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Report: Legal Global Cannabis Sales To Jump 22% In 2022

This year is setting up to be a very big one for the emerging international cannabis industry. The legal cannabis industry now operates in virtually every corner of the globe, with more and more countries getting on the right side of history and embracing the cannabis plant and the industry that surrounds it.

A vast majority of what is legally bought and sold across the globe involves medical cannabis products, although adult-use cannabis sales in Canada and Uruguay remain strong. Canada and Uruguay are the only countries that currently have legal adult-use markets. Malta legalized cannabis late last year for adult use, however, sales are still prohibited until licensed non-profit clubs are implemented.

Total legal cannabis sales are expected to increase by roughly 22% according to a new report from cannabis industry data company BDSA. The same report also projected that the global cannabis industry will likely increase to more than $61 billion in legal cannabis sales within five years.

“Though most legal cannabis markets saw sales soften in the second half of 2021, the global cannabis market is expected to see brisk growth in 2022, driven by strong sales in new and emerging markets in the U.S., steady growth in Canada and international markets lead by Mexico and Germany,” said Jessica Lukas, chief commercial officer at BDSA via a company press release.

“Sales of legal cannabis products, including cannabis-derived pharmaceuticals, outside the U.S. and Canada were estimated at $1.4 billion in spending for 2021 and are forecast to grow to $2.2 billion in 2022. International sales are expected to reach $9.5 billion by 2026, a CAGR of approximately 46% from 2021. The bulk of that new spending will be driven by Germany and Mexico, though France and the U.K. will contribute significantly as well.” BSDA’s press release stated regarding international cannabis sales.

Legal cannabis sales in Canada reached an estimated $3.8 billion in 2021 and are projected to climb to $4.7 billion in 2022 and nearly $6.3 billion by 2026, a CAGR of 11% from 2021. Ontario is expected to spearhead this growth, with this province growing over $1.3 billion by 2026. British Columbia will also be a leading contributor, adding $420 million to total sales by 2026.” the press release stated about Canada specifically.

Medical Cannabis Production Becomes Legal In France

The decree, published in the Official Journal on February 18 will enter into force as of March 1

Quite quietly, France is moving into the medical cannabis discussion. As of March 1, it will be legal to cultivate cannabis for medical purposes. The change in the law was published in the official government register, the Official Journal, several weeks ago and comes into force this week.

France has been slowly dipping its toe into the entire discussion, dragged less by governmental enthusiasm for the sector much less reform, and more by political pressure. In addition to this, the legal discussion in France has been so fraught that case law, namely the Kanavape case, opened up the discussion on an EU level.

That said, there is clearly a long way to go before the industry comes anywhere close to normalizing here. The decree itself, according to French legal experts, is just as flawed as the recent decree to begin sales of cannabis products but banned cannabis flower. Last month, the Conseil d’Etat the country’s highest administrative court, put a temporary stay on the prohibition of hemp flowers.

On top of this, there is no guarantee that the National Agency for the Safety of Medicines and Health Products (ANSM, or the French FDA), may not want a competitive market. There is precedent for this in Europe. In Germany, BfArM, the equivalent in ANSM here, put out a competitive bid for the cultivation of medical cannabis in the country, limited to just three companies and excluding German firms. They also created a monopoly on the distribution of these flowers – giving only one German distributor, based in Frankfurt, the right to distribute the same.

There is no reason that the French government will be any more interested in promoting a robust, and competitive industry by opening the doors to wider cultivation.

ANSM has been running a highly limited medical cannabis program for a year that continues until March of next year. External producers are required to provide cannabis flower, products, and associated products, like vapes, for free. According to the agency, it has set up a temporary scientific committee to define the specifications for national medical cannabis medicines. The group consists of 11 members, drawn from ministries including the National Research Institute for Agriculture, Food and the Environment and the Conseil Order of Pharmacists.

France may indeed be moving with the rest of Europe if not the world to finally accept the medical efficacy of the drug. That said, recreational reform is still a long way off here, despite high levels of illicit consumption. The lower house of the French Parliament rejected a bill last month that introduced the idea of a controlled adult-use market.

