Author: Hazel Norman

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The Top European Cannabis Companies In 2023

Written by Hazel Norman on May 10, 2023. Posted in Business.

Europe’s emerging legal cannabis industry is undergoing a significant evolution right now, which is guaranteed to last through at least the rest of this decade. Several countries are pursuing adult-use cannabis reform, most notably Germany, and the continent’s legalization model is starting to take shape.

Meanwhile, Europe’s medical cannabis industry continues to increase in size and scope, and products low in THC, or focused on other cannabinoids such as CBD, are gaining in popularity and availability. Various industry projections currently exist, however, it’s likely that many of them will prove to be too conservative by the time this decade is over.

The coming years in Europe will yield cannabis companies that will likely serve as titans of the continent’s emerging cannabis industry for decades to come. Below are the top companies to keep an eye on (in no particular order).

Weeco – Weeco is a European multi-country operator focusing on medical cannabis product development. The company produces pharmaceutical-grade medical cannabis products, conducts cannabis genetics research, and designs product dispensing technology.

Dentons – Dentons Law Firm is one of the leading firms on the entire planet, and while they represent clients from a variety of industries, they also have an area of practice that is dedicated to the emerging cannabis industry.

Canninteligence – CannIntelligence provides independent, in-depth regulatory and market data and intelligence for the global cannabis and cannabinoid sector.

SOMAÍ Pharmaceuticals – SOMAÍ Pharmaceuticals is a specialist biotechnology company delivering transformative treatments to meet the evolving healthcare needs of medical cannabis patients. The company creates novel treatments that truly engage the power of the cannabis plant to alleviate debilitating chronic conditions.

Fluence – Fluence creates lighting solutions for controlled environment commercial crop production, including cannabis production. Fluence applies the latest research in photobiology, evidence-based design, precise engineering, and advanced technology to foster a healthier and more sustainable cannabis industry.

Little Green Pharma – Little Green Pharma is one of the most recognizable medical cannabis brands in Europe (as well as Australia). The company delivers innovative solutions to world-class operations in both Denmark and Australia.

DEMECAN – DEMECAN is the only independent German company that is permitted to cultivate medicinal cannabis in Germany. The company’s production facility is near Dresden, and the focus of the facility is to ensure the consistently high quality of DEMECAN’s cannabis products.

Weiss Technik – Weiss Technik is a world market leader for environmental simulation systems and a leader in heat technology, climate technology, and pharmaceutical systems.

HAPA Pharm – HAPA Pharm is a German company that operates internationally with a focus on the development, production, and distribution of cannabinoid-containing products.

Cansativa Group – Cansativa is the central platform and partner of the German Cannabis Agency (BfArM). The company helps Germany’s government facilitate medical cannabis transactions.

Cannavigia – Cannavigia is Europe’s pioneer compliance software for businesses to trace, secure, and simplify transactions along the entire cannabis supply network. The company’s proprietary system provides transparency for individual processes, interlinked by modules for the cultivation, manufacturing, distribution, and marketing of goods made of cannabis.

Marry Jane CBD – Marry Jane CBD is a Switzerland-based retailer specializing in CBD products, including flowers, oils, tinctures, cosmetics, and sports gels.

BATHERA – BATHERA is a licensed wholesale medical cannabis company based in Germany. Since 2019, BATHERA has been committed to the responsible trade of medical cannabis for therapeutic purposes and only collaborates with high-quality indoor producers and specialized pharmacies.

Storz and Bickel – Storz and Bickel is the creator of the Volcano, which still ranks as one of the greatest cannabis consumption devices on earth despite being introduced to the world over two decades ago. Storz and Bickel’s products serve as the industry standard for cannabis consumption around the world.

Paradise Seeds – Paradise Seeds was founded by Luc Krol in 1994 in Amsterdam. More than 50 cups have been won by Paradise Seeds in several cannabis cups since 1999, as well as some honorable mentions, such as Plant of the Year 2003 for Sensi Star (High Times magazine).

Boveda – Boveda makes patented two-way humidity control pouches that preserve the rich flavors, delicious aromas, and potent effects of cannabis. The pouches can be stored along with cannabis flower to help extend the cannabis’ shelf life.

420 Pharma – 420 Pharma is a medical cannabis producer in Germany. The company produces its own cannabis brand “420” which includes both flower and full spectrum extracts.

Futurola – Since 1996, Futurola has served as Amsterdam’s leading brand for rolling papers and personal consumption equipment. The company sells products all over the globe, including rolling machines and various other consumption rolling accessories.

CannaMedical – Cannamedical is one of the leading independent licensed pharmaceutical wholesalers in the European Union, specializing in medical cannabis. The company also produces content and the ‘CannaAcademy.’

Huber – Huber is a leading supplier of high-precision temperature control solutions for cannabis research and industry. The company’s products ensure precise temperature control in laboratories and production facilities.

Plagron – Plagron is a reliable producer and global supplier of high-quality substrates, fertilizers, additives, and germination products for both personal and commercial cannabis gardens.

Bedrocan – Bedrocan produces five cannabis products or plant varieties for medicine development, patients, and clinical use. Each cannabis product is standardized according to pharmaceutical standards with a defined active ingredient composition. Every stage of the manufacturing process is GMP-certified (good manufacturing practice).

Tilray – Tilray is a global leader in cannabis research, cultivation, processing, and distribution. The company aspires to lead, legitimize, and define the future of the cannabis industry by building the world’s most trusted cannabis and hemp company. Tilray was the first GMP-certified medical cannabis producer to supply cannabis flower and extract products to tens of thousands of patients, physicians, pharmacies, hospitals, governments, and researchers on five continents.

Sanity Group – Sanity Group, founded in Berlin in 2018 by Finn Age Hänsel and Fabian Friede, includes Vayamed and AVAAY Medical (medicinal cannabis), Endosane Pharmaceuticals (finished pharmaceuticals), Belfry Medical (medical products and digital applications), VAAY (wellbeing) and This Place (natural cosmetics). Near Frankfurt am Main, Sanity Group also operates a production and processing facility for cannabis extracts.

Sensi Seeds – Sensi Seeds pioneered the cannabis seed industry in 1985. Today, the company is the world’s largest cannabis seedbank with over 500 varieties. These genetics and the brand name have become true classics in the cannabis community. Additionally, the Dutch government chose Sensi Seeds genetics to develop the medicinal cannabis supplied by pharmacies.

Canopy Growth – Canopy Growth Corporation is a world-leading diversified cannabis company. Canopy operates a collection of diverse brands and curated strain varieties, supports millions of square feet of indoor greenhouse production capacity, and has partnered with some of the leading names in the sector.

HOMEbox – HOMEbox is the first indoor greenhouse designed in Germany. For over 20 years, customers worldwide have trusted the market leader HOMEbox. With home cultivation legalization on the horizon in Germany, HOMEbox products will likely experience a big spike in demand in the coming years.

Hesi – Hesi is a thriving international company with a global reach including Europe, America, Asia, and South America. The company makes plant aids and soil additives that are mixed, filled, and packed in the company’s production facility in Kerkrade, the Netherlands.

HBI Europe – HBI Europe produces several popular cannabis consumption brands, including RAW, Elements, and Juicy Jay’s, as well as produces various types of scales.

Lux Light – For over 20 years Lux Light International has specialized in the development, production, and marketing of high-valued horticultural lighting solutions. The company product range concentrates on high-quality lamps, complete fixtures, ballasts, and LED modules for the qualitative and economical demands of cannabis cultivation.

Quality Services International (QSI) – QSI is an accredited laboratory with state-of-the-art laboratory equipment and experienced, continuously trained specialist staff. The company is certified to carry out GMP analysis of medical cannabis.

Pure Holding AG – Pure Holding AG is among the largest, fully vertically integrated cannabis companies in the European market. It covers the entire value chain of the cannabis industry with its 6 entities – Pure Production, DEOM, Puregene, Pure Pharma, Pure Europe GmbH, and Pure Europe Sàrl.

Canna – Canna produces nutrients and growing media for cannabis plants. The company was founded in the early 1990s, and all its products are scientifically tested before they are launched.

LUX 99 – LUX 99 provides express delivery of medical cannabis products throughout Germany. The 2^nd generation, family-owned company also has two pharmacy locations.

Cannovum Cannabis AG – Cannovum is a fully licensed medical cannabis company with the vision that every patient deserves the best therapy.

German Officials Circulate Draft Adult-Use Cannabis Legalization Bill

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

The push to legalize cannabis for adult use in Germany is far from a new thing. To some extent, activists inside and outside of Germany have fought to end prohibition in Germany since the start of prohibition. However, a major milestone in the nation’s legalization efforts came in mid-2021 when a new governing coalition was elected in Germany.

Members of the new coalition made it clear that they would be pursuing adult-use legalization, and since that time the world has waited on pins and needles waiting for any movement on the formal introduction of a measure.

In October 2022, Germany’s Health Minister Karl Lauterbach provided an update to the federal cabinet, followed by a press conference earlier this year providing yet another update. Both times Minister Lauterbach hinted at the future introduction of a measure, yet provided no specific dates.

At long last, it appears that Minister Lauterbach has finally introduced a measure, albeit a scaled-back version of what was initially touted back in 2021. According to domestic reporting, the draft measure was submitted and ‘has now been sent to the other ministries for inspection and examination.’

Draft laws are not made public at this juncture, however, if it’s what Minister Karl Lauterbach described in his press conference last month, then quite a few components of the legalization plan are already out there. What Lauterbach previously described involves what ultimately amounts to a three-pronged legalization strategy.

The first phase is legalization as it pertains to individual freedoms, including possession of up to 25 grams, cultivation of up to three plants, and the launch of noncommercial cannabis clubs. The second phase involves the launch of regional adult-use commerce pilot projects.

A third phase, which was not expressly stated as such in Minister Lauterbach’s recent press conference, involves Minister Lauterbach continuing to lobby the European Union to gain its permission for Germany to launch national sales to anyone of legal age.

While the lobbying effort is not officially recognized as a third phase by lawmakers in Germany, effectively, it serves as a third iron in the German legalization fire and will take longer to make into a reality compared to the other two.

For many months I have described Minister Lauterbach as being a political pinball and bouncing back and forth between the EU and Germany. The process is now moving forward domestically, albeit slowly, and that is an exciting thing to think about as Europe’s largest economy inches ever closer to legalization.

Legalization Efforts Receive A Boost In Finland

Written by Hazel Norman on May 1, 2023. Posted in Policy.

Back in October, an initiative was launched in Finland which seeks to legalize cannabis for adult use in the European country. Recently, the initiative crossed the 50,000 signatures mark and will now be considered by lawmakers. Below is an excerpt from the initiative’s text:

We propose to start drafting a law to reverse the illegality of cannabis and replace it with the following:

– The use, possession, subsistence farming, manufacture and sale of cannabis are allowed with age limits.

– Creating a regulatory system for the manufacture and sale of cannabis comparable to other substances, learning from the experience of states and states that have already legalized cannabis. The aim of the regulation is to minimise harm to individuals and society, in the same way as alcohol and tobacco legislation.

– Imposing a tax on cannabis to compensate for the harm it causes to society.

– Clearly define the distinction between intoxicating cannabis and non-intoxicating cannabis, i.e. hemp, so that hemp-growing farmers can operate in their field.

– the removal of entries on cannabis use, as well as criminal records and other similar entries resulting from minor cultivation and sales.

In line with legalization strategies ramping up in Germany and other European nations, the initiative in Finland relies on the logical argument that prohibition is more harmful to public health outcomes than regulation.

“This initiative provides a comprehensive justification for why Finland, too, should replace the Cannabis Prohibition Act with regulation. The regulation of intoxicants must be based on researched information. The Prohibition Act did not bring us a cannabis-free world. Regulation does not bring us a harm-free world of cannabis either, but it can minimise the harm and compensate for the costs.” the initiative states.

Currently, only Finland’s Green Party has publicly expressed support for cannabis legalization, with Green Party member Coel Thomas helping craft the legalization initiative that recently crossed the required signature threshold. Thomas appears to be tempering expectations regarding the initiative’s adoption in the near future while remaining hopeful for the longer term.

“It seems likely that we will have a right-wing conservative government coming in, but even under a centre-right or centre-left government, it’s not likely that we could advance legalisation. I don’t see how it could get a majority of votes,” Thomas explained according to Cannabis Health News. “However, we are starting a conversation in Finland right now, that in my opinion, will most likely lead to the legalisation and regulation of cannabis this decade.”

Recently, for the first time in Finland’s history, a majority of survey respondents (57%) indicated that they felt regular cannabis use was less harmful than binge drinking, as well as a majority of respondents (53%) indicated that they feel that personal cannabis activity should not be a crime.

Legalization Efforts In Guernsey ‘Not Likely To Get UK Royal Assent’

Written by Hazel Norman on April 20, 2023. Posted in Policy.

Guernsey may not be the first place that comes to mind when someone thinks about cannabis policy, however, the self-governing British Crown dependency is home to some ardent cannabis supporters. Guernsey is one of the Channel Islands in the English Channel near the French Coast.

