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Written by Cannabis Business Insights.

The road to properly regulated medical cannabis in Spain has been long and full of twists and turns. However, the effort to bring Spain’s medical cannabis policies into the modern age passed a major milestone with the nation’s Ministry of Health publishing a draft royal decree focused on medical cannabis.

“After three years of delays, Spain’s Ministry of Health published on Monday 30 September the draft royal decree to allow the prescription of cannabis preparations, a text that will now be submitted for hearing and information before its final approval.” reported Sur in its domestic coverage.

“The draft establishes broad restrictions on the medical use of cannabis and specifies very specifically the pathologies for which it can be used: multiple sclerosis (stiffness and muscle spasms associated with the condition); severe forms of refractory epilepsy (certain types of epilepsy that do not respond to conventional treatments); nausea and vomiting caused by chemotherapy; and refractory chronic pain (persistent pain that is not relieved by the usual treatments). In all these cases, experts believe that there is “scientific evidence” of the benefits of medical cannabis.” the media outlet also reported.

Back in February 2024, Spain started the process of crafting the draft royal decree that was recently published. As we reported at the time, before a royal decree is officially issued, the public is afforded the opportunity to provide input, with Spain’s government having previously set up an email address dedicated to receiving such input ([email protected]).

“The Ministry addresses this regulation based on the conclusions of the Subcommittee of the Congress of Deputies for the analysis of experiences with the regulation of cannabis for medicinal use, which called on the Spanish Agency for Medicines and Health Products to prepare a roadmap to approve the regulation.” Spain’s government stated in a press release (translated from Spanish to English) at the time.

“The proposed regulation guarantees the quality of the products and the safety of patients, enabling the legal avenues available to have therapeutic compounds based on standardized cannabis preparations that have shown evidence in relieving pain and the suffering of patients, considering the oral administration of these compounds as it is the most appropriate in terms of therapeutic effectiveness and safety for patients.” the government’s press release stated.

“This regulation is designed to evolve dynamically, allowing new elements to be incorporated as more information and the experience of the therapeutic cannabis program becomes available. In addition, it will contribute to generating more and better evidence on the use of cannabinoids for therapeutic purposes.” Spain’s government also stated.

Despite the lack of proper regulations in Spain, the nation’s cannabis industry is thriving, albeit not within a regulated system. Suffering patients deserve to have safe access to safe medical cannabis therapies, and entrepreneurs and investors deserve to operate in a business environment that is built on a strong foundation of certainty.

Written by Hazel Norman on October 8, 2024. Posted in Policy.

The emerging cannabidiol (CBD) nutraceuticals sector is expected to experience tremendous growth through the remainder of this decade, with a recent report by Research and Markets projecting that the CBD nutraceuticals market alone will be worth an estimated $29.1 billion by 2030. The market analysis estimates that the CBD nutraceuticals market is worth $9.7 billion in 2024.

“Worldwide, the market for CBD Nutraceuticals is poised to record an above-average growth over the analysis period, the crucial reasons for which are the increase in demand for plant-based foods, growing awareness concerning benefits of CBD nutraceuticals, innovative products in the pipeline and CBD nutraceuticals in capsule & softgel forms undergoing further advancements.” the researchers stated in their analysis.

“North America represents the primary global market for CBD Nutraceuticals, the reasons for which include introduction of the 2018 Farm Bill that legalized hemp cultivation and processing of hemp-derived products, demand from consumers after getting to know the benefits of CBD-based Nutraceuticals, major companies active in the region and a significant rise in geriatric population.” Research and Markets stated.

“Asia-Pacific, though, is anticipated to be the fastest growing global region for CBD Nutraceuticals, factors for which comprise entry of leading global players, an increase in lifestyle-associated diseases & other health disorders and greater knowledge pertaining to healthier eating routines.” the market researchers also stated.

“CBD Oils account for the largest share, as they have great versatility in being used in a range of applications, such as capsules, tinctures and cosmetics. However, the global demand for CBD Isolates is likely to maintain the fastest growth, since these are considered to offer high purity, making them ideal as CBD formulations in products that need exact concentrations of CBD.” the researchers stated about subsectors of the market.

“A high demand has been evident for CBD Tinctures, since they widely utilized in treating insomnia, cancer cell growth, seizures, anxiety, depression and chronic pain, as well as hyperglycemia, muscle spasms, psychosis and bone degeneration. However, the demand for CBD Capsules & Softgels is expected to exhibit the fastest growth over the analysis period, since they are more convenient to consume and are also travel-friendly.” the researchers concluded.

A previous market analysis conducted by Market Research Future estimated that the global CBD industry was worth $18.43 billion in 2023 and that the market would reach a projected $59.43 billion by 2030.

Written by Hazel Norman on October 8, 2024. Posted in Business.

Germany recently approved a draft law previously presented by the Federal Minister of Food and Agriculture Cem Özdemir. The approved measure liberalizes industrial hemp in Germany and is intended to make it easier to cultivate industrial hemp and permit its use.

