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The Continuing Importance Of The German Medical Cannabis Market

Even with the impact of Covid, the German cannabis market has continued to power forward. Several new distribution deals have been finalized in the last six months, and a German distributor for the domestically, bid-grown cannabis has been chosen.

Furthermore, the reference price for wholesale medical cannabis flower has also been established. 

And despite the fact that they were far from copacetic about the same, German insurers are now directly on the hook to reimburse a drug they are also now setting a commercial “end-user” price for.

This means that the country, of roughly 83 million people has a working, if still evolving market for a drug, even in its raw form, a set of standards, and at least the outline of a supply chain that is totally integrated into the mainstream medical system here.

There is no other country in the world, besides Israel, that has accomplished the same.

Medical Cannabis Is Not The Only Discussion In The Room

Furthermore, despite all the advances on other parts of this discussion (namely both “hemp” and the “CBD” markets), not to mention the now ongoing drumbeat for further reform and of the recreational kind all over the continent, there is no regulated market that even comes close to what has now been firmly established auf Deutschland.

Namely, although it can still be a fight if not a major administrative, paper-strewn pain to become a medical cannabis patient, that possibility is becoming more and more mainstream.

And further, certainly, in Germany it is absolutely possible to buy hemp-based products if you want to. You just pay out the nose for high-quality product.

What Does This Mean For Other European Countries?

There is little chance that the European Union will be able to deflect if not punt on the topic of medical cannabis this December after the WHO makes what is expected to be at least a clarifying decision about what cannabis actually is. That this may still leave CBD in the “narcotic basket” is one issue. Hopefully, hemp will drop out of the discussion – leaving still the thorny issues surrounding “novel food” which will also not just fade away.

However, by redefining the plant as a drug, even if only looking at it through the THC lens, the WHO is lining up to at least support the infrastructure created nationally by a few countries (Germany and Israel being two of the leading cannabis medical infrastructures in the world). And everyone else, will in the end, find themselves playing catch-up.

For the best analysis and understanding of the changing market in Germany if not across Europe, be sure to attend the next International Cannabis Business Conference in Europe in 2021

Q’3 Overview Of The German Medical Cannabis Market

As the leaves begin to turn this year and the days grow shorter, a period also known as Q’3 2020, what and where is the status of the German medical cannabis market?

That is a very good question, in part because of the evolving shape of both the medical and non-medical market here.

In summary, here are the major takeaways:

Nobody Knows How Many Patients There Actually Are: By industry estimates and reports drawn from the public reporting of Germany’s association of public health insurers (GKV), there have been about 100,000 applications so far since 2017 to the major statutory health insurers (who cover 90% of the population). Of these, it is estimated that there are about 60,000 regular patients. The amount of actual patients however is currently unknown.

When one counts the actual number of activist patients, those who are buying and or cultivating in collectives, or who go to the black market out of sheer frustration in getting a doctor to write a prescription (or affording flower in a pharmacy), the pool of real patients in Germany is much, much larger.

Further medical reform here is clearly in the offing no matter how slow. And no matter how delayed German grown cannabis has been here, it is coming – distributed via one specialty distributor in Frankfurt. 

A former health minister and vice-chancellor of Germany also just made waves, if not a strong political statement when he recently joined the board of a Swiss cannabis company.

Imports Will Continue To Play A Large Role: There is no doubt in anyone’s mind that exports from the rest of the world (and increasingly, NOT Canada) are entering the German medical market.

This is true of both the medical and not medical market (including industrial hemp and what hemp extract can find its way to market in a variety of tortured routes).

The Hemp Market Is Still Intriguingly Bizarre: The British are setting sail in a new direction on all things hemp and CBD. Brussels, in the meantime, is very scientifically confused, or perhaps just bureaucratically diplomatic. They lose nothing by having their hands pushed by a new UN decree on the status of cannabis now on the schedule for December. The losers, generally, are hemp producers in Europe who are not ready to play the game of hop, skip and specialty import supply chain tactics. There is light in other words, but also clearly a bit of tunnel left to go.

Be sure to book your tickets for the International Cannabis Business Conference next year when it returns to Europe.

Three French Mayors Call For National Cannabis Reform

While German patient numbers continue to steadily if slowly rise, the UK begins to set out its unique stance on CBD and other European countries make similar kinds of (more) canna friendly announcements, one country in Western Europe still stands out for its decided lack of reform.

Namely France.

Despite all sorts of promises, and from the highest political office in the land no less (namely the current if unpopular President Emmanuel Macron) reform even of the medical kind has not significantly budged in France.

