Policy – Page 56 – International Cannabis Business Conference

Media And Marketing In The Emerging International Cannabis Industry

Written by Johnny Green on February 7, 2023. Posted in Business, Entertainment, Policy.

Nearly every business in every industry on the planet needs to market their products and/or services to some degree in order to succeed. After all, how else would potential consumers and clients know about the business’ offerings?

When it comes to marketing, not all industries are created equal, with the emerging legal cannabis industry being a prime example. Whereas in other industries marketing strategies are only limited by financial resources and creativity, the emerging cannabis industry has additional hurdles and factors to consider due to ongoing cannabis prohibition in many jurisdictions.

Even in some legal jurisdictions where cannabis commerce is permitted, cannabis advertising and marketing rules and regulations are such that strategies can be very complicated and limited. It makes it much more difficult to make an impact from a branding perspective.

Furthermore, media and public relations efforts are also complicated for cannabis companies. Mainstream media has historically served as one of the top opponents for all things cannabis, and while that is slowly changing, generating positive media coverage that adds real value to a brand can be trickier for cannabis companies compared to companies operating in other industries. Meanwhile, cannabis-specific media continues to rise across the globe, and there are important nuances that are vital to know when corresponding with cannabis media and mainstream media outlets.

All of that is compounded by the rapidly changing landscape of the emerging cannabis industry, especially at the international level, in addition to the industry becoming increasingly more crowded with every passing year. Crafting and pursuing the right media and marketing strategy is paramount for every international cannabis company. It will be the difference between a company becoming a global powerhouse or folding.

The best way to learn how to craft a solid media and marketing strategy is to hear from true experts that have a proven track record of doing it, and opportunities like that do not pop up very often. Fortunately, the upcoming International Cannabis Business Conference in Barcelona will have a panel dedicated to the topic. The ‘Media and Marketing in the Cannabis Space’ panel will be moderated by Shane MacGuill, head of nicotine and cannabis research for Euromonitor International. MacGuill will be joined by:

Michael Knodt, freelance journalist
Simón Espinosa, CEO and founder, EN VOLÁ
Luna Stower, Chief Impact Officer, ISpire
Stephen Verbeek, President and CEO, Hello Cannabis

International Cannabis Business Conference events are attended by cannabis leaders from dozens of different countries, with the Barcelona B2B trade show serving as the first major international cannabis event of its type for 2023. The conference itself will be held at the L’Auditori de Cornellà, with the after-party being held at the Hotel Arts (Ritz-Carleton) Barcelona. You can view the event’s schedule at this link here. If you want to network with the best in the cannabis space, International Cannabis Business Conference Barcelona is a must-attend.

Spain is home to arguably the best cannabis culture on earth, with 70% of Spain’s cannabis clubs being in Barcelona. Roughly 90% of Spain voters support medical cannabis according to a recent survey by the Center for Sociological Research. Home to roughly 4 million regular cannabis consumers, 56% of residents in Spain support legalizing regulated cannabis sales to adults (18 or older). The current value of Spain’s cannabis industry is estimated to be €3.3 billion (£2.81bn) per year.

Over 1,000 people from over 40 countries will be represented at the super-event this March in Barcelona and that includes representatives from every sector of the industry as well as leading international cannabis policymakers and industry service providers. Attend the super-event in Barcelona to network with investors, entrepreneurs, industry regulators, and international policymakers and take your industry pursuits to the next level.

The International Cannabis Business Conference also has additional upcoming events in Berlin in June 2023. You can secure tickets now and take advantage of the early bird pricing discount.

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About the International Cannabis Business Conference

The International Cannabis Business Conference in Berlin is Europe’s longest running and largest industry B2B tradeshow and conference. For more information, including how to register for International Cannabis Business Conference Barcelona, Berlin, and Zurich, please visit: Internationalcbc.com. Find out more on LinkedIn, Twitter, Facebook, YouTube, and Instagram.

For more information or media inquiries, please email noelle@internationalcbc.com or call 541.864.0090.

Colombian Cannabis Exports Nearly Doubled Last Year

Written by Hazel Norman on February 7, 2023. Posted in Business, Policy.

The cannabis world is constantly evolving, particularly in recent years, and there’s no end to that trend in sight. It will be a long time before the dust from the international cannabis industry settles, however, there’s one thing that is likely a safe bet – Colombia will dominate the export market in the future.