As part of the measure, the ‘abuse clause’ will be deleted and the indoor cultivation of industrial hemp will be expressly legal.

“Especially in times of climate crisis, we are removing obstacles from the path of farmers who want to try something new in their fields or in their halls. Industrial hemp offers our agriculture many opportunities: It contains hardly any THC, which causes highs, is undemanding, requires hardly any pesticides, fertilizers or water, improves soil and provides a habitat for insects.” Minister Özdemir stated.

“The harvest can be processed in a wide variety of ways, from food to textiles. The abuse clause criminalized actually innocent industrial hemp growers despite their best intentions. Now it is finally time to let the grass grow over it. And a lot of it, if possible, so that the innovative scene of industrial hemp growers and processors can continue to develop in Germany too.” Minister Özdemir also stated.

The German Cannabis Industry Association (BvCW) welcomed the central elements of the reform in its recent newsletter.

“Until now, even the theoretical possibility of a slight intoxication through the private consumption of large quantities of products has led to the entire value chain being punishable. This special German regulation is now being abolished.” BvCW stated about the recently approved measure.

“We are finally freed from these unnecessary hurdles. This is a major political step forward for industrial hemp and will contribute significantly to the growth of the industry.” Marijn Roersch van der Hoogte, Department Coordinator for industrial hemp at BvCW, stated.

“We are pleased about this important step and will actively support the further parliamentary process.” Jürgen Neumeyer, Managing Director of BvCW, commented.

BvCW pointed out in its coverage of the approved hemp measure the need for further hemp policy and regulatory changes in Germany, including raising the THC limit from 0.3 to 1.0% and providing funding and standardizing measurement methods for cannabinoid values.

“After the legalization of cannabis as a recreational drug, there is no longer any reason for many restrictions on the cultivation of industrial hemp. The Industrial Hemp Liberalization Act removes hurdles for hemp cultivation. In the parliamentary process, we will take a close look at whether the law is sufficient or whether it still needs to be improved. The potential of the plant as a supplier of oil and fiber is enormous. We should use it.” Karl Bär (The Greens) told BvCW.

Written by Johnny Green on October 2, 2024. Posted in Policy.

A German pharmaceutical company says it will be partnering with Canadian cannabis nursery Mother Labs to bring a line of branded cannabis flower to the German medical market.

ADREXpharma is a licensed wholesale distributor of controlled drugs and medical cannabis serving most of Germany’s 20,000 pharmacies. New legislation that came into force on April 1, 2024, removed medical cannabis from the German narcotic list, making access easier for Germans seeking to access cannabis for medical purposes.

Cannabis for medical purposes is available at pharmacies in Germany by prescription. Several Canadian cannabis companies have entered the German market in recent years as the country’s medical cannabis program has expanded, increasing demand for products.

In 2019, ADREXpharma announced a deal with Canadian cannabis producer MediPharmm Labs to supply cannabis concentrate derivative products, including THC and CBD oil, to the German market. Earlier this year, the German pharmaceutical company announced a similar deal with a Danish medical cannabis producer to supply cannabis oil through ADREXpharma.

This newest collaboration with Canadian cannabis company Mother Labs will help meet the evolving demands of the German cannabis market, says Nicole Broockmann, CEO of ADREXpharma.

“This partnership represents a significant milestone in our mission to provide German medical patients with the highest quality cannabis products. Mother Labs’ advanced genetic development capabilities perfectly complement our distribution and regulatory expertise. Together, we will bring a product to market that meets the highest standards of quality and consistency.”

The new “Mother Labs” branded cannabis flower is expected to soon be available in German pharmacies.

“We are excited to bring our advanced genetics to Germany in partnership with ADREXpharma,” said Brian Bain, CEO of Mother Labs. “Our purpose-built facility, with dedicated pheno-hunting space and comprehensive storage via our TC lab, allows us to rigorously test all genetics in-house for a minimum of 72 weeks before release. This precision process ensures that only the highest quality, stable, and unique genetics make it to market, reinforcing our position as leaders in genetic innovation.”

Bain told StratCann that the first run of genetics Mother Labs will provide into the German market will be Beta808 (Slurricane x Chatterbox) and Garlic Funk (First Class Funk x GMO). The second will be Tangerine Skies (Wedding Cake x Banjo), Orange Drink, King Z, and Flawless Victory (Ice Cream Cake x Cherry Cheese Cake). Mother Labs bred all of these cultivars, Bain says, except for Orange Drink.

“Over the past year or two, we’ve made significant strides in securing tighter control over our intellectual property, particularly our unique genetics. Rather than broadly releasing certain genetics in the Canadian market, we’ve been selective, tightly controlling which cultivators are initially proving out these genetics domestically and tightening up our terms around domestic and international sales. This approach ensures we maintain the strongest possible grip on our IP as we expand globally.”

Germany has become one of the newest countries to see a ramp-up of cannabis imports from Canada, with brands and producers either teaming up with local companies like ADREXpharma or through their own footprint in Germany, like Aurora and Tilray.

