Skip to main content

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

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

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

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

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

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

***

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

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

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

 

Keeping Up with Canada? California Moves Towards State Cannabis Banking.

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

As most folks know by now, a lack of banking services have forced cannabis businesses, including those legal under state law, to deal predominantly in cash due to continued U.S. banking laws that make it nearly impossible to do business with federally chartered financial institutions. There are a few reasons why Canada, the first G7 nation to end cannabis prohibition, gives a leg up to its cannabis entrepreneurs, and normal access to banking services is one of them. Thankfully, the California Senate has moved forward with some sensible legislation that can help its state-regulated businesses and should add pressure on Congress to recognize the will of the people and legalize banking for state-licensed cannabis businesses. CNBC reports:

Under the state legislation, which was approved by a vote of 35 to 1, private banks or credit unions can apply for a limited-purpose state charter so they can provide depository services to licensed cannabis businesses. The measure, Senate Bill 51, still requires approval of the Assembly and California Gov. Gavin Newsom to become law.

***

“It’s hard to imagine an industry that at this point is as large as, like, craft beer that does not have banking as we have come to know it,” said Steve Hawkins, executive director of the Marijuana Policy Project, a national marijuana reform organization. He said the legal marijuana industry lacks access to commercial banking services available to other industries, including payroll, loans and deposit needs.

“As policymakers, we have a duty to further the will of the voters while protecting the public safety of our constituents,” California Senate Majority Leader Robert Hertzberg said last month when introducing SB 51. “This measure is by no means the ultimate solution, but it’s just one small step in the right direction to get some of this money off the streets and into bank accounts.”

Hopefully, this sensible banking legislation will have smooth sailing through the California General Assembly. Governor Newsom, who spoke at an International Cannabis Business Conference reception a few years ago, is certainly expected to sign the bill that should be supported by everyone, including those that oppose legalization as forcing cannabis businesses to use only cash encourages tax evasion and endangers our neighborhoods.

To stay up-to-date on the latest cannabis industry news, and to network with top investors and entrepreneurs, the International Cannabis Business Conference is THE event for you. Next up: Vancouver, Canada, in September and then back to San Francisco, California, next February. Get your early-bird tickets and save!

jupiter jupiter jupiter jupiter jupiter jupiter jupiter jupiter jupiter jupiter

Former US Senate Majority Leader Joins International Cannabis Board

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

As the cannabis legalization movement moves more mainstream, and the industry become more profitable, we shouldn’t be surprised to see former policymakers and elected officials join the business sector. Former Republican Speaker of the House John Boehner has been the most prominent American politician to enter the industry while Vicente Fox, the former president of Mexico, remains the most high-profile global politico. Boehner now has company as former United States Senate Majority Leader Tom Daschle, a South Dakota Democrat, has joined the board of an international cannabis investment firm, along with former representative Joseph Crowley, fresh off of his primary loss to rising Democratic star Alexandria Ocasio-Cortez, as The Hill reports:

Former Rep. Joseph Crowley (D-N.Y.) and former Senate Majority Leader Tom Daschle (D-S.D.) have been named to the advisory board of Northern Swan Holdings, an investment firm.

Northern Swan is focused on investments in the cannabis industry internationally and on positive change to the industry overall. It is based in Colombia.

***

“Senator Daschle is a pre-eminent expert in health and wellness whose experience in healthcare policy reform will be invaluable to our company’s expansion in the global medical cannabis market,” Kyle Detwiler, CEO of Northern Swan, told Yahoo.

On one hand, is is very promising for the cause that former politicians are joining the industry as this will only help end cannabis prohibition sooner. However, since these former officials are representing specific businesses, is it understandable to assume that they represent the interests of those that pay him and not the industry at large, thus we have to work hard to ensure that the new laws passed don’t set up monopolies and oligopolies that cut out competition, hurting consumers, patients, and small businesses.

