains a political third rail – especially when used for chronic pain.

A recent trial to treat this condition with cannabis, launched by a private Harley Street clinic, has just been dramatically scaled back after it failed to gain the approval of a needed ethics panel.

The plan had been to enroll up to 5,000 patients and allow them to use a tamper-proof inhaler (at a cost of about $350 per month) to consume whole-plant cannabinoids, including THC. After that, the goal was to encourage the National Health Service (or NHS) to finally cover medical cannabis costs for patients suffering from chronic pain.

So far, while it is possible to obtain high THC cannabis in the UK for medical purposes, it is impossible to receive reimbursement for chronic pain – which the government explicitly excluded from coverage.

In the United States, chronic pain is the condition most cited for regular cannabis use.

About 1 in 3 adults in the UK suffers from chronic pain – a condition characterized as severe pain that lasts more than three months.

The Domino Effect

Those who opposed the trial seem less concerned about the health of British citizens, and more about the slippery slope of legalizing more widespread medical use.
The news is significant in that it comes on the heels of news that over 5,000 medical licenses have been issued on the island of Guernsey, where cannabis cultivation, including of the high THC kind, is well underway.

Those who opposed the new British trial specifically noted that medical reform has inevitably led to recreational reform.

Sadly, this newest defeat also means that the British public, even those who are legitimately sick and use the plant to treat medical conditions that are unresponsive to other drugs – still face criminal prosecution for doing so.

As any patient who relies on THC to treat chronic pain knows, CBD flower is a poor substitute. While many use CBD to take the most extreme edge off, it is not a long-term solution.

As of today, only Project TWENTY21 dispenses medical cannabis as part of a widespread trial in the UK.

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South Africa Approves First Cannabis Pharmacy

Written by Marguerite Arnold on April 27, 2022. Posted in Business, Politics.

The pharmacy, located in Johannesburg, supplies card-carrying medical cannabis patients and is registered with federal authorities

South Africa is powering forward with its cannabis reform plans. The country has now authorized its first legal cannabis-only pharmacy.

Located in Johannesburg, THC Pharmacy also supplies two other stores – both of which only sell CBD. CBD is now widely available in South Africa, however, THC is tightly controlled – and is still only allowed for medical purposes.

A doctor associated with the pharmacy assists patients with the application for medical cards.

Each card enables a patient to purchase up to 120 grams per month and the pharmacy is hoping to register 500 patients. This would allow the business to sell between 30-50 kgs per month.

Patients must fill out an application that is submitted to the South African Health Product Regulatory Authority (Sahpra) which is also the agency that dispenses the patient cards.

But in a unique twist, the pharmacy also employs a chef to advise patients on how to cook with the plant.

To obtain the business license, the pharmacy had to meet strict standards set out by Sahpra. As it has passed these, the establishment is able to not only sell cannabis but also legally cultivate it.

More than 100 pharmacies are now planned.

More Cannabis Reform in Progress

South Africa is determined to develop this part of its economy – and for obvious reasons. There is high demand for quality products outside the country in Europe and beyond. However, the country is also making sure that domestic needs will be met as well.

This is a marked turn in the development of the industry. For example, Greece, which is also on the hunt for both foreign investment and valuable export crops, did not allow domestic patients to obtain cannabis, even for medical purposes, until earlier this spring.

Beyond this, South Africa is moving forward on all fronts when it comes to cannabis cultivation and use and has since 2018. There is currently a bill in Parliament to extend cannabis reform to allow recreational use, commercial cultivation and for individuals to grow the plant at home. It is widely expected to pass this year.

Beyond this, the country is clearly acting as a force for cannabis reform across the continent. More and more African countries are looking to the development of the industry here to base their own cannabis reform and cultivation efforts.

In the meantime, it is clear South Africa intends to lead the way.

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Sardinia Begins Regulated Hemp Production To Remediate Polluted Land

Written by Marguerite Arnold on April 27, 2022. Posted in Science.

Italy’s second-largest island has passed a measure to create a regulated hemp market to help clean up the environment

A new law designed to increase phytoremediation of polluted land may well put hemp production on steroids on Italy’s second-largest island – Sardinia. The measure, which passed by unanimous vote on the island, regulates the entire supply chain – from farm to processing.

About 600 hectares (1,500 acres) of hemp were planted in 2019 – the last year such data is available. However, there has been a concerted push to cultivate more hemp – either from first-time farmers or those who want to convert existing agricultural operations to farm the same which has driven the measure politically.

The island’s governing council said that the old unclear laws and regulations were stifling this sector of the economy on the island.

Controlling Production Seed to Sale

What is interesting about this development is that the new law differs from Italy’s national law on hemp production because it imposes an obligation to report cultivation. This is intended to create a way of controlling and tracking what is produced here. The island will maintain a database to monitor cultivation and the intended use of such crops which will also be shared with the police.