Colombia has long served as an international supplier of cannabis, albeit unregulated cannabis. As the international cannabis industry continues to spread, and more markets go legal, many of them will turn to Colombia in an increasing fashion for supply.

Cannabis can be cultivated in Colombia much easier compared to many other countries, with the quality being comparable to what is found in other nations but produced at a fraction of the cost. This last year Colombia ramped up its legal medical cannabis exports considerably, nearly doubling statistics from the prior year on record. Per The New Century:

Bogotá (48%), Cundinamarca (30%), Antioquia (12%), Santander (8%) and Magdalena (2%), were the departments that exported US$8.4 million in cannabis between January and November 2022, which which represented an increase of 96% compared to the same period in 2021, according to figures from Dane.

There are 13 companies that reached 14 countries, where Argentina (40%), Brazil (14%), Australia (12%), Switzerland (7%), Israel (6.5%), the United States (6%) and Germany (5.5%).

“58% of these exports were destined for Latin America and the Caribbean. It is a sector that has significant potential in generating quality employment, especially for women, in different regions of the country. Likewise, cannabis value-added goods have stood out for their quality and innovation,” said Carmen Caballero, president of ProColombia.

It’s going to be very difficult for many other countries to compete with Colombia’s production. In many parts of the world, the cannabis plant can only be effectively cultivated in indoor facilities, and no matter how efficient they are they will never be able to compete with the cannabis flower that is cultivated under the sun or in greenhouses in Colombia.

Cannabis companies around the world would be wise to base their plans on a global cannabis industry that is eventually largely based on some countries cultivating cannabis, some turning raw cannabis into finished goods, and some countries serving as the top market for sales, which occurs with virtually every other agricultural crop.

A Limited Number Of People Can Now Buy Recreational Cannabis In Switzerland

Written by Hazel Norman on February 7, 2023. Posted in Policy.

A public policy experiment is underway in Basel, Switzerland where a limited number of adults are now permitted to purchase adult-use cannabis from regulated outlets as part of the nation’s cannabis commerce pilot program, commonly referred to as ‘Weed Care.’

Cannabis commerce pilot programs are not a new concept in Europe, however, getting one to a point where consumers are actually making purchases has proven to be a very heavy lift for various jurisdictions on the continent.

Arguably the biggest pilot program failure thus far in Europe can be found in the Netherlands, where a pilot program has experienced delay after delay. As it stands right now, the pilot program in the Netherlands is not expected to launch until 2024 at the earliest.

Fortunately for a limited number of consumers in Basel, Switzerland, they are now able to make legal purchases. Per Watson:

In Basel, the first participants in the regulated cannabis delivery in pharmacies obtained their legal portions of substance on Monday morning. 374 people aged between 18 and 76 are taking part in the “Weed Care” study in two phases.

The first study group of around 180 people has been able to obtain various cannabis products from nine Basel pharmacies since Monday, as the Basel Health Department announced on Monday. An ID card issued for the study entitles you to purchase it.

The goal of a pilot program is to help policymakers and regulators gather information at a local level in order to, in theory, be better suited to pass reform and regulation measures at a national level.

Some cannabis advocates have pointed to pilot programs as being a double-edged sword of sorts, in that while it does permit some legal commerce, it also possibly pushes larger reform out too far into the future.

Switzerland will serve as a great example of that potential phenomenon and it will be interesting to see if Switzerland eventually abandons pilot programs for nationwide reform once Germany legalizes. Legalization in Germany will presumably occur well before the slated end of the pilot program experiments in Switzerland.

Italy Would Obviously Benefit From Cannabis Legalization

Written by Johnny Green on February 2, 2023. Posted in Policy.

A bit of a metaphorical political food fight occurred last week on social media with two lawmakers in Italy having, shall we say, a ‘debate’ about the merits of cannabis legalization and prohibition. According to local media coverage, the back and forth between Elly Schlein and Matteo Salvini began with Salvini posting an image of Schlein with a sticker on her forehead, and the caption (translated to English), “More taxes and more joints, the priorities of the Pd to help Italians. Do we laugh or cry?”