As Marijuana Moment’s Tom Angell notes, these politicians may not have the best record of helping the cannabis community when they were in positions of power to do so, unlike folks like Dana Rohrabacher and Earl Blumenauer who have been leaders on the issue (and have spoken at International Cannabis Business Conference events):

While we probably don’t want to discourage former officials from lobbying their friends in power to end cannabis prohibition, we will certainly need to remain vigilant that fair policies (or as fair as possible) are being enacted in the future. In the meantime, it is great to see that legalization is moving forward step by step.

To learn the latest and network with top investors and entrepreneurs from around the world, the International Cannabis Business Conference is THE industry B2B event to attend. Next up: Vancouver, Canada, this September 15-16. Get your early-bird tickets by August 21st to save. 

Former Congressman Dana Rohrabacher on Reagan, Trump, and Cannabis

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

The best chance of the United States has of legalizing cannabis in the near future is passing the STATES Act that would end federal interference with state’s legalization laws as Donald Trump has signaled his support for the measure. Former Representative Dana Rohrabacher has stated his belief that Trump agrees with a states’ rights legalization approach, but that he could learn a few tips about uniting voters from Ronald Reagan.

Rohrabacher, who famously led the charge to protect states’ medical cannabis laws from being trampled by Uncle Sam, has taken his message international, keynoting the International Cannabis Business Conference in Zurich. Following our conference in Zurich, the Orange County, California, Republican sat down with Blick, one of Switzerland’s biggest daily newspapers, discussing his past work with Ronald Reagan, Donald Trump, and cannabis:

While Federal President Ueli Maurer (68) was in the USA, there was a high visit from the USA yesterday in Zurich. California Republican Dana Rohrabacher, 71, was a special assistant to US President Ronald Reagan (1911-2004) and a 30-year congressman. Until he was ousted by a Democrat last year.

The conservative Rohrabacher, who has German and English roots, is touring around the world to campaign for the legalization of cannabis – especially in the medical field. So he was yesterday guest speaker at the International Cannabis Business Conference at the Hotel Atlantis. He explains to BLICK: “Every adult should be able to decide for himself what is good for him. In addition, we can use it to eliminate the business of criminals. “He himself had consumed marijuana as a 23-year-old. ”But only a short time, since then I do not take it anymore.”

***

Trump could learn a lot from his old boss, says Rohrabacher. ”Reagan was able to achieve important goals and keep the people together. Trump also gets to his destination, but at the expense of the people’s unity. “Or, as Rohrabacher puts it,” Trump flies, Reagan shook hands. “

Not that long ago, Dana Rohrabacher was virtually all alone among his Republican colleagues regarding cannabis policy. Now that legalization has majority support among voters, across the political spectrum, positive changes are on the horizon. We can expect U.S. cannabis prohibition to end within the next few years, a policy shift that will certainly reverberate around the world, and Rohrabacher was a pioneer that deserves his share of credit.

The International Cannabis Business Conference returns to Vancouver, British Columbia, Canada, this September 15-16. Get your early-bird tickets to secure your spot and save your hard-earned dollars. 

International Cannabis Business Conference Zurich 2019 In Pictures!

Written by Anthony Johnson on . Posted in Business, international cannabis business conference zurich, Politics.

The International Cannabis Business Conference made its first venture into Switzerland last week, with a conference in Zurich, and the event was a raging success. A sincere thanks to all of our speakers, attendees, sponsors and CannaTrade, Europe’s oldest hemp fair, for partnering with us. We are already looking forward to returning to Switzerland next year! After an amazing European trek that included Barcelona (in a team-up with the legendary Spannabis conference) and a bigger-than-ever Berlin conference, the International Cannabis Business Conference is looking forward to returning to North America as we next head to Vancouver, British Columbia, Canada, in September to check up on the first G7 nation to legalize cannabis.

It was very exciting to see how Switzerland has advanced, becoming a leader in low-THC, high-CBD products of all types. The future of the cannabis industry in Switzerland is certainly bright as the innovative nation is clearly on the path to continue being a leader of the booming CBD market, with full legalization coming in the near future. From the point that the VIP reception started, the beautiful Atlantis hotel was buzzing with excitement.