Lawmakers in Guernsey agreed in 2022 to explore the idea of adult-use cannabis reform. Unfortunately, all laws passed by Guernsey’s government must also be approved by the United Kingdom’s Privy Council – a concept known as ‘royal assent.’ It appears that such approval is unlikely, at least at this time. Per excerpts from BBC:

Policy & Resources Committee member Deputy Bob Murray said several departments were examining the issue.

But he added any law was not likely to get UK royal assent “at the moment”.

He said: “One of the hurdles we’ve encountered as we have looked more deeply in cannabis legalisation is getting royal assent in the UK [passed by the King’s Privy Council, which, at the moment, appears very unlikely.”

There is recent precedent regarding cannabis policy, royal assent, and its use to prevent adult-use cannabis legalization pursuits. Bermuda, which is also a British Crown dependency and subject to the royal assent provision, was on a path to making significant cannabis policy reforms last year.

However, all of the progress hit a dead end when the Governor of Bermuda, who is appointed by the United Kingdom, effectively vetoed a cannabis reform measure previously passed by Bermuda lawmakers by refraining from granting royal assent. As with Bermuda, Guernsey should be able to set its own cannabis policies.

New Report Highlights Global Cannabis Industry Investing Trends In 2022

Written by Hazel Norman on April 20, 2023. Posted in Business.

A new data analysis report was recently published involving cannabis industry investing, merger, and acquisition trends from last year. The data analysis study was performed by New Frontier Data and sponsored by Viridian Capital Partners.

Last year was a banner year for the emerging international cannabis industry as a whole, although financial trends varied from market to market. Below are some of the key findings from the recently published data analysis report:

In 2021 virtually every sector of the industry received blockbuster investments, leading to over $12 billion in capital raises; a combination of economic headwinds and dampened expectations for federal action shrank North American capital raises to $4 billion in 2022.
The United States continued to attract the majority of investor capital in 2022, growing as a percentage of total capital raised, from 71.7% in 2021 to 80.6% in 2022.
The United States drove the majority of M&A activity in 2022, growing from 59% of M&A activity in 2021 to 68% in 2022.
Cultivation and retail remained the leading sectors for M&A activity at 57% in 2022; however, the cultivation/retail sector represented 70% of the activity in 2021.
The average size of equity raises decreased 44% from $22.17 million in 2021 to $12.40 million in 2022, whereas the average size of debt raises decreased from $45.72 million in 2021 to $21.48 million in 2022.

“Investors are in the process of recalibrating their strategies for the cannabis market. By bringing together two of the most-trusted cannabis industry data companies, we provided an unbiased view of the current opportunities and challenges,” said Gary Allen, New Frontier Data CEO, in a press release. “Simultaneously, the report offers a sobering view of the capital markets for cannabis business owners who must adjust their own expectations for outside investment to construct healthier businesses.”

“Capital investment and M&A activity in the cannabis industry has become more narrowly focused on those states, countries and operators that have proven management teams, business models, and corporate strategy. This report, buoyed by data from the Viridian Cannabis Deal Tracker, provides the insight and actionable data for investors, lenders and acquirers to make smart capital allocation decisions.” added Scott Greiper, President and Founder of Viridian Capital.

The emerging legal cannabis industry will continue to expand across the globe, with new reforms being pursued and/or implemented in 2023, and in some cases, new markets launching.

Additionally, many existing markets will continue to expand in size throughout the year, and it will be interesting to see how statistics from 2023 compare to 2022 once this calendar year is over and the relevant data is compiled and analyzed.

South Africa Is Seeking Public Input Regarding Cannabis Reform

Written by Hazel Norman on April 16, 2023. Posted in Policy.

In late 2018, South Africa’s Constitutional Court issued a historic ruling. In a case involving three cannabis consumers facing cannabis charges, South Africa’s top Court determined that cannabis prohibition “intrudes unjustifiably into their private spheres”.

“It will not be a criminal offence for an adult person to use or be in possession of cannabis in private for his or her personal consumption.” stated Deputy Chief Justice Raymond Zondo in the Court’s unanimous decision back in 2018.

Since that time, various lawmakers in South Africa have worked towards the goal of launching a legal, regulated adult-use industry. And while that has yet to happen, progress is being made, albeit slowly, with the latest example of that coming in the form of the South African government seeking public input about a new proposal. Per Business Tech:

The Portfolio Committee on Justice and Correctional Services has opened the proposed amendments to the Cannabis for Private Purposes Bill for public comments.

The National Assembly is now calling on interested stakeholders to write submissions on the proposed amendments by no later than Friday, 28 April 2023.

Ultimately, the proposed amendments seek to broaden the scope of the bill to include provisions relating to the commercialisation of hemp, the use of cannabis and its production.

The 2018 decision in South Africa has created a large ‘grey’ market that is popular with consumers, but completely unregulated. Similar court decisions were rendered in Mexico in late 2018 and in Italy in late 2019. Similar to South Africa, the grey markets are flourishing in both Mexico and Italy due to languishing regulatory efforts.

Lawmakers would be wise in all of those countries to pass and implement robust cannabis reform measures resulting in the legal cannabis industry being embraced rather than prohibited. All of those countries would benefit from job creation, boosts to local economies, and the public revenue generation that an embraced adult-use industry would yield.

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Canada’s Supreme Court Upholds Quebec Home Cannabis Cultivation Ban

Written by Hazel Norman on April 15, 2023. Posted in Policy.

Canada’s Supreme Court dealt a blow to cannabis advocates and would-be home cultivators in Quebec this week when it issued a ruling upholding Quebec’s home cultivation ban. According to federal law in Canada, adult households can cultivate up to 4 plants as part of a nationwide legalization measure that was passed in late 2018.

However, Quebec’s government instituted a home cultivation ban within its borders, and that ban was challenged via a case that initially started back in 2019 involving an adult consumer who directly challenged the home cultivation prohibition policy.

Under Quebec law, adult households can still be fined between $250 and $750 for home cultivation violations. According to Canada’s top Court, Quebec’s continued prohibition on home cultivation is constitutional, and the vote was unanimous. Per CBC:

Murray-Hall’s lawyer argued that Quebec’s ban on owning and cultivating plants for personal use is unconstitutional and contradicts the federal cannabis law enacted in 2018.

On Friday, the Supreme Court emphatically disagreed.

According to the ruling, the provincial law meshes well with the overall goals of the federal one, which include protecting the health and security of the public and steering users away from the black market.

Much of what is troubling, beyond the effect of the ruling itself, is the reasoning behind the Court’s decision.

“The Quebec legislature saw the possession and personal cultivation of cannabis not as a social evil to be suppressed, but rather as a practice that should be prohibited in order to steer consumers to a controlled source of supply,” the ruling stated.

“It is true that, in everyday language and even in the speeches of some parliamentarians, the creation of exceptions or exemptions under a scheme of criminal offences is often described as a ‘legalization effort,'” the ruling also stated. “However, this way of speaking is incorrect and falsely suggests that positive rights authorizing particular conduct have been granted to the public.”

Manitoba has also banned home cultivation, and being that this ruling comes from Canada’s top Court, the ruling applies nationwide. Hopefully other jurisdictions do not pile on via their own home cultivation prohibition policies. Furthermore, lawmakers in Canada need to step up and pass a measure that expressly provides for adult-use home cultivation nationwide so that local jurisdictions do not have that option.

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Argentina’s Government Participated In First Legal Hemp Harvests In Half A Century

Written by Hazel Norman on April 10, 2023. Posted in Business, Policy.

Starting in 2019, Argentina has made a big push to boost its domestic cannabis industry, particularly as it pertains to science and research. Back then, Argentina’s Ministry of Science and Technology signed an agreement with a local government, the National University, and other entities.

That was followed by a Presidential decree issued in 2020 which provided a way for medical cannabis patients to, in theory, sign up for a government program in order to be able to cultivate their own medicine.

In May 2022, lawmakers in Argentina passed a measure that created the framework for a more robust medical cannabis industry in the South American nation, including provisions for boosting exports around the world. Later in 2022, the government established a public company to provide seeds, testing, and training to the nation’s emerging medical cannabis industry.

Recently members of Argentina’s government participated in the nation’s first legal hemp harvests in half a century, marking another milestone for the nation. Per Hoy:

The Ministry of Agriculture, the National Agrifood Health and Quality Service (Senasa) and the National Seed Institute (Inase) participated in the first experimental harvests of industrial hemp on Argentine soil after 50 years, it was officially reported.

The cultivation practices are developed by the national company Industrial Hemp Solutions (IHS), within the possibilities offered by the new regulatory framework for medical cannabis and industrial hemp.

Late last year regulators in Argentina approved new cultivars for the nation’s industry, although it’s unclear what exact genetics were involved in the recent harvests. Hopefully harvests of hemp and non-hemp-categorized cannabis become more common in Argentina as time goes by.

New Greens Proposal Would Legalize Home Cultivation In Australia

Written by Hazel Norman on April 9, 2023. Posted in Policy.

In the fall of 2019, the Australian Capital Territory (ACT) became the first jurisdiction in Australia to legalize cannabis for adult use. The ACT measure permitted adults 18 years old or older within its jurisdiction to possess up to 50 grams of cannabis and cultivate up to two plants. The measure did not legalize cannabis sales.

The new public policy obviously did not extend to the entire nation, however, it was still a revolutionary measure in many ways. For adults that live in the ACT, the newly established freedoms were surely welcomed and many people are undoubtedly benefitting from them.

At least one political party in Australia is seeking to make cannabis legal for adult use nationwide, and with a home cultivation provision that is significantly greater than what is already in place in the ACT. Per Crikey:

Cannabis would be available to be bought and smoked at Amsterdam-style cafés or grown at home under a legalisation bill written by the Greens.

Adults would be allowed to grow up to six plants at home for private consumption, and there would be no upper weight limit for possession, according to the bill drafted by Senator David Shoebridge.

According to a poll conducted in May 2022, 55% of Australians support regulating cannabis like alcohol. Australia‘s Parliamentary Budget Office released a report earlier this year which estimated that legalizing cannabis for adult use and launching national adult-use sales would generate A$28 billion in tax revenue in the first decade.

Medical cannabis was legalized nationwide in Australia in 2016, however, suffering patients can only legally obtain medical cannabis products via a prescription from a licensed doctor. Home cultivation is prohibited, even for licensed patients, and the type of medical cannabis products available in Australia is limited.

Germany Expected To Introduce Long-Awaited Legalization Measure In Two Weeks

Written by Hazel Norman on April 4, 2023. Posted in Policy.

During a live stream episode of ‘4:20-Cannatalk!’ featuring German governing coalition members and drug policy spokespersons of the Social Democratic Party Dirk Heidenblut (SPD) and Carmen Wegge (SPD) on Instagram (April 3, 2023, at 8 p.m. CET), the lawmakers announced that a long-awaited adult-use legalization measure would be formally introduced ‘in two weeks.’

“It would be nice if the draft law would be presented on 20.4.2023.” said Carmen Wegge during the live stream (translated from German to English).

The measure will reportedly involve a two-faceted approach to adult-use legalization in Germany, with the first phase involving home cultivation, ‘noncommercial’ cannabis clubs, and the suspension of cannabis prohibition enforcement as it pertains to personal use, possession, and cultivation.

“The first part of the reform measure could come into force before the summer break of the Bundestag, as Wegge and Heidenblut are speculating. This would be an urgently needed relief for millions of consumers. What this 2-phase approach means for the commercial route and the numerous companies preparing for a free market model, remains to be seen,” said Kai Friedrich Niermann of law firm KFN+.

Nationwide adult-use sales, which is what many German lawmakers were pushing for, will have to wait until the second phase of the legalization effort can be pursued.

“For reasons of European law, comprehensive legalization is obviously not feasible in the short term. We are therefore supporting Federal Health Minister Karl Lauterbach and the Federal Government with practicable ones Steps towards legalization. From our point of view, these can be model projects, decriminalization and self-cultivation.” SPD leadership previously stated according to initial reporting by Legal Tribune Online.

The announcement of the pending formal introduction of the legalization measure comes after several months of Germany’s Health Minister Karl Lauterbach lobbying the European Union for permission to proceed.

The premise of Minister Lauterbach’s argument to the European Union is that Germany’s public health outcomes would be better if people were consuming regulated products versus unregulated products.

Many cannabis advocates inside and outside of Germany were hopeful that the European Union would sign off on the launch of a regulated national industry in Germany, however, it appears that will have to wait.

Despite having to wait longer for national sales, the significance of the first facet of Germany’s reported legalization measure cannot be overstated. Cannabis prohibition is a failed public policy in Germany, and its time that the nation took a more sensible approach.

According to a 2021 report from Heinrich Heine University Dusseldorf, “legalization leads to significant savings in criminal prosecution.” The report’s authors stated that Germany would save 1.05 billion euros annually by no longer enforcing cannabis prohibition, in addition to judiciary savings of 313 million euros per year.

“Banning cannabis is harmful and expensive, billions are wasted on pointless police operations. The money would be used much more effectively for education, prevention and help. It’s time for legalization!” said DHV Managing Director Georg Wurth at the time of the report’s publishing.