With no established clubs or coffee houses, even in the grey areas of the law (see Spain and Holland), an insurer mandate to cover patients (Germany) or even exploratory market tests scheduled (Denmark, Holland, Switzerland), the country indeed is the laggard not only in Western Europe, but Europe generally.

The question, really is why?

One thing is for sure. It is not a question of better cheese or wine much less a snotty attitude about pronunciation. The French government is moving like snails (and not the delicious variety with butter and garlic) when it comes to reform.

A Political Response

But all is not lost in the land of Asterix. In late September, three French mayors, Gil Avérous (Châteauroux), Boris Ravignon (Charleville-Mézières) and Arnaud Robinet (Reims), have begun to speak out as a group – and for recreational reform.

Their main concerns? That 1.5 million regular users will continue to have to buy from the black market. And of course that the black market encourages criminality and money laundering – to the tune of at least 1.2 billion euros a year.

It may not sound like much of a response, even though they are also challenging other politicians and at all levels to join this campaign. 

But it is a good sign.

A Brief History of Cannabis In The Land of “Vive La Revolution!”

Perhaps it seems strange to foreigners that the home of democratic revolutions, as well as infamous lines from the last nobility to party on – as in “Let them eat cake,” would be slow adapt to the canna revolution. However, slow it certainly has been.

As of 2013, France changed the law (in place since 1953) to allow limited medical use. And as of September 1, 2020, the penalty for being found with cannabis as a user was reduced to a 200 euro fine with no police custody.

For the best regulatory guidance on the changing markets in Europe, be sure to return to the International Cannabis Business Conference next year!

Yes, I Inhaled – New Zealand’s PM Admits Smoking Cannabis In Election Debate

The topic of recreational cannabis reform is absolutely atop the country’s election debate as New Zealand stares down its own national elections on October 17. Originally scheduled to take place on September 19 but delayed because of COVID, the vote for rec reform is not expected to be successful.

The majority of New Zealanders do want to see more medical reform, and the topic is likely to be a big issue going forward, particularly, if as expected, the recreational reform campaign fails at the ballot box. The country, like many others, is now beginning to quantify and structure its medical industry. That said, a full-boat “Canadian” if not U.S. state style cannabiz appears to be just a bit too forward for the Kiwis this year. And if it fails, the topic is also likely to get booted down the political pike for several years, at least.

The topic of recreational reform, however, is still enough of a political bug bear that defending Prime Minister Jacinda Ardern was forced to admit recreational use “a long time ago” in her most recent televised debate against her opponent. She has so far refused to say how she will vote on recreational reform herself.

Is Recreational Taking A Breather?

Canna history is likely to show that 2020 was clearly a transitional year for the entire industry, globally, but recreational was far from the top of the agenda just about anywhere.

There are reasons for this apart from bureaucratic decisions that are still far removed from science.

The UN is likely to reset the entire debate about the plant itself as of the end of the year – no matter what it decides.

From that point on, other countries (see Luxembourg) are likely to take the ball forward, but only against a medical discussion that first and foremost recognizes the plant and its extracts as at minimum a kind of superfood if not wonder drug.

2021 is likely to see a restart of the discussion across Europe, particularly given what has happened here so far, particularly with a greater interest in hemp and extracts as a way forward to wellness, beyond a visit to the doctor.

For the latest on industry trends be sure to attend the International Cannabis Business Conference when it returns to Europe next year.

Could A Pending Court Case Change The Cannabis Club Question In Spain If Not Europe?

The Spanish cannabis market is one that has evolved over the last several years, primarily via the very greyness of the status of cannabis per Spanish law. Namely, much like it has been for decades in Holland, Spanish citizens may consume cannabis in private “clubs.” Operating them, or indeed growing for them, however, has been perilous for many involved directly in the debate.

Now the legal challenge of one of the leaders of the entire discussion is having his day in a European Court. Namely, Albert Tió, one of the leaders of the Spanish club movement, has a human rights case now headed to Strasbourg. 

Tió, a 53-year-old activist and father of minor children, was the secretary of one of the largest cannabis associations in Barcelona with nearly 4,000 members. In February 2014, the indoor grow facility that supplied the association was shut down by police, and both Tió and two other directors were convicted of crimes against the “public health and illicit association” by the Provincial Court in Barcelona.

This sentence was later ratified by the Spanish Supreme Court which also refused to process the appeal against the conviction. Tió, as a result, left Spain to avoid prosecution and is now seeking retribution at the European Court of Human Rights.

The Impact of The Case On Spanish (And Other European) Cannabis Clubs

The case could well have a large impact on not only Spanish but other European cannabis social club models, particularly in countries like Germany where the right of cannabis has now been enshrined as a medical one, and the right of association, even post Covid, is a hot topic.