Former United States Congressman Dana Rohrabacher set the tone of the conference, explaining his past, present, and future with the cannabis scene, from his days as a vagabond surfer to pioneering politician, to now taking his message of freedom global. Following Rohrbacher were panels and presentations that touched on important topics for Swiss industry participants and international actors alike, including the Trajectory of the Swiss Market, CBD in Switzerland, Cannabis Extracts, International Investing, and much more. The networking continued with another great Bhang-sponsored after party and into CannaTrade following the International Cannabis Business Conference.

As usual, one blog can’t do an International Cannabis Business Conference event justice, but here are some key highlights captured from our VIP reception, conference, and after party. Hope you enjoy these photos, and that we see you in Vancouver (September 15-16).

An eclectic group from all facets of the cannabis industry make connections at the VIP reception.
The Atlantis Hotel provided a great venue with interesting views.

Founder & CEO Alex Rogers speaking with former US Congressman Dana Rohrabacher, and Cloud 9’s Francis Scanlon .
Alex Rogers welcomed the attendees, describing his inspiration for bringing the International Cannabis Business Conference to Switzerland.

 

An attentive audience packed the conference room to hear from Dana Rohrabacher.
Switzerland is a leader in CBD and the conference featured a panel with top experts in the industry.
Of course, the International Regulatory Overview panel with esteemed industry lawyers was extremely popular and informative.
The expo area was bustling and proved to be fertile grounds to interact with potential customers and partners.

International Investing, presented by C3 CEO Nic Easley is always and interesting and engaging topic.
Cannabis Extracts, a growing market, was a very popular topic.
The after party, featuring DJ Leeroy, sponsored by Bhang was, well, banging.

Alex Rogers with DJ Leeroy, best known for his time with The Prodigy.

Will Switzerland Soon Start Exporting Cannabis Into Germany and the EU?

Written by ICBC Staff on . Posted in Business, international cannabis business conference zurich, Politics.

With the news that both the first German bid has concluded and that Macedonia seems poised to import cannabis into the European Union, there has been increased interest in who can import cannabis into Germany, if not the EU and beyond.

Could Switzerland become a major source of cannabinoid medications in Europe? The International Cannabis Business Conference in Zurich will have the latest on these rapid developments across the European continent as experts converge to discuss the latest and network to help move the industry forward.

To fully know the answer about Swiss imports, we must unravel the myriad of rules, regulations and trade agreements that entangle governmental entities across global borders. According to the European Medicines Agency, Mutual Recognition of Good Manufacturing Process (GMP) agreements now exist with Australia, Canada, Israel, Japan, New Zealand, Switzerland and of course the United States.

MRAs allow EU authorities and their counterparts to rely on each other’s GMP inspection system, share information on inspections and quality defects and waive batch testing of products that are imported.

In essence, MRAs are trade agreements that try to set equivalency standards between countries designed to facilitate the trade in pharmaceuticals across borders.

The European Commission is responsible for the negotiation of MRAS with countries on behalf of the EU. The European Medications Agency (EMA) is responsible for operational activities once the MRAs are in place.

And obviously, as cannabis enters the legal pharmaceutical space, this is fair game.

It is also clear that the discussions on the cannabis front, including the long delay in the German bid and the first tender lawsuit were caught up in larger international discussions about not only CETA (the trade agreement between the EU and Canada that was being negotiated during this process), but other geopolitical issues as well.

For instance, the ban of Israeli cannabis exports extended until Christmas of 2018 thanks to political posturing between the United States and Israel. The first market (of course) that the Israelis plan to target is Germany, followed closely, by the United States.

It is also no accident that just as the German bid news is concluding, Canadian cannabis giant Canopy Growth has just announced major inroads into American cannabis production.