Cannabis commerce involving adult-use sales will not be entirely prohibited under the reported first phase of German legalization. Local pilot programs are expected to launch, like what is underway in Switzerland, albeit presumably on a much larger scale.

“This is the biggest cannabis news of the decade. Within 3 years, Germany will have the biggest federally regulated cannabis market in the world,” said Alex Rogers, founder, and CEO of the International Cannabis Business Conference.

When national sales eventually launch, Heinrich Heine University Dusseldorf estimates that 27,000 jobs will be created and that the total revenue generation to Germany’s public coffers will be roughly 4.7 billion euros per year.

The first facet of the reported pending legalization measure will involve a possession limit that may be as much as 50 grams per adult. The plant limit for home cultivation will likely end up being between 3-5 plants per adult household.

Gifting cannabis between adults will likely also be permitted according to the reported measure, with the legal age being set at 18 years old.

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Cannabis Legalization Clears Another Political Hurdle In Colombia

Written by Hazel Norman on April 3, 2023. Posted in Policy.

Colombia has served as ground zero for the Drug War in many ways over the course of multiple decades, largely due to the nation’s cocaine production. It is obviously no secret that Colombia has served as the world’s top source of cocaine for many years, with the United States being a particularly popular destination for the illegal substance.

The Drug War in Colombia has made things harder for the nation’s emerging legal cannabis industry for various reasons, not the least of which is the stigma that comes with trying to legalize a historically banned substance in a nation like Colombia, even though cannabis is obviously not cocaine.

Fortunately, a group of lawmakers in Colombia seems to be set on passing an adult-use legalization measure, and the legalization effort in Colombia is overcoming political hurdles as a result. The latest one occurred a handful of days ago, as initially reported by Marijuana Moment:

A bill to legalize marijuana in Colombia cleared another key hurdle on its path to enactment on Tuesday, advancing through a Chamber of Representatives committee that brings it more than halfway through the legislative process.

The legislation, which the Chamber and Senate reconciled to be identical in December after previously clearing each full body in differing forms, needs to go through eight total stops in the Colombian Congress over two consecutive years. Tuesday’s 26-6 vote by the First Committee of the Chamber marks the fifth stop, sending it to the floor for consideration before returning to the Senate for final votes.

The results of a poll released in September, conducted by Jaime Arteaga y Asociados in Colombia, found that:

91% of survey participants that have used cannabis-based products would recommend it to other people
37% of survey participants have frequented a store where medical and/or cosmetic cannabis products are sold
63% of Colombians believe that ‘sales taxes on cannabis products would improve social investment’

The survey results provided a lot of insight into not only the level of support for Colombia’s emerging cannabis industry but also insight into consumer trends. For instance, the survey found that nearly half of the survey participants (46%) that reported consuming cannabis reported using it in topical form.

If/when Colombia legalizes cannabis for adult use, it’s likely that the types of cannabis products that people use will expand significantly as entrepreneurs work to supply the evolving demand.

West Australian Parliamentary Report Recommends Cannabis Reform

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

Australia is one of the many countries where medical cannabis is technically legal, although, it’s also one of the many countries home to a restrictive medical cannabis program, which is unfortunate for suffering patients that live in Australia.

To make matters worse, intoxicated driving laws in Australia are such that most medical cannabis patients cannot legally operate a motor vehicle when completely sober due to having THC in their system. A new parliamentary report is recommending an overhaul of such cannabis policies. Per ABC News:

A West Australian parliamentary report has recommended the elimination of barriers to accessing medicinal cannabis, including letting people with a prescription drive a car while the drug is in their system.

The Select Committee on Cannabis and Hemp has made 16 recommendations to the state government, ranging from changing drug driving laws to doubling the amount doctors are allowed to prescribe to patients.

Legalise Cannabis Party member and committee chair Brain Walker said change was overdue and that WA Premier Mark McGowan should take action.

What Australia really needs to do is to legalize cannabis for adult use and launch regulated national sales, which is the only way to truly ensure safe access to cannabis for all adults that need it. According to a poll conducted in May 2022, 55% of Australians support regulating cannabis like alcohol.

Australia‘s Parliamentary Budget Office released a report earlier this year which estimated that legalizing cannabis for adult use and launching national adult-use sales would generate A$28 billion in tax revenue in the first decade.

Ireland Labour Leader Calls For Legal Cannabis Sales At Festivals

Written by Hazel Norman on April 1, 2023. Posted in Policy.

Social cannabis use reform is in many ways the next frontier for activism efforts around the globe. In many jurisdictions cannabis possession, cultivation, and distribution laws still need to be fixed to be sure.

However, in a growing number of jurisdictions social use reform is either being explored as part of larger reform efforts, or in places where cannabis is already legal for at least possession and use, social use reform is being sought to improve current public policies.

One country that is in need of a massive cannabis policy overhaul is Ireland. Cannabis is currently illegal for adult use in Ireland, and the nation’s medical cannabis program is very limited in size and scope compared to medical programs found in many other countries.

At least one lawmaker in Ireland is calling for reform beyond simple legalization. If Labour leader Ivana Bacik has their way, cannabis will be legally bought and sold at festivals in addition to other reform components. Per the Irish Examiner:

The licenced sale of cannabis at Electric Picnic and other music festivals should be permitted as part of a “rational” approach to drugs, Labour party leader Ivana Bacik has said.

Calling for a “harm reduction based policy” on drugs, Ms Bacik has said politicians need to accept the reality that cannabis is now widely consumed as a recreational drug.

“There’s a clear momentum internationally to adopt a more rational harm reduction based policy on drugs.

At this juncture in time, it’s very unlikely that Ivana Bacik’s calls for social use reform will be adopted. After all, the nation is having a hard enough time just reforming cannabis laws in such a way that it keeps cannabis consumers and patients out of Ireland’s criminal justice system.

Yet, Ivana Bacik’s recent comments have sparked a conversation in Ireland about what a comprehensive cannabis public policy would involve. The main rallying cry of cannabis advocates in Europe right now is to improve public health outcomes via regulated sales, and sales at festivals and other events definitely seem to fit within that strategy.

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Agreement Reached In Spain For Future Regulation Of ‘Cannabis Light’

Written by Hazel Norman on March 26, 2023. Posted in Business, Policy.

Spain is home to one of the most unique approaches to cannabis policy out of any nation on the planet. The nation has one of the most robust and vibrant cannabis communities on earth, yet the cannabis public policies in Spain are very outdated.

Anyone with internet access and the ability to use a popular online search engine can see that private cannabis clubs are located throughout Spain, with huge clumps of them being located in Barcelona in particular. Unfortunately, Spain’s laws and regulations are such that all of those clubs operate in a legal grey area versus being licensed and outright accepted.

Cannabis advocates inside and outside of Spain were hopeful that the start of 2023 would see a cannabis regulatory measure finally reach the finish line and get the nation’s laws to match reality, however, that has yet to materialize.

What has materialized is an agreement in Spain’s Congress to, eventually, regulate low-THC cannabis. Low-THC cannabis is often referred to as ‘cannabis light’ and is very popular in many European nations. Perhaps someday Spain will join those nations in regulating such products. Per Europa Press (translated to English):

The PSOE has agreed on an initiative in Congress with Unidas Podemos, Esquerra (ERC) and Bildu that opens the door to a future regulation of non-psychoactive cannabis, that whose percentage of tetrahydrocannabinol (THC), the euphoric drug, is less than 1% .

Unidas Podemos and the two pro-independence allies of the Government presented an initiative this Wednesday in the Congressional Agriculture Commission demanding the regulation of the production and commercialization of this crop in order to offer legal certainty to producers and marketers.

It will be interesting to see if 1) this type of reform actually gets adopted in the near future, and 2) if it will have any meaningful impact on Spain’s cannabis industry. To be clear – providing this type of reform to the nation’s emerging cannabis industry is helpful, although, exactly how helpful it would be is open for debate.

What Spain really needs is a comprehensive cannabis policy and regulatory overhaul. Cannabis products containing all types of THC percentages, including concentrates that contain large amounts of THC, are being consumed every day in Spain. It’s a reality that lawmakers and regulators ignore at a cost to public health.

Consumers and patients in Spain deserve safe access to tested cannabis. Entrepreneurs in Spain deserve to operate in a business landscape that affords them every reasonable opportunity to supply the nation’s demand in a way that boosts public health and generates revenue for public coffers.

Brazil Judge Allows NGO To Cultivate Medical Cannabis

Written by Hazel Norman on March 26, 2023. Posted in Policy.

The public policy avenue that most people are familiar with when it comes to legalization efforts is when lawmakers approve a reform measure in a particular jurisdiction. After all, people are elected or appointed to make laws, and legislative action is the most straightforward way to codify something into law.

However, there are other means by which public policy is changed, including public policies that pertain to cannabis. One such way is via a citizen initiative or referendum. Italy, for example, has this political process in which ordinary citizens can gather a certain number of signatures to force a vote on something.

Another avenue that many people don’t seem to always consider is the courts. Legal decisions handed down by courts also create laws, particularly when it’s a nation’s top court that has the final say and there are no further appeal options.

Brazil is a nation that seems to have quite a bit of cannabis policy being set by its courts, with a recent example of that coming via a case involving an NGO that wants to cultivate medical cannabis. Brazil’s industry is currently built around importing cannabis products, but thanks to a recent legal decision, that could be changing. Per excerpts from The Brazilian Report:

A federal judge in the northeastern state of Sergipe on Wednesday authorized an NGO to grow cannabis and manufacture medicinal products for its associates. Although similar authorizations have been granted in Brazil for producing cannabis oil, this is the first time such approval has included the plant’s flowers, extracts, and edible products.

Lawyer Paulo Henrique Thiessen, who represents the NGO Salvar, celbrated the decions as “wonderful news.”

Cannabis reform is sweeping the globe, particularly in South America. The continent is famously home to the world’s first legalized nation, Uruguay, which passed an adult-use legalization measure back in 2013.

Several South American countries have reformed their medical cannabis policies in recent years, with Brazil, the continent’s largest country, being much slower to pass and implement meaningful medical cannabis reform measures compared to its continental peers. Hopefully this recent legal decision will inspire lawmakers and regulators in Brazil to pick up the pace.

Prime Minister Trudeau: Time To “Catch Up” With The Cannabis Industry

Written by Hazel Norman on March 22, 2023. Posted in Business, Policy.

Canada remains the only country on earth where anyone of legal age can make a legal adult-use cannabis purchase regardless of residency status. The only country to legalize cannabis for adult use prior to Canada doing so in 2018 was Uruguay back in 2013.

Unlike in Canada, Uruguay limits adult-use sales to residents only. Malta is the only other country on the planet right now that has also passed an adult-use legalization measure, however, the only way to legally purchase cannabis in Malta will be via licensed non-profit cannabis clubs, and no licenses seem to have been issued thus far. Malta started accepting applications for clubs late last month.

Until legal sales to non-residents become a reality elsewhere, Canada will continue to be in a league of its own. Canada’s legalization model and related policies are obviously not perfect, although, they are still exponentially better than prohibition.

The industry has succeeded by many measures despite it operating on a playing field that is far from level compared to other legal industries of its size in Canada. Prime Minister Justin Trudeau made comments recently that suggest a leveling of the playing field may be on the horizon. Per excerpts from initial reporting by StratCann:

Prime Minister Justin Trudeau acknowledged the need for the government to “catch up” with the cannabis industry’s concerns around issues like high taxation in a recent public event.

In his response, Trudeau first brought up the government’s historical public-health focussed messaging around legaization, but noted that now that the legal system is established, the government has a need to take a look at ensuring those businesses who “stepped up” in this new industry can survive.

“Now that we’ve got the public health and safety stuff out of the way, or on the way, I think you’re absolutely right that we should absolutely take a much closer look at ‘okay, what do we do then to make sure that this is a beneficial industry?’

As we previously reported, the legal cannabis industry in Canada had created roughly 151,000 jobs as of February 2022. Additionally, the emerging legal cannabis industry is responsible for generating over $15 billion since legal adult-use sales launched in late 2018.

Deloitte estimates that the legal cannabis industry in Canada has contributed over $43.5 billion to the nation’s GDP since the start of legalization. Cannabis companies have directly invested roughly $4.4 billion into Canada’s economy, with the remaining boost to GDP coming from “indirect” economic contributions, and “induced” contributions according to Deloitte.

As impressive as those statistics are, they come from an era in which Canada’s cannabis industry faced needless hurdles, many of which are still in place today. Hopefully Prime Minster Trudeau puts actions behind his recent words and does everything in his power to help his nation’s emerging cannabis industry reach its full potential.

Calls For Cannabis Reform Are Picking Up Steam In Australia

Written by Hazel Norman on March 20, 2023. Posted in Policy.

Back in February, Australia‘s Parliamentary Budget Office (PBO) released a report that presented two options for legalizing adult-use cannabis in Australia. The first option involves the creation of a new entity, the Cannabis National Agency. The agency would be the sole wholesaler between producers and licensed retailers, and it would set wholesale prices and issue all licenses.