Tió’s argument is that his conviction as one of the leading voices for cannabis reform, leading to the origin of the formal “club” law approved by the Catalan government in 2017 is a violation of the rights of autonomy and personal dignity contained in the European Convention on Human rights.

If he wins, as many suspects he might, it will have huge implications on the formal establishment of not only clubs but the associated cultivations associated with them. This in turn, especially in Spain, moves the needle towards a formally regulated industry. 

Across Europe, the win could also upset the apple cart in places like Germany, which have seen three years so far of “medical” reform but no movement whatsoever on either non-medical hemp reform (if not backward steps) and many obstacles in the way of greater medical access for most patients.

While three countries in Europe (Denmark, Holland and Luxembourg) plus Switzerland are moving forward with recreational trials if not plans, Spain as well as countries like Germany have not moved forward to enshrine a formal medical or recreational industry. This also appears now to be on the brink of changing, one way or the other.

For the latest updates on the ever-changing European cannabis marketplace, be sure to attend the International Cannabis Business Conference when it returns to Europe in 2021.

Lawmaker In Australia Pushes For Cannabis Decriminalization

Cannabis policies can take on many forms around the globe. Unfortunately, the most common form is prohibition. Cannabis reform is thankfully spreading across the globe, however, the majority of countries on the planet still prohibit cannabis.

A far superior yet rarer form of cannabis policy is adult-use legalization. Currently, only Uruguay and Canada have this policy in place. Many countries also permit the legal use of cannabis for medical purposes.

One policy area that is somewhat in between the others is cannabis decriminalization.

Cannabis decriminalization is not the same as legalization in that there is still a penalty for cannabis possession, yet it is also not the same as full-prohibition because cannabis possession is treated as a civil infraction under a decriminalization policy and not treated as a criminal offense.

Cannabis decriminalization appears to be the favored policy for at least one lawmaker in Australia. Per Daily Mail:

Calls for cannabis to be decriminalised are growing with one MP saying the drug is no more addictive than booze or tobacco.

New South Wales Labor MP Rose Jackson told parliament on September 23 legalising the drug would be ‘economically sensible’.

Decriminalization and legalization are often used interchangably by lawmakers even though they are not actually the same thing.

With that being said, even decrminalization is an economically sensible public policy because it lets cops go after real criminals instead of prosecuting and incarcerating people for cannabis.

MP Jackson is 100% correct that cannabis is no more addictive than alcohol or tobacco and cannabis should be regulated in Australia as such.

Unlike tobacco and alcohol, the cannabis plant has never killed anyone. If alcohol and tobacco are legal in Australia and can be properly regulated, then the same should be true for cannabis.

UK Food Regulators Pushback On ‘CBD Is A Narcotic’ Categorization

Cannabidiol (CBD) is one of the most popular substances on earth right now. CBD’s level of popularity has grown exponentially in the last 5 years, and there’s no end to the spike in popularity in sight currently.

Part of the reason why CBD’s popularity has exploded in recent years is the increase in media coverage. That media coverage has touched on positive studies related to CBD’s medical value, as well as stories involving patients that have successfully treated their condition(s) with CBD.

As more and more patients try to find safe alternatives to pharmaceutical drugs many of them will presumably try CBD and a significant number that try CBD will likely find it to be beneficial and continue use.

Unfortunately the European Commission does not appear to be a big fan of CBD, at least not from a safety standpoint.

The European Commission recently categorized CBD as a narcotic. That categorization is being rejected by food regulators in the United Kingdom. Per Hemp Industry Daily:

Great Britain has rejected the European Commission’s preliminary stance that hemp flower-derived CBD should be regulated as a narcotic, a key food safety regulator in the United Kingdom says.

Paul Tossel, who leads the Novel Foods authorities at London’s Food Standards Agency, said Tuesday that although British authorities continue to mirror requirements set out by the EU’s Novel Food Regulation and the European Food Safety Authority, they did not agree with the Commission’s assessment.

Tossel said during a panel on the future of CBD in grocery retail that the European Commission’s preliminary CBD position isn’t shared by the U.K.’s Home Office, a government department that oversees drug policy and law enforcement.

There’s no valid reason to categorize CBD as a narcotic. CBD has been found to be safer than most household substances and is by all measures a relatively benign food ingredient from a health risk standpoint.

CBD is an amazing ingredient for food products because it provides wellness benefits without any risks and doesn’t seem to affect the taste of the food product. CBD is in many ways a ‘wonder food’ and should be classified accordingly.