Elly Schlein, a candidate for the secretariat of the Democratic Party, previously expressed support for legalization. Matteo Salvini, who currently serves as Italy’s Deputy Prime Minister and appears to be a devout prohibitionist, clearly took issue with that expressed support and used it to take a passive aggressive jab at Schlein. Schlein then stated (translated to English), “In the meantime, we are concerned not to make the mafias laugh. The legalization of cannabis takes away ground from organized crime, while raising the ceiling on cash and dismantling the procurement code makes it easier. They are choices. #BetterLegal”

Putting the pros and cons of each individual as a lawmaker aside, the communications about each other’s position on cannabis policy highlights the ongoing need to reform Italy’s cannabis laws. Just as cannabis prohibition does not work anywhere else on earth, so too is it an abject failure in Italy. Lawmakers in Italy would be wise to join a growing chorus of lawmakers in other countries that are calling for legalization in order to boost public health outcomes.

Prohibition Is Bad For Public Health

Over the weekend I reported on a recommendation by France’s Economic, Social and Environmental Council which called for France to pass an adult-use legalization measure, with part of the recommended measure involving the launch of regulated adult-use cannabis sales. To paraphrase the stated the position of the Council, essentially, cannabis prohibition is more harmful to public health than cannabis legalization would be.

The Council has a point. France has one of the greatest cannabis consumption rates on the planet, with data from 2020 indicating that 46% of adults in France have tried cannabis at least once, and 11% consuming cannabis annually. Nearly all of that cannabis comes from the unregulated market being that France only permits very limited use of medical cannabis, although it is worth mentioning that France did recently lift a ban on CBD products and it’s quite possible that some survey respondents were referring to that type of cannabis, often referred to as ‘cannabis light.’ Regardless, consumers would clearly benefit from products being tested prior to being sold which would occur in a regulated industry.

France is not alone in weighing the public health impacts of prohibition versus legalization. Germany is currently pursuing a similar approach, and in a more meaningful way compared to France. Whereas the Council recommendation in France is not legally binding and is merely just a suggestion, lawmakers in Germany are actively pursuing a legalization model that is geared towards boosting public health outcomes via a regulated system. Leaders in the Czech Republic have also indicated a desire to pursue a similar approach, and leaders in Italy should join them.

An Evidence-Based Approach

At best, when cannabis opponents are challenged they will offer up statistics and studies that, when put into proper context, highlight how little proof there actually is that cannabis prohibition works. Those talking points are big on scare tactics, but little on actual applicability. Cannabis prohibition does not lower consumption rates, nor does it prevent youth access. All it does is ensure that products are less safe compared to products in a regulated system, it helps organized crime profit from unregulated sales, and it diverts limited public resources away from effective public health strategies towards forcing people into the criminal justice system.

One thing that is often lost in the discussion about cannabis policy is the opportunity cost of prohibition. Enforcing failed cannabis prohibition is not free, and, in fact, is very expensive. According to Statista, the average daily cost of incarcerating someone (including for cannabis) is roughly 143 euros, which is up from 2019 when the estimated cost was 131 euros a day. That, of course, does not include the cost of the officers patrolling, the cost of the investigation, the cost of any forensic lab work, and the cost of the court proceedings. Now, multiply all of that times the number of people arrested and prosecuted for cannabis offenses in Italy and the numbers quickly add up. Obviously, not every case involves every component that I mentioned, however, at the macro level it’s still a tremendous sum when all combined together.

Meanwhile, none of those dollars go towards actual public health strategies, such as education. Regulated sales coupled with funding ongoing education campaigns helps mitigate youth consumption rates better than threating youth with possible criminal justice ramifications, as proven by the statistics in some legal jurisdictions like the State of Oregon where I live. The funds saved by no longer enforcing failed prohibition, coupled with the revenues generated by a taxed and regulated industry, can provide governments with funding levels for public health strategies that they currently can only dream about. That would obviously include Italy, but only when lawmakers like Matteo Salvini refrain from making prohibitionist quips, and instead focus their energy on pursuing a sensible approach towards cannabis public policy.

Argentina Creates A National Agency For Cannabis

Written by Hazel Norman on February 2, 2023. Posted in Business, Policy.

Argentina’s emerging cannabis industry has evolved at a rapid pace compared to other markets in recent months. As we previously reported, back in April 2022 Argentina’s Ministry of Health issued new rules pertaining to medical cannabis, allowing non-profits to eventually obtain licenses.