Under the first option, the legal age for adult-use cannabis would be 18. Additionally, adult households would be able to cultivate up to six plants, and legal sales via licensed retailers would be permitted for non-residents in addition to residents.

All licensed sales would be “subject to the Goods and Services Tax (GST) as well as a 25% excise duty on sales including the GST”. The second option that was part of the PBO report contains all of the previously mentioned provisions, with the exception of a lower excise rate (15%).

Several lawmakers in Australia are touting the recommendations of the report, including Greens Senator David Shoebridge. Per The Guardian:

Australia’s cannabis industry could be earning the black market $25bn a year and, rather than policing it, we could be gaining revenue from it by legalising it, Greens senator David Shoebridge has said.

“Law enforcement is spending billions of public dollars failing to police cannabis, and the opportunity here is to turn that all on its head by legalising it,” he said.

Shoebridge indicated that he intends to introduce a legalization bill that will be somewhat modeled on Canada’s adult-use cannabis policies. Canada became the second country to legalize cannabis for adult use in 2018, with Uruguay being the first in 2013.

Unlike Uruguay, which limits legal sales to residents only, Canada permits legal sales through various licensed channels to anyone of legal age, regardless of what country they are a resident of. As such, Canada is a top international cannabis tourism destination. With any luck, Australia will join them.

Cannabis Production Identified As A Top Investment Opportunity In Rwanda

Written by Hazel Norman on March 13, 2023. Posted in Business, Policy.

Rwanda’s economy ranks 171st on earth according to World Data, making it one of the poorest countries on the planet. Rwanda’s economy is still largely agrarian, with many citizens living in rural, undeveloped areas.

Years of conflict, particularly in the 1990s, ravaged the African nation and negatively impacted the already-dim economic prospects within its borders. Needless to say, any and all reasonable boosts to Rwanda’s economy are surely welcomed.

The emerging international cannabis industry is creating jobs, generating revenue for governments, and providing boosts to local economies at an ever-increasing rate around the globe as more and more countries reform their cannabis policies. If certain leaders in Rwanda have their way, their country will join the list of international cannabis industry leaders. Per The New Times:

Rwanda is looking to attract at least Rwf19 billion (about $17.5 million) investment in the production of cannabis, also known as a high-value therapeutic crop, The New Times has learnt.

The development was recently ranked among the country’s top 100 investment opportunities, during the Invest Rwanda Forum held last week.

According to the Rwanda Development Board (RDB), global cannabis production is projected to grow from the current $28.3 billion raked in 2021, to $197.7 billion in 2028 at a compound annual growth rate of 32 per cent.

Whether or not the projection offered up by the RDB proves to be accurate is anyone’s guess. And exactly to what extent the cannabis industry may help Rwanda’s economy specifically is unclear at this time, particularly since it involves many factors.

However, if Rwanda’s government and business community can develop its domestic cannabis industry, and especially if that industry can make meaningful inroads in the export market, amazing things could happen.

India Is Working To Legalize Industrial Medical Cannabis Cultivation

Written by Hazel Norman on March 5, 2023. Posted in Policy.

India has one of the oldest connections to cannabis out of any nation on earth, particularly for sacramental purposes. According to Psychology Today, “The earliest mention of cannabis has been found in The Vedas, or sacred Hindu texts. These writings may have been compiled as early as 2000 to 1400 B.C.”

A common form of cannabis in India is bhang, which is a drink infused with various levels and types of cannabis. Bhang is reportedly common in many parts of India, even though it is technically illegal.

According to section 20 of India’s Narcotic Drugs and Psychotropic Substances Act (1985), ‘the sale/purchase, transportation, interstate import/export or any other commercial activity of cannabis’ is a punishable offense.

Cannabis use is largely tolerated in India, although there are definitely instances of people receiving harsh punishments for simple possession. Medical cannabis use is legal to some degree, with the Centre telling the Delhi High Court in January 2022 that the use of cannabis is ‘not completely banned’ and that ‘medical and scientific use of cannabis is allowed under the law.’

Uttarakhand became the first state in India to allow commercial cultivation of hemp crops back in 2018, and in 2019 the Madhya Pradesh government followed suit. In February 2020 India permitted its first medical cannabis clinic to open in Bengaluru.

Yet, large-scale cultivation of medical cannabis nationwide has remained out of reach. That could be changing soon. Per The Tribune:

Chief Parliamentary Secretary (CPS) Sunder Singh Thakur said today that the state government was working to legalise the cultivation of cannabis for medicinal and industrial purposes. The government would formulate a policy for cannabis cultivation so that farmers could get additional income, he added.

He presided over the inaugural ceremony of the three-day training workshop of the Himalayan Forest Research Institute (HFRI), Shimla, at the Atal Bihari Vajpayee Institute of Mountaineering and Allied Sports, Manali.

How long it will take for such reforms to be fully implemented is unclear at this time. What is clear is that if India succeeds in its pursuits, it will move closer to taking its rightful spot as an international cannabis industry powerhouse.

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Uruguay’s Medical Cannabis Industry To Expand Via Authorization Of ‘Master Formulas’

Written by Hazel Norman on March 5, 2023. Posted in Business, Policy, Science.

Uruguay was the first country to ever pass and implement a national adult-use legalization measure. Lawmakers initially passed a legalization measure back in 2013, and regulated adult-use sales via pharmacies began in 2017.

Since that time Uruguay’s emerging legal adult-use industry has garnered significant international attention and generated considerable headlines, and rightfully so. After all, what Uruguay did and continues to do on the adult-use front is truly historic.

However, Uruguay’s cannabis industry and policy are not limited to just adult-use cannabis. Uruguay’s medical cannabis program, which receives far less attention, is set to undergo a fairly substantial expansion thanks to a recent authorization by the government. Per Montevideo (translated to English):

The government established through a decree the expansion of access routes to products made from medical cannabis, by regulating a procedure to be able to carry out treatments through master formulations prescribed by treating doctors and made in authorized pharmacies.

The decree enabled access to “master preparations based on cannabis extracts or standardized cannabinoids, from companies authorized by the Department of Medicines for the production of plant raw material with pharmacological activity.” “These master preparations may exclusively contain active principles derived from cannabis,” added the second article of the regulations.

This new authorization will hopefully help some of the most suffering patients in the South American nation, who historically have had to rely on less-sophisticated forms of medical cannabis. This is not to say that raw flower and rudimentary preparations are not sufficient, as those options can clearly help many people. Yet, for some suffering patients, they are not the best option.

Depending on a suffering patient’s condition(s), certain consumption methods are not as viable as others. Additionally, particular conditions and individual cases respond better to certain formulations for various reasons, so patients in Uruguay having more options to consider is a great thing from that perspective.

Report Estimates Global Legal Cannabis Sales To Reach $59.6 Billion By 2027

Written by Hazel Norman on February 24, 2023. Posted in Business.

These are truly exciting times for the emerging international cannabis industry. After decades of prohibition policies dominating the globe, more and more countries are getting on the right side of history and legalizing medical and/or adult-use cannabis to some degree.

In addition to preventing people’s lives from being needlessly ruined, cannabis reform is helping suffering patients and ushering in a new era for an industry that has long operated in the shadows.

Legal sales will continue to increase for the foreseeable future, as reflected by a new report from cannabis data company BDSA. Below is more information about the report via a news release:

LOUISVILLE, Colo., Feb. 22, 2023 (GLOBE NEWSWIRE) — BDSA, the leading provider of market intelligence for the cannabis industry, today released its updated five-year global legal cannabis market forecast. Global legal cannabis spending grew 4.8% to $32 billion in 2022 and forecasts a compound annual growth rate (CAGR) of 13.2% from 2022 to 2027, resulting in a market size of $59.6 billion by 2027. Despite economic uncertainty and rising inflation, BDSA expects legal U.S. cannabis sales to grow 14% by the end of 2023.

“Legal cannabis spending slowed significantly in 2022 due to rapid price declines across all markets,” said Roy Bingham, Co-Founder and CEO of BDSA. “Despite this, our updated forecast predicts strong growth in the U.S. driven by developing markets, particularly the adult-use markets of Missouri, New Jersey and New York. Additionally, four of the top five U.S. markets—Florida, Illinois, Massachusetts and Michigan—will increase by a combined 9.5% in 2023, adding nearly $770 million in new spending.”

While legal cannabis sales saw rapid growth during the height of the pandemic, 2022 marked the first overall spending contractions in many mature markets throughout the U.S., with the mature adult-use markets of California, Colorado, Nevada and Oregon suffering a combined spending decline of 16.5%. While BDSA expects to see a return to growth for most mature markets in 2024, mature markets in the U.S. are expected to grow slower during the forecast period. However, several newer markets accomplished a strong expansion in 2022, and growth in new and emerging markets is expected to ramp up in the coming years. New Jersey and Montana, which launched adult-use sales in 2022, saw approximately 140% growth last year, while Missouri grew by 84% in its second full year of medical-only sales.

By 2027, adult-use sales are forecasted to contribute 78% of the total global legal cannabis spend, up from 64% in 2022. U.S. legal cannabis spending is expected to grow at a CAGR of 11.3%, from $26.1 billion in 2022 to $44.5 billion in 2027, driven primarily by the New York, Florida, New Jersey and California markets. BDSA forecasts the launch of several new adult-use markets by 2027, including Maryland and Oklahoma in 2024 and Florida and Ohio in 2025. New adult-use markets in Hawaii and Minnesota are also possible. Although BDSA does not expect any comprehensive U.S. federal regulations on cannabis in this timeframe, there is a possibility of partial reform, such as cannabis banking, within the next few years.

Globally, cannabis markets beyond the U.S. and Canada are forecast to grow at a CAGR of 40% to $9.5 billion in 2027, up from $1.8 billion in 2022. BDSA forecasts the Canadian market will see 12% overall growth this year, becoming a $5.7 billion market by 2027 at a CAGR of 6.3%. New adult-use markets and Germany and Mexico are the primary drivers of global growth, and current limited medical cannabis programs are expected to expand, primarily within the European Union and Latin America.

BDSA will cover the new market forecast report in a webinar on March 7 at 11 a.m. MT. The free webinar will explore cannabis industry growth throughout 2022, what the industry will look like by 2027, and what factors are driving growth in the U.S. and beyond. To register, visit here.

About BDSA
Headquartered in Louisville, Colorado, BDSA helps businesses improve revenues, reduce innovation risk and prioritize market expansion with accurate and actionable cannabis market intelligence, consumer research and advisory services. The company provides a holistic understanding of the cannabis market by generating insights from point-of-sale data, wholesale data, consumer research and market forecasts. To learn more, please visit bdsa.com.

A Missed Opportunity In Spain

Written by Hazel Norman on February 22, 2023. Posted in Policy.

Yesterday was a potentially big day for cannabis policy reform in Spain, however, a bill that would have set up long-needed medical and adult-use regulations failed to pass in Parliament on Tuesday. For now, the status quo remains.

As we have reported several times in recent months, Spain’s emerging cannabis industry is in desperate need of reform in order to reach its full potential. Reform would, in turn, help consumers and patients across the country.

Unfortunately, that will not happen in the immediate future, although the fight to reform Spain’s cannabis laws is far from over. Still, yesterday’s vote was indeed unfortunate, with blame being warranted towards those that voted in support of prohibition. Per Noticias Sin (translated to English):

A comprehensive legalization of cannabis, both for therapeutic and recreational use , was rejected this Tuesday in the Spanish Parliament.

The socialist party PSOE, which is part of the coalition government in Spain with the left-wing formation United We Can, was one of those who voted against it , along with part of the right-wing opposition.

His partner in the Executive supported the initiative along with other leftist forces or formations such as the liberals of Ciudadanos, in their vote in the Congress or lower house of the Spanish Parliament.

Yesterday’s vote was definitely a missed opportunity, however, cannabis advocates will never give up. Hopefully certain reasonable tweaks can be made to proposed legislation in order to get it to the finish line.

Meanwhile, the unregulated market continues to thrive in Spain. Cannabis laws may not be as bad in Spain as they are in other countries, yet even lukewarm prohibition is still prohibition, and as long as people are being harmed by Spanish prohibition there will always be a need for reform.

Lawmakers In Spain To Debate Cannabis Regulation On Tuesday

Written by Hazel Norman on February 20, 2023. Posted in Business, Policy.

When it comes to cannabis reform efforts there are various speeds at which jurisdictions move, ranging from a rapid pace like we saw in Thailand in the last couple of years all the way to places like China where cannabis prohibition is clung to at all costs and they are seemingly somehow finding new ways to ramp up prohibition efforts.

Somewhere in between on the spectrum is Spain. As with many other things, Spain moves at its own pace when it comes to cannabis reform. Medical cannabis is legal in Spain, however, current licenses are geared towards research and exports.

Adult-use cannabis is quasi-legal in private settings in Spain, which has created a loophole of sorts that private cannabis clubs take advantage of. What Spain truly needs is domestic cannabis regulations to take away the uncertainty and help Spain’s emerging cannabis industry reach its full potential.