Be sure to keep up to date with the rolling cannabis reform efforts now afoot across Europe. Book your tickets to the upcoming International Cannabis Business Conference events in Barcelona, Berlin, and Zurich!

NCAA Raises Cannabis Testing Threshold – What Does This Mean For International Sports?

The National Collegiate Athletic Association raises its testing thresholds – could this impact European sports organizations as well?

Following the announcement that the National Football Association (NFL) would be funding two medical studies on cannabis to the tune of $1 million earlier in the month, the NCAA has also put forward an announcement about its own change of policy on the cannabis front.

Last Friday, the NCAA raised its testing threshold for cannabis and recommended reduced penalties for student athletes who test positive for cannabis use. This is a significant change for the organisation.

The new guidelines are in line with THC guidelines established by the World Anti-Doping Agency.

Further, the NCAA also recommended that its penalty structure is changed. Namely, after a first positive test, an athlete will not lose eligibility if the student’s school provides drug education for the student. This is also the case for the second positive test if the athlete’s school confirms that the student was compliant after the first incident. However, if the athlete was not compliant, they will be withheld from 25% of regular season play. After a third positive test, students will be withheld from 50% of regular season play if they have not been compliant in the school’s anti-drug education program.

Previously, athletes who tested positive for cannabis would be suspended for half a season and remain ineligible until the suspension period was completed and a subsequent negative test.

Where American Sports Go, So Will Global Ones

The move to accept cannabis use by athletes from prominent sports organizations – both professional and amateur, in the United States, is likely to push other global sports organizations to follow suit. This includes the Olympics, international tennis and of course soccer. Last year, Olympic favourite Sha’Carri Richardson was banned from competition after she tested positive for cannabis use.

Right now, cannabis sports meds are in a very early stage just about everywhere else. According to the German Journal of Sports Medicine, “Although the physical effects of cannabis are relatively minor, the increase in heart rate and blood pressure can cause problems. There are known cases in which cannabis has caused or promoted cardiac arrhythmias, heart attacks, and probably strokes.”

That said, give it time. The medical cannabis conversation continues to roll on, and where reform goes, sports organizations will follow.

Be sure to book your tickets to this years’ International Cannabis Business Conference events in Barcelona, Berlin, and Zurich.

Anticipating Supply Chain Issues In The Emerging International Cannabis Industry

The rise of the legal cannabis industry is interesting in many ways and full of excitement. However, the emergence of the legal cannabis industry has also resulted in a lot of growing pains, especially at the international level.

When any industry scales to an international level there will be hurdles, and that is particularly true for the cannabis industry. Supply and demand is typically the main factor at play for most industries, yet, with the cannabis industry, there are additional layers involved.

Cannabis is still prohibited at the international level via various treaties and agreements between nations, and many countries still cling to complete prohibition. Simultaneously, there is a growing list of countries that permit the cannabis industry to legally operate within their borders and/or allow cannabis imports and exports.

Add to all of that a heavy dose of shifting and often conflicting national-level regulations and it becomes obvious why it is a very tricky task to try to scale a cannabis business to an international level.

Supply Chain Issues

One part of the cannabis industry that is particularly headache-inducing is anything dealing with supply chain issues. It is well-known that the pandemic has caused shortages of various things due to production being halted and shipments being delayed around the globe.

The emerging cannabis industry is particularly affected by supply chain issues due to the rate at which the industry is growing in size. Packaging, technology, cultivation equipment – the international cannabis industry requires a significant amount of inputs and any hiccup in the supply chain inhibits growth.

Supply chain issues are further exacerbated by differing industry regulations. Cannabis products are regulated more than almost any other product on earth, requiring specific packaging and labeling and other mandated requirements.

International cannabis companies often need unique packaging for every country/market that they operate in, with labeling that displays specific testing requirements via labs that use government-mandated testing equipment. It only takes one snag in the process at any point to put the entire process in peril.

Developing Strategies

Navigating the cannabis industry supply chain labyrinth is no easy task, especially considering that rules and regulations are constantly changing with no end to that trend in sight. Setting up solid supply chain strategies can literally be the difference between a cannabis company succeeding at the international level or having to close down operations.