Former New Zealand Prime Minister Joins New Cannabis Legalization Poster Campaign

New Zealand may become the third country to pass a cannabis legalization measure. It all depends on whether or not New Zealand voters approve a cannabis legalization referendum measure next month during New Zealand’s election.

The election in New Zealand was originally scheduled to occur this month, and along with it the vote on the legalization measure, however, a coronavirus outbreak resulted in the election being delayed by roughly a month.

Polling for the legalization measure has been all over the place, with several polls showing the measure winning and several others showing that the measure is losing. What will happen on Election Day in New Zealand, which is now October 17th, is anyone’s guess at this point.

The New Zealand legalization effort received a boost recently via a new poster campaign in support of the referendum. The poster campaign features 60 people expressing support for the measure, and one of those people is former New Zealand Prime Minister Helen Clark. Per RNZ:

It includes some familiar faces, like Helen Clark, as well as everyday Kiwis who support legalisation.

Dame Diane Robertson is one of those 60 New Zealanders. She’s the executive director of the New Zealand Data Trust, and the former Auckland City Mission chief executive.

“I think it’s time we legalise something that has been commonly used but at the moment we’re penalising people, particularly people who are low income and Māori about a drug that a lot of people are using … it’s a waste of police time, of resources and it marginalises people.”

It’s not every day that a former prime minister of a nation endorses a national cannabis legalization effort. This is obviously a really big deal.

Whether or not it proves to be a big enough deal to resonate with enough New Zealand voters to push the measure over the top remains to be seen and we will ultimately find out on October 17th.

If the measure is successful New Zealand would become the third country to legalize cannabis for adult use along with Uruguay and Canada.

International Travel Icon Rick Steves Urges Voters To Support Legalization

Rick Steves is one of the most beloved humans on earth. Steves’ books and television shows dedicated to traveling the world have been read/viewed by tens of millions of people all over the globe.

Steves is one of the biggest champions for cannabis reform that the cannabis community has ever known. He has fought for cannabis reform and leveraged his celebrity status to support legalization efforts all over the planet, including and especially in the United States.

Rick’s support of cannabis reform is a big reason why we were so honored to have him as a keynote speaker at our virtual cannabis event that we held earlier this year.

Rick Steves is urging voters in various states to support legalization initiatives that will be appearing on the ballot in November. Below is more information about it via a press release that was sent to us by our friends at NORML:

Internationally renowned travel guide, author, and NORML Board member Rick Steves released a video message today urging voters this November to decide in favor of a number of statewide ballot proposals seeking to legalize the use of marijuana for either medical or adult use.

In his message, Steves calls the criminalization of marijuana a “counterproductive law” with racist origins, and praises state-level legalization policies for having raised tax revenue, mitigated the size of the illicit market, and promoted civil liberties. “We’re glad we legalized [marijuana in Washington state in 2012] and so are citizens in lots of other states. And with this election, in your state you can legalize too. Be sure to vote, and vote ‘yes’ on marijuana.”

Voters in Arizona, Montana, New Jersey, and South Dakota will decide on adult-use legalization ballot initiatives on Election Day. Voters in Mississippi and South Dakota will decide this November on medicalization ballot measures.

In a text accompanying his video message, Steves wrote: “I’ve campaigned for marijuana legalization in six different states — Washington (2012), Oregon (2014), Massachusetts and Maine (2016), and Illinois and Michigan (2018) — and in each one, we’ve been successful. And for 2020, as I’m doing that work from home, I’ll be ‘barn-storming’ virtually in four states: New Jersey, Arizona, South Dakota, and Montana. We’re polling well in all four states and fully expect to win — as long as people who believe it’s time to update the racist and counter-productive current laws get out to vote.

“Partnering with MPP (the Marijuana Policy Project, in South Dakota and Montana) and NORML (the National Organization for the Reform of Marijuana Laws — of which I’m a longtime board member — in Arizona and New Jersey), I’ve committed myself to ten solid days of media work (from September 21 through September 30) in these four states.

“I see this work as a civic duty…an act of good citizenship. If you care about fighting racism, defending civil liberties, and replacing a thriving black market with a highly regulated and taxed legal one, I hope you can work to elect politicians who favor an end to the prohibition on marijuana with this year’s election.”

NORML‘s Erik Altieri said: “We are thrilled to have Rick Steves taking time out of his busy schedule to emphasize that marijuana prohibition laws are a tragic, costly, and counterproductive policies for our country. Rick knows, as do the majority of voters in this country, that it is time to end this failed policy and legalize marijuana.”

Further information and additional videos are available at RickSteves.com here.