Fortunately, lawmakers in Spain are considering such reform, with a debate scheduled for tomorrow. The measure being considered would reportedly go beyond medical cannabis regulations. Per Infosalus (translated to English):

The Plenary of the Congress of Deputies will debate this Tuesday the Proposal for a Law of Esquerra Republicana (ERC) to regulate cannabis in an “integral” way, that is, both its therapeutic and recreational use.

One of the objectives of the Law, which ERC presented at a press conference in September 2021, is to “decriminalize” cannabis and consider it a medicine that can be accessed with a prescription.

In this way, the consumption of marijuana would be legalized in places where tobacco smoking is allowed, this would include the ability to consume cannabis outdoors and on private property.

The measure would permit for the cultivation of up to six plants within an adult residence, with a reported limit of ‘producing up to 480 grams per year.’ For context, one harvested plant cultivated using advanced techniques can yield more than 480 grams of dried cannabis flower.

Additionally, the measure would mandate that certain funds be earmarked for ‘resources to combat addiction’ and to ‘increase the awareness of the negative effects of cannabis.’ Hopefully people in Spain are already aware of the harms of prohibition, and continue to demand a more sensible approach to cannabis policy in Spain.

European Commission Refers Hungary To The Court Of Justice Over Cannabis Vote

Written by Hazel Norman on February 20, 2023. Posted in Policy.

Last week the European Commission announced that it referred Hungary to the Court of Justice of the European Union (CJEU) for voting against the European Union’s position on removing cannabis from Schedule IV of the Convention on Narcotic Drugs at a meeting back in December 2020. Below is more information about it via a news release from the European Commission:

Today, the European Commission decided to refer Hungary to the Court of Justice of the European Union for f voting against the position of the Union on the World Health Organization (WHO) recommendations on scheduling cannabis and cannabis-related substances, as outlined in the Council Decision (EU) 2021/3.

On 2 December 2020, at the reconvened 63rd session of the United Nations (UN) Commission on Narcotic Drugs, Hungary voted against the Union position twice during the vote on the WHO recommendations in the listing of the substances under international control. Under EU law, the decisions on the international scheduling of substances under the Single Convention on Narcotic Drugs of 1961, as amended by the 1972 Protocol, and the Convention on Psychotropic Substances of 1971, fall under the exclusive competence of the European Union. Hence, the Council decision determining the Union position is binding on the EU Member States in line with the Treaty on the Functioning of the European Union.

The Commission therefore launched the infringement procedure against Hungary with a letter of formal notice sent on 18 February 2021, followed by a reasoned opinion on 12 November 2021. As the reply from the Hungarian authorities to both the letter of formal notice and reasoned opinion was unsatisfactory, the Commission has decided to refer Hungary to the Court of Justice of the European Union for failing to fulfil its obligations under the Council decision and acting in breach of the exclusive external competence of the Union as well as of the principle of sincere cooperation.

Background

On 24 January 2019, the World Health Organization presented six recommendations concerning the rescheduling of cannabis and cannabis-related substances under the UN Single Convention on Narcotic Drugs of 1961, as amended by the 1972 Protocol, and the UN Convention on Psychotropic Substances of 1971.

On 23 November 2020, the Council adopted Council Decision (EU) 2021/3 on the position to be taken, on behalf of the European Union, at the reconvened 63rd session of the Commission on Narcotic Drugs, on the scheduling of cannabis and cannabis-related substances under the Single Convention on Narcotic Drugs of 1961, as amended by the 1972 Protocol, and the Convention on Psychotropic Substances of 1971. The decision was addressed to the Member States in accordance with the Treaties and, according to Article 288 TFEU, was binding in its entirety for the Member States who were called upon to vote in the Commission on Narcotic Drugs.

The vote in the Commission on Narcotic Drugs concerning the WHO recommendations took place on 2 December 2020. Hungary voted against those recommendations. In addition, Hungary made a statement in the Commission on Narcotic Drugs strongly contradicting the EU position.

For More Information

Council Decision (EU) 2021/3

WHO Recommendations on cannabis and cannabis-related substances

Infringement decisions database

EU infringement procedure

Link to February 2023 infringements package

Canadian Banks Sued By The Cannabis Industry Over ‘Financial Discrimination’

Written by Hazel Norman on February 15, 2023. Posted in Business, Policy.

One of the most hotly-debated topics in the cannabis industry relates to banking access for companies. Many companies over the years have experienced banking issues related to cannabis prohibition around the world, and yet, many other countries have had no issues.

Understandably, there are people in the cannabis industry that think banking reform is a top priority, while others don’t seem as concerned about it for one reason or another. Many advocates are not necessarily opposed to banking reform, but rather, do not want to see it tied to social justice and equity efforts and simply decided on its own merits. Conversely, there are also others that do wish to tie the two together.

Certain members of Canada’s cannabis industry are apparently no longer interested in debating in the ‘public square’ and have taken their fight to the court system. Below is more information about it via a news release from Groupe SGF:

Groupe SGF (Cannabis Legal Advisors and Consultants) announces the launch of a class action lawsuit on behalf of Mr. Gabriel Bélanger (Founder of Origami Extraction Inc.) against the Desjardins Federation, National Bank, Royal Bank, Bank of Montreal, TD Bank, and CIBC. The lawsuit alleges that the named banks have engaged in financial discrimination against actors in the legal cannabis industry in Canada.

The legal cannabis industry in Canada faces financial discrimination

The plaintiff, Gabriel Bélanger, is determined to expose to the Superior Court all he has suffered as an actor of the legal cannabis industry in relation with the defendants. The main allegations involve denials of opening bank accounts, sudden closures of current bank accounts, and denials of access to various financial tools such as mortgage loans and credit lines for legal cannabis industry businesses.

Class Action: Justice for industry actors

The class action includes all individuals or corporations that, directly or indirectly, do business with the major defendant banks and who are involved in the legal cannabis industry since October 17th, 2018.

For more information on the class action, please visit Groupe SGF’s website at https://groupesgf.ca/action-collectives-banques.

Quote

“For far too long, Canadian banks have treated the cannabis industry like pariahs, as if it was still completely illegal. By doing so, they are depriving the Canadian, but especially the local economy of developing a promising market.”

Me Maxime Guérin, Lawyer, Groupe SGF – Cannabis Legal Advisors and Consultants

About Groupe SGF – Cannabis Legal Advisors and Consultants and the Plaintiff

Groupe SGF is a Quebec law firm specializing in the cannabis industry. The company represents the interests of industry actors facing legal and financial challenges.

The plaintiff, Gabriel Bélanger, engineer, is the founder and main shareholder of Origami Extraction Inc., a cannabis micro-processing company located in Beauce.

SOURCE Groupe SGF – Conseillers juridiques et consultants en cannabis

For further information: Maxime Guérin, Lawyer, 418-476-2906 (dedicated line), 1-866-782-5910 (toll-free), max@groupesgf.ca

Australia Cannabis Legalization Could Generate A$28 Billion In Tax Revenue In First Decade

Written by Hazel Norman on February 12, 2023. Posted in Policy.

A new government report is out in Australia involving projections of potential tax revenue if/when national adult-use cannabis legalization becomes a reality in the country. Adult-use is currently illegal in most areas of Australia, with a notable exception being the Australian Capital Territory where some legal protections for consumers exist.

Cannabis commerce, including medical cannabis commerce, is very restrictive in Australia. Most of the country’s medical cannabis industry activity currently revolves around pharmaceutical products and research.

Australia’s Parliamentary Budget Office recently released a report that presents two options for legalizing adult-use cannabis in Australia. Part of the report also includes projections for possible industry tax revenue. Per Newsfeed:

According to the PBO report , the first option calls for the creation of the Cannabis National Agency (CANA), which would act as the sole wholesaler between growers and retailers, set wholesale cannabis prices and issue licenses to potential cannabis owners. cannabis companies. Ideally, the agency would be funded entirely by production and retail licensing.

This option would legalize cannabis for anyone aged 18 and over, with no restrictions on how much a person can buy. This approach would also create penalties for selling to underage people, as with alcohol. Cannabis would be available to “overseas visitors”, and residents would be allowed to grow up to six plants. Finally, recreational sales would be “subject to the Goods and Services Tax (GST) as well as a 25% excise duty on sales including the GST”.

The second option contains all the provisions of the first option, except for the final recommendation, which would increase the excise tax to 15% instead of 25%.

The report estimates that legalization would generate as much as A$28 billion in the first ten years after a regulated adult-use industry was launched. It’s worth noting that the projected figure is largely based on a snapshot in time.

As the global cannabis industry continues to evolve and the landscape shifts, the profit potential for companies and governments will shift with it. That is true in Australia just as it is true everywhere else around the world.

It’s unclear at this time what the chances are of either option listed in the government report actually becoming law, but it is encouraging to see that multiple options are being considered, and that the information is from a government entity.

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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.

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.

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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.

Legalization Delays Are Causing Confusion In Luxembourg

Written by Hazel Norman on January 23, 2023. Posted in Policy.

At one point in time, towards the end of the last decade, Luxembourg seemed to be a sure bet to become the first country in Europe to pass a national adult-use cannabis legalization measure. After all, a coalition agreement included the reform.

Unfortunately, time has proven that agreement’s legalization provision to be essentially worthless, as it’s now the year 2023 and Luxembourg doesn’t appear to be trending towards legalization any time soon. While other countries on the continent are moving in the right direction, particularly Germany, Luxembourg’s reform efforts seem to be frozen in time.

Being that the government previously touted its legalization plans to such a significant degree, delays in legalization actually happening is resulting in confusion among the nation’s citizens, and recently the nation’s Minister of Health expressed doubts that legalization would happen at all under the current legislature. Per L’Essentiel (translated to English):

On Tuesday, the Minister of Health, Paulette Lenert, admitted that everything may not be voted on under this legislature . Three stages are planned: personal cultivation (four plants authorized), professional production and finally sale of recreational cannabis. “For now, I see this legislation as a total failure. It’s legal, no it’s not… People are all confused,” says Flo, who points out that four plants, depending on the THC level (with psychoactive effects) or the size of the pot used, “that means everything and nothing”.

That is far from an encouraging tone from Luxembourg’s Health Minister. There appears to be no timetable for consideration for any of the three stages mentioned, let alone implementation. Meanwhile, Luxembourg’s neighbor Germany is expected to see a legalization measure formally introduced this year, with sales possibly beginning in 2024.

Malta has already passed an adult-use legalization measure, and applications for non-profit cannabis clubs are expected to start rolling in next month. As legalization continues to spread across the continent, the pressure will continue to build around Luxembourg’s lawmakers, and it’s a safe assumption that their continued foot-dragging will becoming increasingly scrutinized by the citizenry.

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Legal Outlets Are The Most Common Source For Cannabis In Canada Since 2019

Written by Hazel Norman on January 23, 2023. Posted in Business, Policy.

Canada still serves as the largest legal, national cannabis adult-use market, with sales originally launching in late 2018. The nation serves as the largest national cannabis public policy experiment, and industry and policy observers around the globe are keeping a close eye on any and all data coming out of Canada.

Every year Canada conducts a survey to gauge, among other things, the rate at which consumers purchase their cannabis from legal outlets versus the unregulated market. One of the most important stated goals of governments that pass legalization measures, including Canada, is to transition cannabis sales away from the unregulated market into the regulated system.

According to the most recent survey out of Canada, more and more people are making their purchases via regulated sources, a growing trend that has occurred for multiple years now. Per Toronto Sun:

The results of the 2022 Canadian Cannabis Survey were released last month. It found that a greater proportion of respondents reported a legal source as their usual source of cannabis compared to 2021, with legal storefronts being the most common source since 2019. A smaller proportion reported illegal storefronts and illegal online sources in 2022 compared to 2019.

The proportion of those who purchased cannabis in the past 12 months from a legal storefront did so 61% of the time, according to the survey, up from 53% in 2021. Only 2% said they purchased products from an illegal website, 1% from an illegal dispensary and 1% from a cannabis dealer.

The unregulated cannabis market will never be 100% eliminated in Canada or any other jurisdiction that is home to large populations. Just as there are still people selling unregulated alcohol and tobacco products in Canada, so too will the same occur with cannabis.

The name of the game is to mitigate unregulated sales as much as possible, and Canada is doing a great job of that so far. Transferring a decades old unregulated market into a regulated one is not an easy task, and takes time to fully materialize.

British Columbia Publishes Results Of Cannabis Consumption Spaces Public Engagement

Written by Hazel Norman on January 15, 2023. Posted in Policy.

Back in the spring (April 6 to May 9, 2022) British Columbia’s government launched a public engagement effort in an attempt to gain insight into the public’s feelings towards non-medical cannabis consumption spaces, often referred to as social use reform.

Social use reform involves allowing people to consume cannabis for adult-use purposes in a semi-public setting such as at a lounge, club, other type of business, and/or event. It’s a concept that is obviously very common with alcohol consumption, but due to stigma, is not currently common with cannabis.

A summary of the public’s feedback is now available online via a government “what we heard” report.