The Great Italian Cannabis Question

Italy has subsided from the cannabis reform limelight somewhat over the past several years. Undoubtedly this is partially thanks to Covid. However, it is not the only reason. Indeed, at the beginning of just this year, the highest court in the country squashed a petition effort to hold a referendum on the legalization of recreational use.

However, Italy is far from out of the game. Medical cannabis is produced in the country and there is limited medical reform. Beyond that, hemp and CBD products continue to be popular here. Italy is also head of most European countries in that, like Malta, albeit via court case rather than legislation, patients can grow their own if they cannot access it elsewhere.

How the country will proceed post-pandemic is an open question. It is clear that reform here has not gone underground. It will just take a concerted political push to get the country’s national politicians to move forward on a recreational discussion.

In the meantime, regions like Sardinia are proceeding as best they can. Hemp production for environmental remediation is an increasingly popular, non-controversial way to proceed, although this project seems to be the first in Europe to specifically focus on the environmental benefits of growing hemp.

It won’t be the last.

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European Cannabis Spring Update

Written by Marguerite Arnold on March 14, 2022. Posted in Business, Politics.

Spring is here! What is going down on the European Cannabis front?

Spring is here, and there are some interesting developments on the reform discussion front. Covid is receding but there is a big complication in the room right now. Namely, the Russia-Ukraine war.

Where and how much will cannabis reform progress this year?

Germany

All eyes are on Deutschland now. The Traffic Light Coalition promised reform, but the reality is that they are not putting this on the top of their agenda. First it was Covid. Now it is the evolving crisis in the East, along with all the complications which came with it – including sources of energy as well as overall inflation and an influx of refugees. Regardless, it is also clear that the German industry will not go away – and further that those who are in the medical space already are eager to expand into a new vertical.

Insiders say that rec reform is not likely to move legislatively, let alone any other way this year. In the meantime, lawsuits are afoot to define the legal status of imported hemp flower in the German market.

Beyond this, there is also clearly foreign money again looking to Germany to figure out where, when, and how to land. Go in too early and there is every possibility of being hung up on more legislative wait and see. So far, there has been no “too late.”

Switzerland

All eyes are on der Schweiz this spring. The country, while outside of the EU, is the first European country to move forward on a recreational trial that feels like one (in other words, not just seeds). Vendors are now getting ready for product launch via their Cantons. Stay tuned for further developments. From a pure reform front, this is the market with mo this year.

Malta and Luxembourg

The first technically “rec” markets in the EU (beyond Holland) are likely to better define rules this year. A seed market is a good start, but most people are not likely to want to grow their own.

France

The last major economy in the EU has finally bowed to the inevitable and even legalized the cultivation of medical cannabis this spring. However, there are many fights ahead, even as courts helped open the way for the sale of CBD flower.

European Victories

All is not doom and gloom, let alone wait and see. There have been some concrete victories this spring – namely the approval of novel food applications and an agreement on the percentage of THC allowed in hemp and hemp seeds on a regional basis. It may be slow, but at least it is moving.

Bottom line? There are many excuses being used by legislators to keep reform from the front burner – all of which ring hollow when the economic boon legalization will bring is factored into the equation. Europe needs this industry, no matter how many other global or even regional crises arise in the meantime.

Be sure to book your tickets to the Berlin International Cannabis Business Conference this summer!

National Cannabis Awareness Campaign Launched In UK

Written by Marguerite Arnold on March 14, 2022. Posted in Business, Politics.

BRITISH CANNABIS launches new awareness campaign for CBD products

It is not that the British don’t want cannabis reform. They do. It is just their government that does not want to move any faster for (fill in the blank) reason. This is not new. Majorities of populations are all moving into the cannabis reform column as political reform follows, sluggishly, behind.

BRITISH CANNABIS, however, an independently owned producer, manufacturer, and distributor of legal cannabis-derived products, has decided to educate the public about CBD (and of course their own products in the process). The campaign is part of a $650,000 marketing campaign to reach health-conscious British consumers over the age of 45.

It will be broadcast on the SKY and Channel 5 networks, marking the first time SKY has allowed cannabis advertising on its channel since 2019.

The company also began selling its products on eBay this month.

Changing Times

The British cannabis question generally, is in a strange place – namely still very much a grey area. London Mayor Sadiq Khan is moving forward with a pilot plan of decriminalization for London. Other areas may follow suit.

In the meantime, illegitimate operations are being raided by the police, including in abandoned buildings and (even more embarrassingly) in city centres.

Larger entities are beginning to establish themselves (like BRITISH CANNABIS) although it is still a hazardous business.

The ability to advertise is also a clear breakthrough in the entire discussion. This is still a contentious discussion just about everywhere in the American and European media markets.

Could it be that the British are finally evolving with the times?

A Long and Torturous Road

Patients are still finding it very difficult to access cannabis. Project TWENTY21, which was supposed to register 20,000 patients has, so far, only managed to enlist 2,000. Beyond that, it is still a game where only those with money can access cannabis anywhere near “legally” and that only after a major bureaucratic struggle.