Roughly a month later Argentina passed a measure that created a framework for a more robust medical cannabis industry in the South American nation, including provisions for boosting exports around the world.

On the judicial front, Argentina’s Supreme Court rendered a decision in July 2022 that provides some legal protections for home cultivation by medical cannabis patients. Later in 2022, in October, Argentina issued the nation’s first domestic medical cannabis production license.

That same month Argentina’s government launched a public company to provide seeds, testing, and training to the emerging cannabis industry, and now Argentina’s government has created an agency to oversee the emerging industry and hopefully help it reach its full potential. Per InfoBae (translated to English):

In the context of the law sanctioned last May through which the regulatory framework is created to start an industrial process with the cannabis plant in Argentina, finally this Monday the national government created the Regulatory Agency for the Hemp Industry and the Medicinal Cannabis (ARICCAME), the state body whose main task will be to convert the letter of the law into management.

For now, the regulatory decree signed by Juan Manzur, Chief of Staff, and Sergio Tomás Massa, Minister of Economy, only announces the creation of ARICCAME and the appointment of its authorities. The first president in the history of the Agency will be the current mayor of the Buenos Aires city of Castelli, Francisco Echarren . The vice-president will be the doctor Marcelo Morante , historical activist of the cannabis cause, and in charge of the operation of the registry of medicinal users of the national Ministry of Health.

Argentina appears to have a keen eye on cannabis exports, with several comments surfacing in recent months from various leaders expressing a strong desire to make Argentina a top international supplier of medical cannabis products.

Only time will tell if that actually happens, with Argentina being somewhat late to the cannabis export party. The country deserves credit for proceeding in rapid fashion in recent months, however, several other countries are already exporting medical cannabis products around the world. As such, Argentina has some catching up to do.

Did Germany’s Government Create A Domestic Cannabis Monopoly?

Written by Hazel Norman on January 31, 2023. Posted in Business, Policy.

Medical cannabis policy in Germany is somewhat unique, in that the law permits for insurance reimbursements for medical cannabis products purchased from pharmacies. Germany is not the only country to have such a system in place, with Colombia serving as another example. However, many medical cannabis programs around the globe do not have a government reimbursement program.

Reimbursing patients for medical cannabis products, which Germany has done since 2017, helps increase safe access for suffering patients by lowering the financial barrier to acquire medicine. It also doubles as a subsidy for the jurisdiction’s emerging medical cannabis industry in that it ensures that a steady customer base is always present.

A lot of focus is directed at Germany’s medical cannabis price points, import statistics, domestic cannabis production statistics, and overall market size, which is understandable. Yet, often lost in the shuffle is Germany’s current licensing model, which is fairly nuanced. Due to treaties and the German government’s current approach, one specific type of subcontract license could prove to be particularly significant in the coming years as Germany transitions towards adult-use legalization.

Subcontracting Domestic Cannabis Storage

When Germany’s legal medical cannabis program launched in 2017 the entire program was built on cannabis imports from companies based outside of Germany, such as in Canada. Various companies applied for initial import licenses, with another major evolution occurring in 2018 with the start of the tender for domestic production.

The tender for domestic cannabis production involved production capacity limits that were not that large in the grand scheme of things. That, combined with the high cost of producing cannabis in Germany versus in other nations, has created a situation in which much of the legal medical cannabis supply in Germany still largely involves imports. Domestic licenses are not as valuable as some may have originally assumed, with one very noteworthy exception.

Due to international treaty provisions, countries allowing medical cannabis production are obligated to create an agency to buy domestic harvests in order to remain in compliance. The agency can’t simply buy the harvests ‘on paper’ in a somewhat symbolic fashion – they must buy it and physically take ownership of it. The United States (at the state level) is out of compliance with this provision, and apparently receives regular warning notifications because of it, although nothing seems to come of the continued non-compliance in the U.S.

Germany’s government, which seemingly takes treaties related to cannabis much more seriously, did task an agency with overseeing the nation’s domestic medical cannabis production. However, rather than Germany’s government storing the harvests itself, it subcontracted to one company, Cansativa. Being that it’s currently the only awarded license of its type, Germany has created a domestic monopoly of sorts, with every gram of domestic cannabis produced going through Cansativa, for a fee. As Germany continues its push to launch an adult-use industry, the subcontract license could cause potential issues.