“Health and safety are our utmost priorities as we consider how provincial cannabis policies could evolve,” said Mike Farnworth, Minister of Public Safety and Solicitor General, in a press release. “This report provides valuable insights into people in B.C.’s perspectives on cannabis and will help guide our work to support a strong, diverse and safe legal cannabis sector across the Province.”

“Exploring the feasibility of cannabis-consumption spaces is another way B.C. is working to support the success of the industry,” said Brittny Anderson, Parliamentary Secretary for Tourism. “With the recent introduction of a licence for farm-gate sales, understanding public opinion on cannabis-related hospitality and agri-tourism activities is a practical next step. The feedback in this report will play an important role in the development of provincial policies.”

Seven hundred and thirty people submitted feedback via a telephone survey, 15,362 respondents completed an online survey, and 66 people/entities submitted feedback in written form.

“Overall, 61% of telephone survey respondents and 34% of online survey respondents supported cannabis consumption spaces. Differences between results from the telephone and online surveys may be partly due to the research methods used, with the online survey at greater risk of self-selection bias (i.e., participation from people who feel strongly either for or against cannabis consumption spaces) whereas telephone survey respondents were selected via random sampling.” the “what we heard” report stated.

“Moreover, among those who use cannabis, those aged 19 to 44 were also more interested in visiting consumption spaces (81% online, 62% telephone) than those aged 45 to 64 (72% online, 41% telephone) and those aged 65+ (59% online, 38% telephone).” the report went on to say.

Is Uruguay’s Cannabis Industry About To Evolve?

Written by Hazel Norman on January 14, 2023. Posted in Policy.

Over nine years ago Uruguay made history after passing the world’s first-ever national adult-use cannabis legalization measure. In December 2013 Uruguay’s President José Mujica signed a measure that permitted residents of Uruguay to cultivate their own cannabis, to join a private cannabis clubs, and eventually to purchase cannabis from pharmacies.

Being that Uruguay serves as the oldest national adult-use cannabis policy experiment, many cannabis observers from around the world have watched everything that has happened in Uruguay with a very close eye. By virtually every measure legalization has succeeded.

Since it’s initial passage Uruguay’s legalization model has evolved at a slow pace. As an example of that, legal sales at pharmacies began in Uruguay in the summer of 2017, with consumers being able to choose from two different strains. Late last year, Uruguay finally permitted a third option with higher levels of THC to be purchased from pharmacies.

As the nation approaches the ten year anniversary of the passage of the historic legalization measure, leadership is indicating that the nation’s legalization model could further evolve. Per La Diaria Politica:

Round anniversaries have an unconscious effect on people that leads them to take stock and review some things. In 2023, for example, it will be ten years since the approval of Law 19,172, which at the time put Uruguay at the center of the international debate on drug policies, and Juan Ignacio Tastás, executive director of the Institute for Regulation and Control of Cannabis (Ircca), believes that it is a good opportunity for the political system to propose to rediscuss the law, remove some fears and make access more flexible.

All this would also take place in a pre-electoral year, with previous questioning of the law within the same government coalition, chiaroscuro in police action with some self-cultivators, more and more pharmacies and a bill that intends to sell to tourists. After ten years and a long way to go, is it time to change the regulations?

The excerpts are from an interview with Juan Ignacio Tastás, executive director of IRCCA. IRCCA is the regulatory body that oversees Uruguay’s emerging cannabis industry. In the interview Tastás talked favorably about legalization, pointing out that many of the fears leading up to legalization have since proven to be unfounded.

Arguably the biggest change that Uruguay could make to its legalization model to help the domestic industry reach its full potential would be to open up legal sales to non-residents. Currently, only residents of Uruguay can make legal purchases.

Whether or not that will happen soon, and what access to legal cannabis for tourists will ultimately look if/when it happens is unclear. In theory, tourists could make purchases at pharmacies fairly quickly if the law changes, as pharmacies are already heavily regulated.

Clubs are another option, however, they are not regulated in the same manner as pharmacies, so setting up access via that route could take longer to implement. A fourth option at pharmacies is expected to occur later this year, and hopefully tourists will be able to partake in the new option by the time it goes live.

Will Barcelona’s Cannabis Industry Reach Its Full Potential?

Written by Hazel Norman on January 12, 2023. Posted in Business, Entertainment, Policy.

Barcelona, Spain is the social cannabis use capital of the world. Home to hundreds of cannabis lounges and clubs, Barcelona’s cannabis community and consumer experience is unique in every way. Unfortunately, the public policies in Spain pertaining to such establishments do not currently align with reality, with many lawmakers and regulators choosing to stick their heads in the sand and act as if Barcelona’s emerging industry doesn’t exist.

That approach by many lawmakers and regulators does a huge disservice to not only people involved in the cannabis trade, but also the rest of society which would benefit from a regulated industry. Just as the adult-use cannabis industry is generating a significant economic impact in Canada, so too could it do the same in Spain, particularly in Barcelona.

Generating Jobs and Tax Revenue

Every member of a society benefits from a boost in the economy to some degree, particularly when that boost comes from afar. When cannabis enthusiasts travel to an area to partake in cannabis commerce, they need rides to and from lounges, they eat and shop in the area, and they pay for lodging, among many other things. The larger the tourist population, the more local people benefit from the increased commerce.

In Barcelona, all the cannabis consumption at clubs and lounges occurs in private settings, so the mere activity of consuming cannabis is not a nuisance, and thus, the economic boost is clearly a net gain to the region. Cannabis tourism generates jobs, and if the industry is regulated, it also generates taxes and fees that go to public coffers, which is one of the many reasons why Spain should be embracing Barcelona’s clubs and lounges instead of making them operate in limbo. Additionally, society benefits from no longer having public revenue earmarked for enforcing failed public policy (cannabis prohibition).

How to Address the Issue?

Ultimately, it is up to lawmakers in Spain to pass comprehensive cannabis reform at the national level in order to get Barcelona’s emerging cannabis industry built on a solid legal foundation. Local leaders in Barcelona previously adopted a limited regulatory model for cannabis clubs just to see the policy later thrown out by the nation’s top Court, so there’s likely nothing meaningful that can be done at the local level.

Public pressure must reach a critical mass to hold lawmakers accountable when they drag their feet on cannabis reform, and if they will still refrain from taking meaningful action, they need to be replaced with people that will act. Any pressure campaign must involve a heavy dose of public education to combat any misinformation being spread by opponents, and to help convince people that are on the fence about the issue to get on the right side of history.

Leaders Coming Together

Barcelona’s rich cannabis history and culture makes it once again the perfect backdrop to the International Cannabis Business Conference trade show, taking place March 9, 2023. Cannabis policymakers and industry leaders from all over the globe will be in attendance, and one of the major focuses of the conference will be how to move Spain’s industry forward.

The International Cannabis Business Conference is the leading cannabis business to business (B2B) event series on the planet, with previous conferences occurring in several countries on multiple continents. The event series is owned and operated by cannabis advocates that believe in celebrating cannabis culture, in addition to providing world-class cannabis industry education and networking opportunities.

The International Cannabis Business Conference has once again partnered with Spannabis, Europe’s top cannabis expo, to form another super-event that is a must-attend for anyone that is serious about succeeding in the emerging cannabis industry. Spannabis originally teamed up with the International Cannabis Business Conference in 2019, and the collaboration was a tremendous success. The 2023 super-event will be bigger and better than ever, with the collaboration event being the largest of its kind. Participating speakers and an event schedule will be announced soon.

Could Malta Help Move the Needle?

One thing that will be interesting to observe is what is currently unfolding in Malta. Malta passed a national adult-use legalization measure late last year, making it the first country in Europe to do so.

The measure was largely built on the premise of consumers obtaining their cannabis from non-profit cannabis clubs. The only other way for adults to obtain cannabis is to cultivate it themselves or to be gifted it.

It is unclear right now how long it will be after applications are initially collected before the first regulated club is opened, however, things do seem to be moving along. Once Malta officially rolls out its cannabis club licenses and sets up all the processes and regulations pertaining to it, it will have created a blueprint for other countries to mimic, including and especially Spain.

New Medical Cannabis Industry Regulations Delayed In Spain

Written by Hazel Norman on January 9, 2023. Posted in Business, Policy.

Back in June 2022 Spain’s Health and Consumption Commission of the Congress of Deputies approved an opinion of the Medical Cannabis Subcommittee which called for medical cannabis industry regulations.

Part of that approved opinion involved tasking the Spanish Agency for Medicines and Health Products (Aims) to come up with a regulatory plan within 6 months regarding how it would implement the recommendations of the approved opinion.

That six-month deadline expired in December 2022, and here we are in 2023 and it’s still unclear when the plan will be released. Per El Espanol (translated to English):

The agency dependent on the Ministry of Health coordinated by Carolina Darias had a period of 6 months to prepare a document with recommendations so that the regulations have legal requirements and are “viable”. The problem? That document has not arrived. And we are already in 2023.

This means that Health has not met the deadlines and that the great project of Podemos -which the PSOE later embraced- to make medical marijuana a reality before the May elections is complicated.

The government in Spain failing to meet a mandated, cannabis-based deadline is not entirely unique. In October 2018 Mexico’s Supreme Court rendered a decision that deemed cannabis prohibition to be unconstitutional, and tasked lawmakers with passing a legalization measure within a year.

Clearly, lawmakers in Mexico did not meet that original deadline, and have also failed in meeting subsequent deadlines. What is going on in Spain is not an apples to apples comparison to what is going on in Mexico, however, it does highlight that when deadlines are not met it leaves cannabis advocates inside and outside of government scrambling to try to find ways to move the needle in the country where delays are occurring.

We will make sure to continue to keep a very close eye and to monitor the situation in Spain for signs of movement.

Will Costa Rica Become A Top Cannabis Tourism Destination?

Written by Hazel Norman on January 9, 2023. Posted in Business, Entertainment, Policy.

Cannabis tourism is not a new thing, however, the size of that particular sector of the emerging international cannabis industry has historically been limited. Obviously, that is due in large part to prohibition laws around the globe.

For many years Amsterdam was the undeniable leader when it came to international cannabis tourism, with a handful of other notable cities such as Barcelona and Vancouver (Canada) also serving as top destinations for cannabis enthusiasts.

As cannabis reform continues to spread across the globe, and with it, the legal cannabis industry, lawmakers in some countries are seeming to envision their regions also serving as top international cannabis tourism destinations, with the latest example of that being in Costa Rica. Per The Q Media (translated to English):

The bill to legalize the use of recreational marijuana in Costa Rica authorizes the Instituto Costarricense de Turismo (ICT) – Costa Rican Tourism Board – to promote the country as a destination for responsible consumption.

This is established in article 52 of initiative 23,383 that is being analyzed by the legislative commission on the environment (Comisión de Ambiente del Congreso).

Specifically, it indicates:

“The Instituto Costarricense de Turismo should establish information campaigns at the international level to promote Costa Rica as a tourist destination for the responsible consumption of cannabis for recreational use.”

The bill itself is far from guaranteed to pass, so the language pertaining to boosting cannabis tourism needs to be taken with a grain of salt. Cannabis advocates inside and outside of Costa Rica are clearly rooting for legalization to be adopted in Costa Rica, however, as with all things political, no one should count any eggs before they hatch.

According to World Data, “Costa Rica recorded a total of one million tourists in 2020, ranking 90th in the world in absolute terms.” With that in mind, any and all additional tourism that cannabis legalization can generate for Costa Rica will surely be appreciated.

Medical Cannabis Products Now Covered By Government-Funded Health Insurance In Colombia

Written by Hazel Norman on January 8, 2023. Posted in Policy.

In 2022 Colombia’s Health Ministry approved the expansion of health insurance coverage of certain medical procedures and medications, including expansion to cover some medical cannabis products. The effective date for the expanded coverage was January 1, 2023.

While it never seemed to be in doubt that the medical cannabis insurance coverage would ultimately take effect, it was reassuring to see that the new coverage was indeed implemented, with reassurances provided by the Health Ministry.

News of the reassurances came via a press release from Khiron Life Sciences Corp late this week. Below are excerpts from the press release:

Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), announces that the new Colombian Government has included plant-based medical cannabis products (i.e., Khiron products) in the list of mandatory insurance-covered medications starting January 1^st, 2023, as well as the signing of a first-of-its-kind medical cannabis contract with one of Colombia´s largest insurance companies based in the city of Bogota.

Resolution 2808 of 2022 was signed by the Ministry of Health on December 30, 2022. This revision was necessary to remove unintended ambiguities that had arisen whether plant-based magistral preparations from medical cannabis (i.e., Khiron products) were also included in the insurance coverage. This is now once and for all clearly confirmed. The new government is fully committed with the use of medical cannabis as a covered treatment under the Colombian health system.

The Government used this iteration to also validate medical conditions where they find moderate to strong evidence that cannabis is an effective treatment. These medical conditions evaluated by the IETS (Technical Institute of the health Sector) include chronic and neuropathic pain, oncology pain, sleep disorders, epilepsy, and fibromyalgia, which represent the primary conditions treated with Khiron products.