Most consumers are still left out of the legal market.

Perhaps this is why the latest campaign is geared towards older consumers. They are the ones with the most money, although thanks to both Brexit and Covid, combined with rising oil prices, inflation shock is rife in the UK.

However, beyond such encouraging steps, there has been little news about the forward progression of reform in the UK so far this year.

For the latest updates on evolving cannabis business news and regulation, be sure to attend the International Cannabis Business Conference in Berlin and Zurich this summer!

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Australia And New Zealand Renew Commitment To Medical Cannabis

Written by Marguerite Arnold on March 8, 2022. Posted in Politics.

The APAC region of the world continues to develop its medical cannabis industry – but no word yet about further reform

Australia and New Zealand may well be “down under” but they are continuing to develop their medical cannabis sectors.

In Australia, the British study and trial Project Twenty21 has announced that they are expanding to the country. Project Twenty21 was launched in 2019 in the UK. The goal was to establish a national body of evidence about the efficacy of cannabis and provide patients with cannabinoid medicines at a discount. The additional cost was underwritten by licensed producers who agreed to participate. Patients had to agree that their medical data could be collected by the organization managing the effort – Drug Science.

The plan originally was to enrol 20,000 patients by the end of 2021, but so far, only 2,000 patients have joined the study. The project has been extended in the UK until the end of this year. In the meantime, the project will unroll in Australia. Releaf Clinics will be the local partner organization. Study participants will have to complete annual questionnaires and attend the participating clinics. Current users of cannabis will be excluded from the trial, which is expected to enrol about 1,000 patients.

Just a skip and a hop across the Tasman Sea, New Zealand has also just announced that it is committed to its existing cannabis scheme. The health minister Andrew Little has reiterated that the government remains dedicated to its new Medicinal Cannabis Scheme, addressing critics who have said the program is too stringent. Little said that the country will source its cannabis via firms who comply with GMP standards even though critics have said this standard creates a cost barrier for patients that is often prohibitive.

How Will This Development Impact the Global Industry?

Both Australia and New Zealand are continuing to establish their presence on the international cannabis scene even while developing their own national markets. Australia has begun importing cannabis from other countries even as some of its producers are also finding their way to Europe. New Zealand has its sights set clearly on establishing a European market for its cannabis exports. Firms are already scouring the landscape for partners.

However, the continued expansion of both two country’s medical markets and additional demand (and supply) of medicinal cannabis will do several things. It will create two more viable medical markets and will contribute to the now continued downward pressure on the price.

Many cannabis patients are not able to participate in legal programs simply because the cost of the drug is still too expensive.

Be sure to attend the International Cannabis Business Conference events in Europe in 2022, including Barcelona, Berlin, and Zurich!

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Morocco Moves Forward On Medical Cannabis Implementation

Written by Marguerite Arnold on March 8, 2022. Posted in Business, Politics.

The North African country allows medical and industrial hemp cultivation but only in three northern states

Yet another African country has now moved forward with some form of cannabis legalization. Morocco’s cabinet adopted a draft decree last Thursday allowing cultivation, under strict regulations and control – amending parts of the country’s cannabis law in the process.

Morocco changed its law to allow for the cultivation of medical cannabis in August 2021 and established a regulatory agency that is responsible for the oversight of the cultivation, export, and sale of the plant.

It is still illegal to consume cannabis for recreational purposes in Morocco.

The new decree assigns responsibility for supporting applicants and other stakeholders to the National Agency for the Legalization of Cannabis-related Activities. The agency will establish a procedure for monthly reporting on cannabis cultivation, seed production and stock and an annual inventory from each nursery. Other agencies, including the

That said, the new legislation also strictly limits reform to three states – all found in the north of the country. Al Hoceima, Chefchaoen and Taounate were the three initial areas chosen. This does not rule out the possibility of allowing cultivation in other provinces – depending on the demand of national and international investors.

A Major Provider of Illicit Cannabis Goes Legit

According to the United Nations Office on Drugs and Crime, Morocco was the world’s top producer of illicit cannabis in 2019.

The legalization of the market here will probably begin to impact that trade – although of course as even Canada has learned, even full recreational reform does not eliminate at least the grey market. It may impact the amount of hash now found in the black market across Europe, starting with Spain.

Morocco will certainly benefit more if such activities can be turned into legitimate income. It would allow the country to begin competing for at least the European medical market, which already has the attention of countries further south (including South Africa and Lesotho).

Obtaining investment for the sector now is obviously critical. It remains to be seen if the country can attract both domestic and foreign income for the purpose of developing its cannabis market.

Morocco becomes the 4th country in Africa, after Lesotho, South Africa, and Zimbabwe, to attempt to regulate their cannabis sector. So far, however, they remain the only African country to attempt to limit legal cultivation in a certain area of the country.

See you at the International Cannabis Business Conference in Barcelona this week! Be sure to book your tickets to our upcoming conferences in Berlin and Zurich too!