A Domestic Adult-Use Cannabis Industry

As the dust settled on the 2021 federal election in Germany, the incoming governing coalition wasted no time in making it clear that it intended to pursue the launch of an adult-use legalization market. A long awaited legalization plan was presented to the federal cabinet in October 2022, and since that time Germany’s Health Minister has tried to make the case at the European Union that the plan should be allowed to proceed with the EU’s blessing.

A major component of the legalization plan that Germany’s Health Minister is lobbying for is that an eventual German adult-use market would rely solely on domestic production due to treaties. Whereas some treaties provide for legal medical cannabis activity to some degree as previously touched on in this article, adult-use cannabis is different. By relying solely on domestically produced cannabis to supply its adult-use market Germany would, in theory, be in compliance with the international agreements that it signed on to.

That, of course, begs the question, ‘will Cansativa keep its monopoly status, with all adult-use cannabis harvests going through its hands?’ When Germany launches its adult-use market it will instantly become the largest national adult-use market on earth. How will the nation proceed when it comes to domestic adult-use cannabis storage? Will Germany issue more subcontractor licenses? Regardless of if that happens or not, one thing is for sure – Cansativa will retain its monopoly on the medical side for the first five years, and with many medical producers also likely to start producing cannabis for the adult-use market, Cansativa will be able to leverage their network considerably.

Avoiding Cannabis Industry Monopolies

It is worth mentioning that Cansativa also has an import license, and that there have been no reported issues related to its domestic license so far. With that being said, monopolies should always be avoided in the cannabis industry to help boost competition in an effort to keep costs down.

Every penny that gets added to the final price of a cannabis product makes unregulated options more appealing. Many consumers and patients are willing to pay a bit extra for legal cannabis due to convenience and other factors, however, there’s a limit. At some point if the price gets too high, they will look for other options. If Cansativa continues its monopoly post-legalization, and hypothetically decides to raise its fees, it would affect every legal adult-use gram in the entire country. No one company should ever have that level of potential influence over an entire country’s emerging industry.

This dynamic will be particularly applicable to adult-use cannabis if/when it launches in Germany, as there will be no government reimbursement program for recreational products. Germany’s government is hinging much of its argument in support of legalization on a legal market being able to supplant the unregulated market, boosting the consumption of safer products in the process. Obviously, that will only happen if legal prices are competitive, and any monopolies in Germany put the possibility of competitive pricing in jeopardy.

Medical Cannabis Reform In Japan Is A Two-Edged Sword

Written by Hazel Norman on January 29, 2023. Posted in Policy.

Japan’s government appears to be set to adopt a limited medical cannabis legalization measure. A health ministry panel in Japan previously issued cannabis policy recommendations, including a recommendation that Japan allow medical cannabis products to be imported. Those recommendations are reportedly on their way to becoming law.

Generally speaking, allowing medical cannabis product imports is a good thing, however, cannabis observers and advocates around the world need to temper their celebrations, as the measure being considered in Japan is very limited upon further inspection, and part of the measure is particularly troubling.

In addition to legalizing products ‘whose safety and efficacy were confirmed under laws governing pharmaceuticals and medical devices’ be allowed for importing, the measure also requires that Japan make cannabis consumption itself a crime if it’s not for authorized medical purposes. Per The Japan News:

The government is poised to allow the use of medical marijuana to treat patients with intractable diseases, according to the outline of bills revealed on Tuesday.

The government is considering submitting the bills including one to revise the Cannabis Control Law during the current Diet session.

The proposed revision would also criminalize the use of marijuana.

Currently, there is no prohibition in Japan for cannabis use, although cultivation, possession, and distribution are strictly prohibited. If the new law is adopted, which it seems like it will be based on reports out of Japan, then simply having cannabis in a person’s system will be a crime.

How do authorities discover that someone has cannabinoids in their system in the first place? In many instances, it will likely be coupled with a possession charge, with law enforcement seeing the person consuming and catching them in the act.