During the first half of 2022, insurance-covered prescriptions represented more than 90% of the Company´s cannabis sales in Colombia. With a patient base of more than 25,000 patients, Khiron will immediately resume filling insurance-covered prescriptions through its Zerenia clinic network.

Alvaro Torres, CEO of Khiron, comments: “Today is a great day for patients in Colombia and Khiron. We welcome the decision from the new Colombian government to categorically mandate insurance coverage for our medical cannabis products. With this decision, Khiron will immediately tackle the backlog of covered medical cannabis products to our patients. In parallel, we have also secured a first-of-its-kind contractual relationship with one of Colombia´s largest government-owned insurance companies for medical cannabis specific healthcare services and dispensation. These two achievements, will allow us to revert to predictable recurring revenues, shorter collection periods and improved cashflow.”

The Amount Of Legal Cannabis Planted In Greenhouses In Uruguay Nearly Doubled In A Year

Written by Hazel Norman on January 4, 2023. Posted in Business, Policy.

Uruguay’s legal cannabis industry may not be as large as industries in other nations, however, it will always hold the distinction of being the first regulated national adult-use cannabis industry in the world’s history.

Lawmakers in Uruguay first passed a legalization measure back in 2013, nearly ten years ago. It took a handful of years for the first legal transaction to occur, and these days consumers of legal age in Uruguay have several options for legally sourcing cannabis, including via pharmacies.

By many reasonable measures the legal cannabis industry is succeeding in Uruguay, and that is reflected in statistics that were recently released regarding how much cannabis is being planted in greenhouses in Uruguay. The rate of increase is impressive. Per La Diaria Politica (translated to English):

The Directorate of Agricultural Statistics of the Ministry of Livestock, Agriculture and Fisheries (MGAP) published this week the 2022 Yearbook, which includes the current status and evolution of agricultural production and provides other related data, such as the volume of exports and imports. of agricultural products, the price of land and registered purchase and sale operations.

The document reports a significant increase in the area of cannabis in greenhouses, which went from 120,000 to 239,782 square meters between the agricultural years 2020/21 and 2021/22. In the same sense, the number of licenses granted for the plantation of cannabis went from 80 to 167 in the same period. In contrast, open-air cannabis plantations have been on the decline since 2020, and went from 580 hectares to 513 in the aforementioned period.

Greenhouses are a much more sustainable method for cultivating cannabis compared to cultivating cannabis inside of a building being that they use less non-renewable resources. The climate in Uruguay is favorable for cultivating cannabis in general, and greenhouses help keep pests and rain off of the plants while also maximizing exposure to sunlight.

As we previously reported, Uruguay recently expanded the number of cannabis options at pharmacies, with a higher-THC option rolling out last month. Another cannabis option is expected to come to pharmacies in Uruguay in late 2023, although it is still unclear what cannabinoid levels will be involved with the new variety.

France Lifts Ban On CBD Product Sales

Written by Hazel Norman on December 31, 2022. Posted in Business, Policy.

Roughly one year ago, on December 30, 2021 the government in France issued a ban on the sales of CBD products. CBD products have increased in popularity and availability throughout Europe in recent years, including in France.

Due to ongoing cannabis stigma, some lawmakers and regulators have portrayed CBD as being harmful, and they seem to have dusted off a number of reefer madness talking points that used to be applied to cannabis in general and are now revamping them to be more narrowly focused on CBD.

That stigma and ongoing anti-cannabis rhetoric by opponents has led to CBD crackdowns in some parts of the world. France’s ban was effectively short lived, as the ban was initially put on hold in January 2022 and is now being lifted altogether. Per Le Parisien:

The good news is confirmed for CBD sellers. Temporarily suspended last January, the ban on the sale in the raw state of the flowers and leaves of certain varieties of cannabis is now officially lifted, according to a decision of the Council of State on Wednesday , which “cancels the decree of December 30 2021 prohibiting the sale of cannabis flowers and leaves with a THC (tetrahydrocannabinol) level of less than 0.3%”.

The institution “notes that CBD (cannabidiol), which has no psychotropic effect and does not cause addiction, cannot be considered a narcotic product”.

The Council of State “retains that it has not been established that the consumption of the flowers and leaves of these varieties of cannabis with a low level of THC would involve risks for public health. It therefore considers illegal the general and absolute prohibition of their marketing”.

Another example of a looming CBD crackdown can be found in Hong Kong where a complete CBD ban is going into effect in 2023. Unlike France, leaders in Hong Kong have made it clear that they will not be reversing course and that the ban will indeed go into effect and anyone caught violating the new ban will receive years in prison.

France’s lifting of the previous CBD ban is certainly welcomed news, however, the European nation still has a long way to go when it comes to improving cannabis policy. Cannabis consumption is very popular in France, and cannabis prohibition is a failed public policy. It’s beyond time that France got completely on the right side of history when it comes to cannabis laws.

German Lawmakers Block Health Ministry Funding And Demand Legalization Measure

Written by Hazel Norman on December 26, 2022. Posted in Policy.

As 2022 draws to a close and cannabis observers start to look ahead to 2023, Germany will continue to be the focal point of most people’s attention. Germany’s Health Minister Karl Lauterbach is currently lobbying the European Union for its approval of the general legalization plan that he presented to the federal cabinet back in October.

Various theories are swirling as to why European Union sign off is being sought prior to the introduction of a measure in Germany, with the leading theory seeming to be that approval would mitigate challenges from EU member nations seeking to prevent the spread of legalization.

A group of lawmakers in Germany is growing impatient with the delays related to the introduction of legalization, demanding that a measure be introduced immediately. They even recently followed through with a threat to withhold some of the Health Ministry’s funding due to the delay. Per RND:

It was an unusual process: During the budget deliberations for 2022, the budget politicians of the traffic light coalition put Health Minister Karl Lauterbach (SPD) under heavy pressure: they decided to block an amount of one million euros for the ministry’s public relations work until Lauterbach presents a draft law for the legalization of cannabis agreed in the coalition agreement. The reason for this approach: the coalition partners had the impression that Lauterbach did not actually want the release and was therefore trying to delay the project.

Lauterbach actually thought he was on the right track, because at the end of October he presented very detailed key points for legalization. They stipulate that the acquisition and possession of up to 30 grams of cannabis should be exempt from punishment in the future. However, a concrete draft law is still missing.

There appears to be rumblings out of Germany that the components of the general legalization plan presented to the federal cabinet in October are not firm, and that it’s possible that some components could get watered down due to negative feedback from the EU during discussions.

Hopefully, a measure is officially introduced soon in Germany and the parameters are favorable, regardless of if there is EU sign off or not. It is unclear what will happen if/when EU approval is not granted.

Minister Lauterbach has previously indicated that he will not pursue legalization without prior EU approval, however, if it keeps resulting in lost funding perhaps it could change his tune. Meanwhile, we will all continue to wait and watch for any signs of movement.

Are Changes Coming To Cannabis Enforcement In Britain?

Written by Hazel Norman on December 26, 2022. Posted in Policy.

Earlier this year the Mayor of London, Sadiq Khan, launched a commission to explore London’s cannabis enforcement policies, which is something that he campaigned on as a candidate. Throughout 2022 Mayor Khan seemed to be promoting a policy that is essentially cannabis decriminalization.

Cannabis decriminalization is obviously not as good as outright legalization yet is clearly superior than arresting people caught with a personal amount of cannabis. Khan’s expressed desire to change London’s cannabis enforcement policies was condemned by other officials, including Steve Reed, the Labour’s Party’s shadow justice secretary.

As we previously reported, Reed made the ridiculous claim that cannabis decriminalization would “turn London into a drug supermarket.” It appears that Reed’s reefer madness talking points are not gaining as much traction in some circles as presumably hoped, with reports that the National Police Chiefs’ Council and College of Policing are proposing a less-harsh approach to cannabis penalties. Per Daily Mail:

First time users of cocaine and cannabis will be offered education or treatment programmes rather than being prosecuted under new plans being drawn up by police bosses.

Officers would agree to take no further action against those caught in possession of illegal drugs, including class A and B, for the first time under new proposals being drawn up by the National Police Chiefs’ Council and College of Policing.

The offender would therefore avoid a criminal record, however, they would be prosecuted if they failed to take part in education or treatment programmes or were caught with drugs again.

According to reporting out of Britain, fourteen police forces already use this enforcement approach, including law enforcement agencies in Durham, Thames Valley, and West Midlands. It’s not an optimal approach, however, it’s a step in the right direction.

No one should be forced into rehab or counseling simply because they were caught with cannabis. Cannabis possession, or even confirmed use, is not automatically problematic be default. If a consumer wishes to go to rehab for cannabis, so be it, but it should be a personal decision and not something that is imposed by the government.

Is Luxembourg Abandoning Its Previous Legalization Plans?

Written by Hazel Norman on December 25, 2022. Posted in Policy.

Luxembourg was once thought to have the best chance of passing Europe’s first nationwide adult-use cannabis legalization measure. Of course, that ‘historic first’ never materialized in Luxembourg and the actual first country to pass such a measure was eventually Malta, which did so near the end of 2021.

Even though Luxembourg failed to become the first to pass a legalization measure, there was still quite a bit of hope that legalization would still become a reality in the European nation in the near future. Unfortunately, the chances of legalization happening any time soon in Luxembourg seem to be getting worse with every passing month.

Earlier this month we reported on grievances aired by the general prosecutors office, which cited concerns about ‘contradictions, unequal treatment, lack of clarity, oversights, serious error of logic or even the door wide open to abuse.’

While it is not shocking to see political delay tactics and reefer madness rhetoric being incorporated by cannabis opponents, it is disheartening to a degree to see supporters of cannabis reform changing their tones and the type of wording they use to describe the current effort in Luxembourg. Per RTL Today (translated to English):

Minister of Justice Sam Tanson once again defended the government’s decision to regulate recreational cannabis consumption, pointing out that this was already included in the governing coalition’s programme before the last national elections in 2018.

The initial plan of the coalition between the Democratic Party (DP), the Luxembourg Socialist Workers’ Party (LSAP), and the Green Party (déi Gréng) was to legalise cannabis.

However, Tanson explained that because the government does not want to allow cannabis consumption in public spaces, they now prefer to talk about “regulation” rather than “legalisation.” In addition, cannabis will be “decriminalised,” as residents will be permitted to carry up to 3 grammes of marijuana.

In addition to permitting possession of up to 3 grams, the current proposal being circulated in Luxembourg’s political circles would also permit the cultivation of up to four plants. For contextual purposes, Germany is considering legalizing possession of up to 30 grams of cannabis and the cultivation of up to three plants, and Malta currently permits the possession of up to 7 grams of cannabis and four plants.

Bavaria’s Health Minister Increases Efforts To Try To Prevent German Legalization

Written by Hazel Norman on December 19, 2022. Posted in Policy.

Earlier this month we reported that Germany’s Health Minister Karl Lauterbach (SPD) was seeking an ‘expert opinion’ to help with his European Union legalization lobbying push. Minister Lauterbach mentioned as part of his formal presentation to the federal cabinet in Germany back in October that prior to formally introducing a legalization measure he would seek the European Union’s approval to proceed.

At first it seemed to be a bit unclear as to why exactly an expert opinion would be incorporated into the lobbying effort, however, this week Bavaria’s Health Minister Klaus Holetschek (CSU) announced that he too would be seeking an expert opinion as part of his opposition push, which doesn’t seem like a coincidence. Minister Holetschek has emerged as the leading domestic voice against the Traffic Light Coalition’s legalization plan.

In his latest attempt to try to derail the legalization effort Minister Holetschek will commission an expert opinion from the University of Erlangen-Nuremberg. Per Nordbayern:

Bavaria’s Health Minister Klaus Holetschek (CSU) wants to have the federal government’s plans for cannabis legalization examined with a legal opinion. “Despite major health risks and legal concerns, the traffic light coalition has so far stuck to its plans. That’s why I commissioned a legal opinion to clarify the international and European legal limits of cannabis legalization in Germany,” said Holetschek. His goal is to objectify the debate.

Bernhard Wegener, Chair of Public Law and European Law at the University of Erlangen-Nuremberg, has been commissioned to draft the report. The report should be available by the end of February 2023.

Minister Holetschek may be the leading voice against legalization, however, he is not the only one to speak out against current German reform efforts. North Rhine-Westphalian Minister of the Interior, Herbert Reul, has also spoken out against legalization in recent days.

In an interview this week with Frankfurter Allgemeine, Minister Reul described the Traffic Light Coalition’s adult-use legalization plan as being “insane” and stated in the interview, “I dread legalization.” Comments were translated from German to English.

What is not being talked about among cannabis opponents in Germany, at least not in good faith, is the harms of cannabis prohibition. Cannabis prohibition is exponentially more harmful than any ‘social costs’ related to legalization. Canada and Uruguay are proving that in real time, and soon Malta likely will as well.

cannabis plant flower cannabis plant flower

Saskatchewan Government Files First Nations Cannabis Authority Legislation

Written by Hazel Norman on December 17, 2022. Posted in Business, Policy.