The best place to learn from true experts regarding supply chain strategies is at the upcoming International Cannabis Business Conference in Barcelona on March 10th. The event will feature a panel specific to developing international cannabis industry supply chain strategies. The panel will be moderated by journalist and entrepreneur Marguerite Arnold. Arnold regularly contributes to this blog. Arnold will be joined by Shlomo Booklin, Chief Cannabis Strategist at Juicy Fields, Luc Richner, CEO and founder of Cannavigia, and Clint Younge, President of Charlie’s Cannabis Co.

This year’s conference will also feature a one-on-one fireside chat with acclaimed entertainer Jim Belushi. Jim Belushi is a man of many talents – actor, singer, comedian, dancer, and now a legal cannabis farmer. Join Jim Belushi and journalist Micha Knodt as they have a one-on-one discussion about Belushi’s career, cannabis advocacy, and his current cannabis industry endeavors via Belushi’s Farm and its famous signature brands. Belushi and Knodt will also discuss Belushi’s new hit Discovery Channel cannabis reality show ‘Growing Belushi’.

The most entertaining man in cannabis, Ngaio Bealum, will serve as the International Cannabis Business Conference’s Master of Ceremonies in Barcelona. Additional speakers include:

    • Jamie Pearson – President and CEO, Bhang Inc
    • Bernardo Soriano Guzmán – CO-CEO, S&F Abogados
    • Guillermo J Fernandez Navarro – CO-Founder, S&F Abogados
    • Nic Easley – CEO of 3C Consulting and Managing Director of Multiverse Capital
    • Luna Stower – VP Business Development, Ispire
    • Sergio González aka Weedzard – President, 420 Movement
    • Iker Val – CPO, Sovereign Fields
    • Chloe Grossman – Executive Director of Corporate Growth, Trulieve Cannabis Corp
    • Roberto Algar – Managing Director, Curaleaf Switzerland
    • Santiago Ongay – CEO, Sabia
    • Kai-Friedrich Niermann – Founder, KFN+ Law Office
    • Dr. Juana Vasella – Attorney of Law, MME Legal Zurich
    • Joan Simó Cruanyes – Coordinator of Cananbis Hub UPC
    • Aaron Smith – Co-Founder and Executive Director, National Cannabis Industry Association
    • Lisa Haag – Founder, MJ_Universe
    • Juanma Fernández – CEO, Easy CSC Group
    • Zeta Ceti – Founder and CEO, Green Rush Consulting
    • Ruben Valenzuela Moreno – CTO, Valenveras

The International Cannabis Business Conference also has additional upcoming events in Berlin in July 2022 and Zurich in September 2022. A limited number of tickets are still available.

What Is The Status Of Cannabis Clubs In Spain?

It is no secret that Spain is home to one of the best cannabis communities on earth and that at the heart of that community is private cannabis clubs. Spain is home to hundreds of cannabis clubs, with the Barcelona region being particularly well-known for its cannabis clubs.

The ‘club model’ is largely a Spanish creation. The model involves people signing up for private membership to a cannabis club and paying a fee, after which they can frequent the club to purchase cannabis and socialize. It’s how many people both locally and from around the world acquire their cannabis and/or entertain themselves in Spain.

Unfortunately, the clubs are not technically recognized as being legal by Spain’s government, and even though Barcelona specifically passed a local measure to allow cannabis clubs, that measure was eventually overturned by Spain’s top court. Enforcement is lax in Spain, however, clubs operate in a legal gray area.

Why Not Embrace Cannabis Clubs?

The cannabis club model is far from new in Spain, and unknown amounts of unregulated cannabis is sold via Spain’s cannabis clubs every day. For some reason, lawmakers in Spain seem to want to stick their heads in the sand and pretend that the clubs and their activities do not exist.

That approach will become far less tenable now that the first country in Europe has legalized cannabis for adult use. Malta passed a legalization measure late last year that will create an industry entirely based on the cannabis club model. It makes zero sense for Spain to stand by and do nothing while Malta reaps the rewards for passing sensible legislation.

Spain needs to not only allow cannabis clubs to legally operate – the country needs to embrace its cannabis clubs and help them thrive by passing sensible regulations to bring them out of the shadows and into the light. Doing so will create jobs, generate public revenues, and provide boosts to local economies. It would also help keep people out of jail.