The German government has admitted that it cannot grow enough cannabis fast enough and is opening its borders to imports; will Switzerland become an exporter of cannabis, particularly medicinal cannabis, into Germany and the rest of the EU?

The answer is a pretty easy yes.

Switzerland is not technically part of the EU, even though it sits in the middle of the European continent. The country also has multiple trade agreements with the EU. It is also part of a smaller, regional trade agreement between so-called DACH countries (Germany, Switzerland and Austria).

Expect Swiss innovators to look to the German market as a logical export destination, with the benefit of not only being right next-door, but also speaking the same language. Switzerland’s cannabis history has flown under the radar for a while, but the future is looking bright for the Swiss industry, if the government steps up to seize the opportunities before it.

For an in-depth understanding of the strategic nature of the Swiss pharmaceutical market in relation to the larger European medical cannabis discussion, be sure to attend the International Cannabis Business Conference’s first event in Zurich on May 15-16. Discounted, early bird tickets are on sale through April 24th, so hurry to secure your spot and save!

CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD

Understanding the European CBD “Novel Foods” Regulations

Written by ICBC Staff on . Posted in Business, international cannabis business conference zurich, Politics.

Foreigners entering the European cannabis market are finding that the regulations here are much higher than they expected, if not well downright confusing. This is especially true as cannabis crosses over into both food and medicine as well as beauty and skin products.

One piece of regulation that is proving particularly thorny for CBD producers – in particular for those with edible products is something called “novel food” regulation.

But what is “novel food” legislation and how does it affect your CBD business in Europe?

For an insider’s look at the CBD-novel foods discussion and the cannabis industry in general, be sure to catch Dr. Francis Scanlon, founder of Cloud9, and a whole host of experts at the first International Cannabis Business Conference in Zurich Switzerland, May 15-16.

Definition of “Novel Food”

According to the European Commission, a novel food is one that has not “been consumed to a significant degree by humans in the EU before 15 May 1997, when the first Regulation on novel food came into force.”

A novel food can be a new kind of food, including a plant-based food or additive, a food produced using new technologies (so all e-liquid drinks will be subjected to this process beyond the CBD they contain), agricultural products from third countries or food derived from new processes” (such as UV treated food like bread, milk, mushrooms and yeast.)

Furthermore, such foods must be properly labelled and further not nutritionally “disadvantage” the consumer if used in place of another more commonly used substance.

It does not take much imagination to see how this would apply to all things cannabis, but how such regulation has been applied, and is likely to be applied in the future, is anything but easy. It has been tortured so far.

Battle Number 1 – CBD vs “Hemp”

On one hand, it should be a no-brainer to include all things CBD in foods that have been consumed in the EU since 1997. See all health food stores selling hemp. But not so fast! CBD itself can be derived from both hemp and cannabis plants bred for that purpose. Of the two, only the former is relatively safe to source right now in Europe for that very reason.

Battle Number 2 – Distillates and Extractions

However the discussion is not over there. Beyond the source plant, the process the CBD is extracted also counts. For that reason, hemp extracts, if made via a new process, can also be verboten.

That means that anything that contains the same destined for oral consumption could also be “illegal.” See the raids of Spanish police last summer on health food stores selling CBD cookies.

Battle Number 3 – Jurisdictional Differences and Labelling

The final and most difficult problem for CBD businesses to conquer is the problem that both cannabis itself and its components are considered legit or not depending on a jurisdictional by jurisdictional basis across Europe, until there is regional agreement on regulation about the entire plant.

In the meantime, custom, country-by-country labelling is an issue that producers will have to consider until such regulations are set at the EU level – and even then there will still be the polyglot of European languages to contend with after that.

Those who market cosmetics and other topically applied products might find they are in loophole territory in most countries, but even here it is better to be safe than sorry. For those in doubt, see Austria.

Don’t miss the opportunity to learn the latest and network with top investors and entrepreneurs at the upcoming International Cannabis Business Conference in Zurich. Get your tickets and save by purchasing discounted, early bird tickets by April 24th.