The emerging cannabis industry has the potential to transform communities and boost opportunities for those that live where cannabis commerce is permitted. A report from earlier this year by Deloitte highlighted just how much the legal cannabis industry has helped communities in Canada.

One of the major takeaways from the analysis is that the legal cannabis industry in Canada had created roughly 151,000 jobs as of the report’s publishing. In addition to generating new jobs across the country, the emerging legal cannabis industry was responsible for generating over $15 billion since legal adult-use sales launched in late 2018.

The overall economic boost from Canada’s legalized industry is substantial. Deloitte estimated that the legal cannabis industry in Canada had contributed over $43.5 billion to the nation’s GDP since the start of legalization as of February. Cannabis companies have directly invested roughly $4.4 billion into Canada’s economy, with the remaining boost to GDP coming from “indirect” economic contributions, and “induced” contributions according to Deloitte.

First Nations in Canada are progressively getting more involved in the emerging cannabis industry, and in Saskatchewan specifically, lawmakers are pushing for First Nations to be able to self-govern and self-regulate the cannabis industry on-reserve. Below is more information about it via a news release form the government of Saskatchewan:

Today, the Government of Saskatchewan introduced two pieces of legislation that lay the groundwork for increased First Nations self-governance.

The Summary Offences Procedure Amendment Act, 2022 will provide a legal framework that First Nations communities can use to enforce laws and bylaws on reserve.

“The Government of Saskatchewan is proud to take this important step as part of our ongoing work with the Muskoday and Whitecap Dakota First Nations,” Justice Minister and Attorney General Bronwyn Eyre said. “These amendments will allow these and other First Nations communities in the future to use the more simplified summary offences procedure, instead of the long-form process under the federal Criminal Code, to issue tickets and fines such as those issued for traffic violations and other provincial offences.”

These amendments follow a Memorandum of Understanding that was signed by the Government of Saskatchewan, Muskoday First Nation and Whitecap Dakota First Nation on October 18, 2019, to address longstanding issues around the enforcement of First Nations’ laws.

“First Nations assert their jurisdiction and maintain community safety by creating laws under the Indian Act, land codes, and other federal legislation but there have been difficulties in enforcing these laws in the courts,” Chief of Whitecap Dakota First Nation Darcy Bear said. “Through our work with the provincial government, the amendments to SOPA will give us access to prosecution and enforcement tools that will give force to our laws in areas such as environmental protection and community safety; and strengthen the place of our laws alongside federal and provincial law.”

The Cannabis Control (Saskatchewan) Amendment Act, 2022 establishes the provincial legal framework for First Nations to license and regulate the distribution and retailing of cannabis on-reserve.

“Our government supports First Nations exercising their authority over on-reserve distribution and retailing of cannabis through a legal framework with SLGA,” Minister Responsible for SLGA Lori Carr said. “This change further fosters reconciliation by ensuring First Nation-owned businesses are able to fully participate in the economic opportunities presented by the retail cannabis industry.”

The proposed amendments provide First Nations the opportunity to create their own First Nations regulatory framework consistent with federal and provincial legislation to establish a local cannabis authority. Once established, stores regulated by First Nations will have access to federally regulated cannabis products.

These amendments will also require all Saskatchewan cannabis retailers to only ask for proof of age when a purchaser appears to be under the age of 25. Currently, retailers are required to ask for proof of age from all purchasers.

New Report In Ireland Recommends Considering Cannabis Legalization

Written by Hazel Norman on December 17, 2022. Posted in Policy.

Ireland’s Oireachtas Justice Committee is recommending that the government consider legalizing cannabis for adult-use, in addition to wider drug policy reforms. According to its website, the Oireachtas Justice Committee “shadows the Department of Justice and considers policy in the fields of justice, security and the rule of law to ensure that Irish society is safe, secure, just, open-minded and impartial.”

As we previously reported late last month, People Before Profit TD Gino Kenny formally filed an adult-use legalization measure that, if passed, would legalize cannabis possession for people 18 years old or older in Ireland.

The measure is not as robust as the legalization model currently in place in Canada, and would legalize the personal possession of up to seven grams of cannabis flower and 2.5 grams of concentrates. The bill would not legalize cannabis sales.

“I believe that if passed, this bill will provide a stepping stone to a more progressive drug policy in Ireland.” TD Gino Kenny stated on Twitter last month. The report by the Oireachtas Justice Committee does recommend that the government consider launching legal sales, with the goal of battling the unregulated market. Per The Journal:

A NEW REPORT by the Oireachtas Justice Committee has recommended that legalisation of certain drugs be examined by the Government as well as allowing some drug cultivation at a “non-profit” level.

The report, published this morning, recommends that the Government examines a regulatory model for certain drugs, including cannabis, as part of measures to reduce the impact of the existing black market for illicit substances.

What the report is recommending is something similar to what is currently being put into place in Malta. Malta passed a limited legalization measure in late 2021, with the main way for consumers to eventually source their cannabis involving non-profit cannabis clubs.

Cannabis legalization faces an uphill battle in Ireland, as demonstrated by the reaction from some lawmakers in Ireland after Gino Kenny formally introduced his limited measure. If Gino Kenny’s bill is receiving pushback, then it’s a safe bet that the new report will also receive similar pushback, and perhaps even more. Still, the report is encouraging, and in theory, could move the discussion needle a bit.

Canada Increases Cannabis Beverage Possession Limit

Written by Hazel Norman on December 12, 2022. Posted in Policy, Science.

The cannabis beverage sector of the emerging international cannabis industry has been very interesting to follow. It’s often the subject of a great deal of public relations efforts it seems, with industry leaders often touting it as ‘the next great sector’ that entrepreneurs, investors, and consumers should watch for.

Cannabis-infused beverages have certainly risen in popularity in recent years among patients and consumers, with that popularity being paralleled by a dramatic increase in selection. Drinkable forms of cannabis are a great consumption method for various reasons, and unlike many cannabis products, beverages almost always seem to come in packaging that is easy to recycle.

Canada is home to the largest nationwide, legal adult-use cannabis industry and several cannabis-infused beverage products are available across the nation. The Canadian government recently announced changes to cannabis beverage possession limits, in addition to changes to cannabis testing and research. Below is more information about it via a government news release from Health Canada:

Today, Health Canada announced that amendments to the Cannabis Act and its regulations concerning cannabis research and testing, and cannabis beverages have been approved and are now in force as of December 2, 2022. A copy of the final regulations, as well as the Regulatory Impact and Analysis Statement is expected to be published in the Canada Gazette, Part II, on December 21, 2022.

These amendments follow extensive engagement with stakeholders, universities, researchers, health authorities, cannabis industry associations, cannabis licence holders, provinces, territories and the public. They aim to facilitate research and testing, and also amend the public possession limit for cannabis beverages to bring them in line with other cannabis products.

Notably, these amendments:

Increase the public possession limit for cannabis beverages to a level that is similar to other forms of cannabis, such as solid edible cannabis products (i.e. gummies or chocolate). Adults in Canada are now able to possess up to 17.1 litres (equal to 48 cans of 355 ml each) of cannabis beverages in public for non-medical purposes, which is up from approximately 2.1 litres (equal to five cans of 355 ml each) under the previous rules. Existing controls that mitigate the risks of overconsumption and accidental consumption, such as child-resistant packaging and strict limits on the amount of THC per container, remain in place;
Change how Health Canada regulates non-therapeutic cannabis research with human participants, helping make the process of conducting this research easier, while still maintaining appropriate public health and safety controls;
Allow analytical testing licence holders and federal and provincial government laboratories to produce, distribute and sell reference standards and test kits, to increase access to cannabis testing materials and thereby support access to a quality-controlled supply of cannabis; and
Broaden the educational qualifications for the Head of Laboratory, a position that is required for an analytical testing licence and is responsible for all cannabis testing activities that occur at the licensed site.

Transition periods are provided to reduce potential impacts on existing research licence holders conducting research with human participants, and on processing licence holders who produce cannabis beverages. The Cannabis Act serves as a flexible legislative framework that adapts and responds to the needs of Canadians.

Health Canada will continue to engage with stakeholders and pursue initiatives to address ongoing and emerging public health and safety issues to improve the cannabis framework so that it meets the needs of Canadians while continuing to displace the illicit market.

Quick Facts

The Cannabis Act (the Act) came into force on October 17, 2018. With the Act, the Government of Canada legalized and strictly regulated the production, distribution, sale, import and export, and possession of cannabis.
The Minister of Health and the Minister of Mental Health and Addictions launched the legislative review of the Cannabis Act on September 22, 2022. The review is being conducted by a five-member independent, expert panel, who will report their final conclusions and advice to the Ministers by Spring 2024.
Health Canada’s Forward Regulatory Plan provides information on regulatory initiatives that Health Canada aims to propose or finalize in the next two years, including those pertaining to the cannabis framework.

Associated Links

Contacts

Guillaume Bertrand
Senior Communications Advisor and Press Secretary
Office of the Honourable Jean-Yves Duclos
Minister of Health
613-957-0200

Media Relations
Health Canada
613-957-2983
media@hc-sc.gc.ca

Public Inquiries:
613-957-2991
1-866-225-0709

Cannabis Seizures Decrease 98% At California/Mexico Ports Of Entry

Written by Hazel Norman on December 11, 2022. Posted in Policy.

Historically, one of the most active parts of the world for illegal cannabis activity was along the border shared between the United States and Mexico. For many years cannabis cultivated in Mexico, and farther south in the hemisphere, was smuggled into the United States where it was then transported throughout the country.

In recent years, however, demand in the United States for cannabis cultivated in Mexico has decreased significantly due in large part to the rise of the legal state-level cannabis industry in the U.S. Starting in 1996 with the legalization of medical cannabis in California, a number of states have passed medical cannabis reform measures in the U.S. that resulted in the spread of legal sales.

The spread of legal cannabis commerce in the United States accelerated in 2012 with the passage of adult-use legalization measures in Colorado and Washington State, leading to a situation today in which nearly half of the United States now lives where cannabis is legal, with many states currently allowing home cultivation to some degree in addition to permitting sales.

With all of that in mind, it likely doesn’t surprise anyone that cannabis seizures at California/Mexico ports of entry are down in recent years. Although, it may surprise people just how much of a reduction has occurred. Below is more information about it via a media release from United States Customs and Border Protection. As you will see, cannabis seizures are down 98%:

SAN DIEGO — U.S. Customs and Border Protection officers conducting security operations at California’s ports of entry with Mexico performed more than 54.7 million inspections of travelers, seized more than 50 tons of illegal narcotics, and apprehended more than 74,000 immigration violators during federal fiscal year 2022.

CBP’s field office in San Diego includes the San Ysidro, Otay Mesa, Tecate, Calexico, Andrade and the San Diego air and seaports of entry.

During the fiscal year, which ended September 30, CBP officers at ports in San Diego and Imperial counties inspected more than 29 million passenger vehicles, more than 1.5 million trucks, almost 19,000 buses, and nearly 16 million pedestrians entering the U.S.

The total amount of narcotics seized during the year at California’s six ports of entry with Mexico decreased 38 percent compared to the previous period. Marijuana seizures decreased 98 percent to 320 pounds; cocaine seizures decreased by 23 percent to 8,790 pounds; heroin seizures decreased 68 percent to 764 pounds; methamphetamine seizures decreased 23 percent to 86,227 and fentanyl seizures increased by 5 percent to 6,704 pounds.

Cannabis Legalization Bill Approved By Colombia’s Senate

Written by Hazel Norman on December 11, 2022. Posted in Policy.

Colombia is home to one of the most favorable climates on earth when it comes to cannabis cultivation. Whereas in other areas the cannabis plant requires supplemental lighting and a buffet of nutrients, in Colombia the cannabis plant grows naturally on a large scale.

Cannabis cultivation is not new to the South American country, which historically has served as one of the top suppliers of unregulated cannabis and other banned substances for the global marketplace, particularly in North America.

Advocates in Colombia have made strides in building momentum for cannabis reform in recent years, and that was on display this week when the nation’s Senate approved a cannabis legalization measure, as first reported by Marijuana Moment:

The Colombian Senate has overwhelmingly approved a bill to legalize marijuana nationwide, though there are still more legislative steps that need to be taken before it’s potentially enacted into law.

The bill, which has also already received initial approval in the country’s Chamber of Representatives, was approved on the Senate floor during the fourth round of debate on Tuesday in a 56-3 vote.

The cannabis reform marathon may not have yet reached the finish line in Colombia, however, this is a milestone that is certainly worthy of tempered celebration. As is the case in politics in any country, nothing is guaranteed in Colombia when it comes to cannabis legalization, and legalization still faces a long road ahead.

Part of the political process in Colombia for a bill of this nature is a series of debates that have to be spread out over time. As a result, it’s quite likely that it may take as long as until 2024 for a bill to be finalized. Even then, any delays in the process would push legalization out even further.

As 2022 draws to a close and we head into 2023 it’s going to be very interesting to see where the cannabis discussion goes, both inside of Colombia’s borders, and beyond.