Yet, there’s always the potential that law enforcement merely ‘suspects’ that a person has consumed cannabis, and uses that ‘suspicion’ as ‘justification’ to acquire bodily fluids for testing by whatever invasive means they deem to be useful. It’s an enforcement practice that can easily be weaponized and should never be implemented by any government anywhere.

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France Council Proposes Cannabis Legalization To Boost Public Health

Written by Johnny Green on January 28, 2023. Posted in Policy.

France is one of the most popular places for cannabis consumption on the entire planet, which may shock some people given the fact that France’s public cannabis policies are not as favorable as policies in many other countries, including countries in Europe. However, France has one of the highest cannabis consumption rates on earth. Per data from 2020, 46% of adults in France have tried cannabis at least once, with 11% consuming cannabis annually. Cannabis remains illegal in France with very few exceptions, and the consumption of unregulated cannabis products is a public health concern according to the nation’s Economic, Social and Environmental Council. That public health concern is why they are now recommending that France legalize cannabis for adult use.

The Economic, Social and Environmental Council is chaired by Jean-François Naton, CGT confederal adviser, and its recommendation to pass an adult-use legalization measure comes after a year of the entity conducting research. The research reportedly involved extensive interviews, including in the southern region of France where unregulated cannabis activity seems to be particularly popular. The Council’s recommendation is not legally binding, however, it does make a very compelling argument for legalization, and the theme of the argument seems to be part of a growing trend on the continent.

Ending Prohibition For Public Health Reasons

A very interesting public policy evolution is underway on the European continent, whether many people realize it or not. For several decades prohibition was ‘justified’ by its supporters via arguments that ‘cannabis use was bad for public health.’ The whole reefer madness movement that yielded cannabis prohibition was largely predicated on claims that ‘cannabis use harmed mental health, made people lazy, and caused people to exhibit extreme behavior and poor decision-making.’

Of course, all of those reefer madness talking points have since proven to be false and/or overblown, and according to the arguments currently being made by a growing number of public health leaders in Europe, it’s cannabis prohibition that is the true danger to public health for various reasons. For example, one of the main arguments being made by the Council in France is that a regulated industry would help prevent sales to minors since part of the Council’s proposal is to prohibit such sales, in addition to banning cannabis advertising.

Some cannabis opponents have scoffed at the claim that a regulated industry would reduce youth consumption rates, with those same opponents often trying to simultaneously make the claim that legalization would create a doomsday scenario for youth consumption. Unfortunately for those opponents, there is now data from legal jurisdictions that demonstrates what actually happens to youth consumption in a regulated system.

Per government data from the Oregon Health Authority (USA), not only was there no spike in youth consumption following the launch of legal adult-use sales and outright possession legalization in 2015; youth consumption rates actually went down from 2012 to 2018 in Oregon. A broader study conducted by researchers at Michigan State University, which involved consumption survey data from over 800,000 respondents in U.S. states where cannabis sales were permitted, also found no spike in youth cannabis usage rates. A study in 2021 conducted by researchers in Canada found ‘no significant differences’ in cannabis consumption rates before and after cannabis legalization in Canada. As of May 2022, data out of Uruguay also demonstrated no sustained changes in youth consumption rates post-legalization.

‘The German Model’

Days ago a report surfaced regarding the ongoing legalization effort in Germany, with possible movement occurring in the next two months. According to the report, Germany’s Health Minister Karl Lauterbach believes that a formal introduction of an adult-use legalization measure will happen ‘in the first quarter of 2023’ and that he ‘has no reason to doubt this schedule.’ If that timeline proves to be accurate, 2023 could be a very big year for cannabis reform in Europe.

At the heart of the Health Minister’s plan for legalization in Germany is a ‘legalization to improve public health’ strategy. Much like what is being recommended in France, the Minister is making the case that a regulated cannabis industry is better for overall public health compared to cannabis prohibition. That argument could prove to be effective at both winning the approval of the public as well as the approval of the European Union. It’s worth noting that if the European Union gives its approval to Germany, that is not to say that the European Union is pro-legalization per se, but rather, that the European Union is not going to stand in the way of legalization proceeding in Germany.

The reasoning behind the EU refraining from stepping in would be that while treaty provisions limit adult-use cannabis commerce, other provisions also permit individual nations to pursue public health strategies that make sense for the particular nation. By framing legalization as a public health matter versus an economic one, as Germany is currently doing, it could put countries on a stronger legal foundation if/when they pursue legalization. Germany could quite possibly be building the blueprint for modern national adult-use legalization in Europe, and France is one of the many countries that could benefit from copying such a model.