What Does The Future Hold For Spain’s Cannabis Clubs?

The International Cannabis Business Conference is coming back to Barcelona on March 10th. The event, which is part of the world’s largest cannabis superconference along with Spannabis, will feature a panel specific to the topic of cannabis clubs in Spain and is the perfect place to gain insight into what the future may hold. The panel, titled ‘Current Challenges of Cannabis Social Clubs in Spain,’ will be moderated by Òscar Parés – Deputy Director of the ICEERS Foundation. It will also include Albert Tio, founder of Airam and President of Fedcac, and Patricia Amiguet, founder of Pachamama Cannabis Association and President of CatFAC.

This year’s conference will also feature a one-on-one fireside chat with acclaimed entertainer Jim Belushi. Jim Belushi is a man of many talents – actor, singer, comedian, dancer, and now a legal cannabis farmer. Join Jim Belushi and journalist Micha Knodt as they have a one-on-one discussion about Belushi’s career, cannabis advocacy, and his current cannabis industry endeavors via Belushi’s Farm and its famous signature brands. Belushi and Knodt will also discuss Belushi’s new hit Discovery Channel cannabis reality show ‘Growing Belushi’.

The most entertaining man in cannabis, Ngaio Bealum, will serve as the International Cannabis Business Conference’s Master of Ceremonies in Barcelona. Additional speakers include:

    • Jamie Pearson – President and CEO, Bhang Inc
    • Bernardo Soriano Guzmán – CO-CEO, S&F Abogados
    • Guillermo J Fernandez Navarro – CO-Founder, S&F Abogados
    • Nic Easley – CEO of 3C Consulting and Managing Director of Multiverse Capital
    • Luna Stower – VP Business Development, Ispire
    • Sergio González aka Weedzard – President, 420 Movement
    • Iker Val – CPO, Sovereign Fields
    • Chloe Grossman – Executive Director of Corporate Growth, Trulieve Cannabis Corp
    • Roberto Algar – Managing Director, Curaleaf Switzerland
    • Santiago Ongay – CEO, Sabia
    • Kai-Friedrich Niermann – Founder, KFN+ Law Office
    • Dr. Juana Vasella – Attorney of Law, MME Legal Zurich
    • Joan Simó Cruanyes – Coordinator of Cananbis Hub UPC
    • Aaron Smith – Co-Founder and Executive Director, National Cannabis Industry Association
    • Lisa Haag – Founder, MJ_Universe
    • Juanma Fernández – CEO, Easy CSC Group
    • Zeta Ceti – Founder and CEO, Green Rush Consulting
    • Ruben Valenzuela Moreno – CTO, Valenveras

The International Cannabis Business Conference also has additional upcoming events in Berlin in July 2022 and Zurich in September 2022. A limited number of tickets are still available.

Colombian Government Passes CBD Regulation

Regulation 227 aims to make the country’s cannabis industry more competitive by allowing the export of dried flower and other CBD based products

Colombia is positioning itself as a comer in the global cannabis market. The latest move, allowing GACP certified CBD producers to export their product globally, is just another sign of the same. It also comes almost 8 months after the government also allowed the export of GMP grade medical cannabis flowers.

This now positions Colombia as a country poised to export other Central and South American countries and north (to Canada). The country is already a player in the European market, shipping cannabis to the UK and multiple countries in the EU, including Germany.

How legitimate is the CBD Market for International Export?

Colombia and other countries in Central and South America may be price competitive when it comes to the EU-GMP conversation, however, the jury is still out when it comes to CBD of the GACP kind.

On one hand, the fact that CBD regulations are on the normalization side (see both France and Germany), imported CBD flowers and extract is still a dodgy proposition. There is currently a de facto ban on the import of CBD in Germany right now because of this. Hemp is also a subsidized crop here, so entering this part of the market remains a ferociously competitive and regulation-strewn proposition.

That said, there is always France. 

However, Colombia is not the only country, in or outside of Europe now gunning for these markets.

The question, as it always is, is one of price.

What the entre of Colombia into the global cannabis really means is that prices, in both GMP quality and that bound for “other” purposes, are headed down.

And that, both for the medical market and the budding recreational one, is actually very good news.