CannaTrade CannaTrade CannaTrade CannaTrade CannaTrade CannaTrade

Exclusive Interview with Ben Arn of CannaTrade, the International Cannabis Business Conference’s Partner in Zurich

Written by Anthony Johnson on . Posted in Business, Cultural, international cannabis business conference zurich, Politics.

Switzerland’s cannabis scene has flown somewhat under the radar internationally, but that is about to change. The innovative nation actually has rich cannabis culture. From the late 1990s until 2004, a “grey market” flourished as the cannabis community utilized a loophole in the federal narcotics law to engage in cannabis commerce. After the Swiss government closed the loophole, a new market emerged in 2016 when the country legalized the cultivation and sale of cannabis that contained no more than 1% THC as a tobacco substitute.

Swiss cannabis flowers and other products are now cultivated, processed, and sold by more than 600 companies, who export all over the world. Switzerland also has a limited medical program and is making some political strides toward full legalization. Someone that is at the forefront of all things Swiss cannabis related is Ben Arn, CEO of CannaTrade, Europe’s oldest hemp trade fair. The International Cannabis Business Conference is teaming up with CannaTrade as the International Cannabis Business Conference in Zurich will be held from May 15-16, with CannaTrade’s organizing its festivities from the 17th through the 19th. Ben found some time to answer a few questions for us:

Anthony Johnson, for International Cannabis Business Conference: How did CannaTrade first come about?

Ben Arn: CannaTrade was born out of the CannaSwissCup and the Swiss Hemp Days in 1999 and 2000. The first official edition with the name CannaTrade was in 2001 in Bern. It’s the oldest still existing cannabis trade show in Europe. And since beginning, it’s a b2b and b2c fair.
What are your feelings about the current status of Swiss cannabis/hemp laws?
Better than the last 10 years! Now we’re looking forward to get a simplified access for patients in the next 2 years and as well a new regulation for THC for everybody in the next 2-5 years. At the same time there is as well a lot to do concerning CBD and foodstuff, regarding the Novel Food laws like everywhere else in Europe. 
Do you have any ideas for how future cannabis laws should move forward in Switzerland? For instance, the highly regulatory model like Canada and Germany, or the more permissive situations occurring in Amsterdam, Barcelona, and what once existed in the “grey areas” in Switzerland? Do you view any nation as a model or should Switzerland form their own unique path?
I wish that Switzerland will form its own path adapted to the regulations of alcohol in Switzerland. But probably, Switzerland will go into the direction as Canada did. Hopefully there will be some place for homegrowers too – it’s what many people in Switzerland are asking for.  
Do you have any concerns about Switzerland falling behind other nations’ cannabis industry or are you confident that the Swiss will be able to catch up?
We are on a good position right now – but the politic has to move fast! I see many countries going on with cannabis as medicine way faster than we are doing actually. But fortunately the media is finally bringing the chance of a new cannabis law to the public discussions. It may be possible that we will be able to grow and export THC weed even faster as Swiss patients will get the simplified access to their medicine. 
What are your goals for this year’s CannaTrade?
We will break the 1000 business visitors number, we will have the nicest business lounge we ever did, we’re having a nice and interesting program for business- and private people, a great afterparty and we’re looking forward to welcome the International Cannabis Business Conference at our side on Thursday at the Atlantis and from Friday-Sunday at CannaTrade. So we’re looking forward to 4 great cannabis days in Zurich! 
What are some highlights for those in the industry?
As already mentioned the BusinessLounge powered by CarbonActive, as well the big Chillout-Area powered by hanfhof, and new – for the first time – the big b2b afterwork-apero on Friday, where all exhibitors and all business visitors are invited – so more than 2000 business people will celebrate 2 hours of b2b-apero and party-time together! 
Thanks so much, Ben!
See you in Zurich!
To learn more about CannaTrade, visit: www.CannaTrade.ch.
Ben Arn
Ben Arn, CEO of CannaTrade, partner for International Cannabis Business Conference Zurich.