Germany Health Minister Karl Lauterbach Germany Health Minister Karl Lauterbach

Report: German Health Minister Confirms Timetable For Cannabis Legalization

Written by Johnny Green on January 26, 2023. Posted in Policy.

Over the weekend a potentially significant report surfaced regarding cannabis legalization in Germany. To quickly recap how we got to where we are now, Germany’s Health Minister Karl Lauterbach presented an adult-use legalization plan to the federal cabinet back in October. Since that time, Lauterbach has lobbied the European Union for its permission to proceed with formally introducing the plan for consideration by German lawmakers. According to the report, Lauterbach is ‘certain’ that the European Union will grant its approval and that a formal introduction of the legalization measure will occur ‘in the first quarter of this year.’ Minister Lauterbach added, according to the report, that he ‘has no reason to doubt this schedule.’

Given that the better part of January 2023 is already in the history books, that means that if Minster Lauterbach’s schedule indeed proves to be accurate then Germany’s lawmakers could be considering a national adult-use legalization measure by the end of March (or sooner). Looking at it from a perspective beyond Germany’s borders, if Lauterbach is going to proceed with a formal introduction of a legalization measure with the EU’s blessing, then that logically means that other nations will presumably be able to do the same. If so, we could see the opening of the European legalization floodgates with other nations copying Germany’s model.

What Will Be Legalized In Germany?

The plan that Minister Lauterbach presented to the federal cabinet in Germany back in October was not the first version of the plan. In the days leading up to the formal presentation a reported previous version was leaked, and due to various provisions contained in the leaked plan, public outcry was swift. The outcry was largely directed at the initial possession limit (20 grams), an age-tiered THC percentage cap (10-15% depending on age), and the initial cultivation limit (2 plants).

What was ultimately presented to the federal cabinet involved somewhat vague language, in that the possession limit was raised to ’20-30 grams’ and that there would be ‘further examination’ as to whether there would at least be THC percentage caps for consumers 18-20 years old. The home cultivation limit was raised in the federal cabinet presentation compared to the leaked version of the plan, from 2 plants up to 3 plants per adult household.

One of the most significant components of the plan presented to the federal cabinet was the intention to launch a legal national adult-use cannabis industry in Germany. Right now, the only country that permits sales of non-THC capped cannabis products nationwide to anyone of legal age, including nonresidents, is Canada. Uruguay allows sales to residents, and Malta is in the process of setting up regulated non-profit clubs. No other country permits legal sales of non-THC capped cannabis products nationwide, and given how much larger Germany’s population, economy, and level of tourism is compared to Canada’s, the launch of a regulated national adult-use market in Germany will be a very big deal.

Limitations Of Germany’s Model

Germany’s legalization model is not perfect for various reasons, not the least of which is that it is yet to be approved, codified, and implemented. After all, politics can be full of twists and turns, and until a legalization measure becomes the law of the land in Germany there’s always the possibility that provisions could be changed and/or that the process itself could stall. We have already witnessed Lauterbach’s legalization plan evolve, and technically he has yet to reveal what, if any, changes were made as part of gaining approval from the European Union.

Part of the report that surfaced over the weekend described Minister Lauterbach as planning to present a ‘very good solution’ for German lawmakers to consider. Obviously, that is not the same as saying outright that the European Union didn’t demand any changes to Germany’s previously presented approach. If the changes are seen as regressive to some lawmakers in Germany, it’s virtually guaranteed that there will be pushback.

One huge limitation that seems to already be agreed upon by Minister Lauterbach and the EU is that all cannabis for Germany’s eventual adult-use market has to be produced domestically in order for Germany to be in compliance with treaties. While we will all have to wait and see how it plays out, I am of the opinion that supply shortages are going to be common due to this limitation. I have no doubt that German cultivators will do their best to produce as much cannabis as legally possible, however, they won’t just be supplying Germany. People from all over the world are going to flock to Germany to partake in the new freedoms. How great the demand for legal cannabis will be in Germany once sales are permitted is tough to say, but I think it’s a safe bet that it’s going to be enormous, and that may create issues.