Cannabis As Global Commodity

This is not to say that the entire cannabis commodity supply chain is suddenly de-kinking. Companies have been built in the German market alone by knowing how to arbitrage this most fickle of commodities. Those days are far from over yet.

However, knowing that Colombia is open and ready for business and where to talk to the manufacturers (in Europe) means that suddenly sourcing cheaper, regulated, and registered cannabis is no longer such a pain, much less expensive.

Bottom line? Colombia has made the transition from “illicit drug capital” to “cannabis exporter to the world” in a few fairly easy and smooth jumps. 

Be sure to book your tickets to the upcoming International Cannabis Business Conference events in Barcelona, Berlin and Zurich!

Jim Belushi Talks Cannabis Ahead Of Fireside Chat In Barcelona

This year’s International Cannabis Business Conference event in Barcelona will feature a one-on-one fireside chat with acclaimed entertainer Jim Belushi. Jim Belushi is a man of many talents – actor, singer, comedian, dancer, and now a legal cannabis farmer. We asked Belushi a series of cannabis questions ahead of his appearance in Barcelona and below is what he had to say:

JG: You have accomplished so much over the years as a multi-faceted entertainer. Now you are a proud cannabis farmer – how does farming cannabis compare to your other pursuits?

Belushi: They both have a lot in common. They both are on a mission to make people feel good, whether you’re making them laugh in a comedy or performing the Blues Brothers and filling their souls with music, or giving them cannabis to heal their anxieties, hopelessness, pain…. or just making them feel good and euphoric. The entertainment industry and the cannabis industry don’t hurt anybody. You can’t overdose if you laugh too much and you can’t overdose if you smoke too much pot. You may pass out if you eat too much of an edible, and I may have peed my pants from laughing too hard (especially at John Candy movies). But all in all, I’ve been at my business for 40 years and cannabis for 6 and they both have the same purpose — making people feel a little bit better. So I feel like I’m on track. They’re the same medicine.

JG: Belushi’s Farm is located in Southern Oregon. What made you decide to choose that region?

Belushi: Southern Oregon chose me. My friend has a beautiful ranch down the Rogue River that I used to visit with my family twice a year. I went into the river naked one time and came out baptized, with a new spiritual release. I said to my friend, “Do you know of any other properties around here?” And that was it. I didn’t know Southern Oregon was the premiere spot to grow cannabis at the time… I was brought to Southern Oregon.

JG: In addition to flower, what types of products does your company make?

Belushi: We are in pursuit of various skus and manufactured products. We just released a 5mg Blues Brothers ice cream in Massachusetts. We have a Captain Jack’s vape pen exclusively in Oregon (at this point). We have a great collaboration with Bhang Chocolate for the Blues Brothers chocolates. We have a collaboration with Glazed Edibles, a high end, premium product that’s full spectrum in nature in Oklahoma. We are experimenting with a different type of edible in Pennsylvania. We are mainly known for our Blues Brothers Baby Blues, a six pack of .25 joints, our Blues Brothers .7 flip top box of five joints, and our Captain Jack’s full gram and Chasing Magic full gram prerolls.

JG: What markets are they available in? Do you have plans to expand to other continents?

Belushi: As of this writing, we are available in Oregon, Oklahoma, and Colorado. By the end of the second quarter, we will be in Michigan, Massachusetts, Pennsylvania, and of course our Bhang Chocolates are extended in many states.

JG: What is your personal cannabis consumption regimen?

Belushi: I’m a microdoser. It’s medicine to me. I take 2.5-5mg of the Blues Brothers Bhang Chocolate to help me sleep. I’ll smoke a little Cherry Pie at the end of the day to help me with the transition into the evening. It’s medicine to me…”This medicine is so good, people take it FOR the side effects.”

JG: What was your experience like making your hit show ‘Growing Belushi’ on the Discovery Channel? How did that cannabis-focused project compare to other projects you have worked on?

Belushi: This is a big question and deserves its own essay. But in short, all the other projects I’ve been involved with in show business have been scripted. Growing Belushi was all improvised, every scene, every moment. That takes a lot of concentration, a lot of wit, a lot of trust in your own ability, and a lot of overshooting to pull together an hour show each week. But that being said, it’s rewarding and joyous and fun when you’re able to create everything in the show. I love it.

JG: What have you learned from visiting dispensaries in Oregon and beyond?

Belushi: I visit a lot of dispensaries. In Oregon, I actually deliver to dispensaries and I do personal appearances and meet & greets. I have learned 85% of what I know about cannabis from these visits and experiences, which has changed this from a business to a journey to the pathway to healing. There are people, so many people, in need of medicine. From the veterans with PTSD, quadriplegics with spasms, people with shattered bones from car accidents, people with MS, dementia, sleeplessness, cancer on chemotherapy…the list goes on and on. In the dispensaries, I realized this was no longer just a business, it was necessary for the health of our community, for the people who suffer, the people who struggle, the people who are screaming inside the cavity of their bodies. I personally don’t use Ambien or Xanax for anxiety or even Advil. And I don’t really drink. Cannabis has replaced all these needs. I see a community growing larger in the pursuit of using cannabis as a substitute for medications and alcohol and opiates. I have been moved to tears many times.

JG: What advice do you have for aspiring cannabis entrepreneurs?

Belushi: My advice to aspiring cannabis entrepreneurs is to stay out. The margins aren’t there yet. Between the fluctuation of the pricing of the pounds, the taxing, the banking, and the amount of initial capital, I would say don’t do it. Unless your passion overrides your pocketbook.

JG: What is the best way for folks to keep up on all of your cannabis industry pursuits?

Belushi: Through Instagram, Twitter, TikTok, and the website. And of course Growing Belushi on Discovery Plus.

***

About Jim Belushi, Founder of Belushi’s Farm

Jim Belushi is the founder of Belushi’s Farm cannabis, where his sprawling and spiritual 93 acres along the Rogue River plays home to a range of offerings—from Chasing Magic (Jim’s Secret Stash), to The Blues Brothers, to Captain Jack’s Gulzar Afghanica, a rare strain from the Hindu Kush region that became known in the ’70s as “The Smell of SNL,” and now GROWING BELUSHI, a series on Discovery. GROWING BELUSHI takes Discovery’s audiences inside Jim’s world and shows the incredible effort it takes to build a legal cannabis operation. Having suffered the loss of his brother John to an overdose and his own journey, learning and healing through cultivating cannabis, Jim’s a passionate proponent of the plant’s beneficial properties across a spectrum of uses. From enhancing joy and quality of life, mitigating trauma and managing pain, to a harm reduction approach and rebuttal of the opioid abuse epidemic, Jim advocates for patient rights and adult-use legalization while empowering craft farmers to thrive in economies of scale.

A seasoned Second City and Saturday Night Live alumni, Jim has starred in a selection of critically acclaimed movies ranging from Trading Places to Wonder Wheel, working with famed directors like Oliver Stone, Roman Polanski, David Lynch and Michael Mann. He’s also served as an executive producer, music composer, director, book author, and Broadway star. His own television show, According to Jim, aired for 182 episodes during eight seasons with the family favorite launching into off-net syndication. Along with Larry Joe Campbell and other talented Second City alum, Jim Belushi and the Board of Comedy perform improv sketch comedy at colleges, clubs, performing arts centers and venues nationwide. And, together with Dan Aykroyd, Jim tours the globe as Brother Zee of the iconic Blues Brothers. Additionally, Jim headlines his own music group The Sacred Hearts, which is the official house band for the House of Blues brand of venues.

With 42 years in the public eye and Jim’s professional career further inspired by the beauty and healing power of cannabis, Jim is actively engaged in several projects benefiting the region around Belushi’s Farm and beyond. In Medford, Jim is helping reconstruct the historic Holly Theater to bring the 1930s Spanish Colonial movie palace back to life as Southern Oregon’s largest indoor concert venue. In Eagle Point, Jim is assisting with the reconstruction of The Butte Creek Mill, destroyed in a 2016 electrical fire, to preserve its heritage, build community, and improve the environment. And where Jim looks to have the most profound impact, he’s working vigorously with scientists and the Oregon Liquor and Cannabis Commission and Portland City Council to create an opioid trade program where Veterans, the infirmed, downtrodden and addicted can have a place for healing for low to no cost. Additionally, Jim’s on the board of the Last Prisoner Project, a coalition of cannabis industry leaders, executives and artists dedicated to bringing restorative justice to the cannabis industry.

In the words of Dan Aykroyd, “If John had been a pothead, he’d still be alive today.”

https://www.belushisfarm.com

Key German Hemp Case Moves Forward In Court

The right to sell (and market) hemp is moving forward in a significant legal klage that is long overdue

Germany might be the most important (and largest) cannabis market in Europe at the moment, but nothing here has been gained without legal fights. Beyond that, while the medical market is developing here steadily if still too slowly and in fits and starts, the Germans are still behind the most cutting-edge case law on the continent on the hemp front.

Namely, after the Kanavape case in France last year, the right to sell hemp products including hemp tea and even smokable flower has arrived in France, Luxembourg, Austria, and Belgium, but aus Deutschland? Still not so much.

The last court decision on the issue was inconclusive.

Now, that right is being taken to court in Saxony’s highest administrative legal arena.

The case is a biggie – and given movements in Germany on the legislative side – namely the statements of the traffic light coalition to normalize the entire industry – is likely to solve the issue nationally.

Removing Cannabis from The German Narcotics Act

As with just about everything in this industry, this is a critical matter of timing. It is not just hemp that needs to be removed from the Narcotics Act. A compromise on the THC side of the equation is also in the offing with the entire legalization discussion.

While this hemp case is not going to solve that, it is very likely, given both decisions at the EU level and most recently in France, that this legal clash will start to set definitive case law in Germany.

If not, it is also very likely, given the lawyers as the cannabis firms involved, that this challenge will not be defeated.

Change Is Afoot in The Entire German Cannabis Market

Germany is clearly going to see fairly comprehensive cannabis reform this year and on multiple fronts.

What is interesting about this case, however, is not only its timing, but the fact that any decision on hemp legally, will then have to be enshrined in the recreational cannabis law now floating around the Bundestag.

It could not be better timed, and of course, is way overdue.

Be sure to book your tickets to International Cannabis Business Conference events this year in Barcelona, Berlin and Zurich!

What Is Up With The Canna Industry’s Mid Winter Blues?

A range of indicators show that the industry, globally, is hitting a rough patch – but don’t expect this to last.

There are a couple of bellwether developments of late that seem to indicate that the “biz” is hitting a bit of a slump. From the lackluster earnings and stock prices of the largest Canadian LPs to reports that the medical market in Germany has seen static growth – not to mention the latest rounds of buyouts and mergers just about everywhere, the industry is hitting a bit of a global growth time out.

What is going on? In an industry supposedly on a one-way track of exponential growth, such numbers can be a little dispiriting. However, there are several clear reasons for this stagnation, none of which are long-term. Here are a few of the biggies.

  1. Covid may have boosted sales in the US and Canada, but overall, the burden of new regulation and lack of regulation reform combined with the Pandemic is taking its toll everywhere. The overarching issues of profitability in the adult-use market in North America have still not been solved. And in Germany, doctors are still reluctant to prescribe, along with an approval body that, like many government agencies, has slowed to an absolute snail’s pace in approving anything new – from permits to patient coverage. With Covid restrictions on the edge of lifting just about everywhere, expect to see this change, perhaps even as early as this spring.
  2. The German market is far from saturation, but sales strategies have largely focussed on convincing still cannabis shy doctors to prescribe a certain brand of cannabis or cannabis products and hoping to convince patients to ask for the same. So far, this has proved highly expensive and inefficient. The only widely known “brand” doctors seem to fall back to is dronabinol, currently about a third to a quarter of the market. With further reform pending, including of the recreational kind, this will also impact medical sales, just in terms of being allowed to discuss much less market cannabis in general.
  3. Recreational reform is now formally on the docket in Germany, with other EU countries plus Switzerland moving forward to launch markets as early as spring 2022. This is going to have a much-needed buzz and pick-me-up effect on legalization conversations in every EU country, as well as globally.

The industry, in other words, may be in the midst of a midwinter slump, but don’t expect that to last. Inefficiencies in the industry are being kinked out, and reform, in many more places, is increasingly if not here, then just around the corner.

Be sure to book your tickets now for the International Cannabis Business Conference as it returns to Barcelona!