October 2, 2024 | David Brown

A new review published in the Journal of Applied Health Economics and Health Policy examines health care costs in US states that adopted medical cannabis laws. The authors say there was a “significant” decrease (3.4%) in the average total premium per employee for single coverage plans per year in those states that allow some form of medical cannabis access. 

As awareness of the therapeutic potential of cannabis grows, employers must adapt their benefits to reflect this evolving understanding.

Emily Fisher, CEO & founder of Leafwell

The researchers compare these costs with states without state-legal access to medical cannabis, concluding that if all people in all 50 states had legal access to medical cannabis, employers and employees could collectively save billions on healthcare coverage, potentially reducing healthcare expenditure’s contribution to GDP by 0.65% (based on 2022 figures).  

The paper estimates that employers and employees could see combined savings of $14.9 billion a year for single coverage plans if all 50 US states had legal access to medical cannabis.   

In 2023, the US had around four million people registered to access cannabis for medical purposes across 38 states. The paper speculates there are likely many more than that who are not captured through registration as not all states require it. 

Researchers say the impact of these changes on private health insurance costs can be seen just five years after a state’s medical cannabis laws come into effect. The paper argues that one reason for the savings is that cannabis, which is often not covered by insurance providers, is often used instead of medications like opioids that are covered by those insurance plans. 

The paper also cites research showing that those who use cannabis are more likely to exercise, that cannabis users have lower BMI, and that cannabis use can lead to less alcohol use. 

This study looked at five different outcomes, the total average premium costs per employee for single family and employee-plus-one health insurance plans, and the total average deductible costs for single and family health insurance plans.

In addition to the 3.4% decrease in the average total premium per employee for single coverage plans per year in those states that allow some form of medical cannabis access, researchers noted a 2.5% decrease in the average total premium cost for employee-plus-one coverage plans. Other plans did not show a similar decrease.

The four researchers who compiled the paper are all employees of and hold stock or stock options in a company that connects medical cannabis patients to physicians called Leafwell. No Leafwell data were used as part of their analysis. 

“Cannabis has been shown to offer significant relief for various conditions, from chronic pain to mental health issues, and ensuring access through insurance can profoundly impact the well-being and productivity of employees,” said Emily Fisher, CEO & founder of Leafwell, in a company press release. “As awareness of the therapeutic potential of cannabis grows, employers must adapt their benefits to reflect this evolving understanding.”

September 18, 2024 | Sarah Clark | Cannabis News, International, Research

The cannabis industry continues to have numerous opportunities available across Canada and internationally. Whether you’re looking for a role in production, management, retail, or finance, there are positions open for a variety of skill sets. Below is a list of some of the current job openings in the cannabis sector.

Adecco is actively hiring several Production Associates for a client in Smiths Falls, Ontario. This role is ideal for those looking to gain hands-on experience in cannabis production.

Canopy Growth has nine positions open across Ontario, Manitoba, and even Germany. These roles span various departments, providing opportunities for professionals with different skill sets.

After some financial restructuring earlier this year, BZAM is again on a hiring spree with 12 positions open in Ontario and BC.

High Tide has dozens of positions open in numerous locations across Canada, as well as for an Operations Manager in Berlin, Germany.

Fika Cannabis is hiring for several Fire and Flower locations in Canada, including one in Whitehorse, Yukon as well as at several Fika Cannabis stores in Canada.

Route 1 Sales Agency is on the lookout for a Sales Representative in Edmonton, while Aurora Cannabis is hiring across multiple categories such as Operations, QA and Supply Chain, Accounting and Finance, and Science and Innovation. 

Decibel Cannabis Company is looking for a Financial Analyst in Calgary, AB, and Cronos Group is looking for people to fill several roles in Finance, Legal and Regulatory, Quality Assurance and Quality Control, Sales, R&D and more.

The Ontario Cannabis Store also has several current postings, including a Software Engineer, a Senior Finance Manager, a Financial Systems Manager, a Master Data Specialist, a Senior Manager, Business Architecture, and several other roles.

Auxly Group is hiring for several positions, such as Commercial Planning Analyst, Production Technician, Cultivation Assistant, and more.

One Plant Canna in Kingston, Ontario, is hiring a full-time Keyholder.

The BC LDB is looking for an Assistant Store Manager at its Langley, BC, Cannabis store.

BC is hiring for several cannabis-related positions, from a Wholesale Category Manager to BC Cannabis Store Managers to a Senior Investigator with its Community Safety Unit.

KJ’S Best Cannabis, a cannabis retailer in Mission, BC, is hiring an Inventory Control Supervisor.

AtlantiCann Medical Inc. is looking for a trimmer in Nova Scotia.

Sophia’s Garden (Artisan) Inc., a cannabis producer in Thunder Bay, ON, is hiring a Quality Assurance Manager. 

Leaf Infusions is hiring a Production Supervisor at its processing facility in New Westminster, BC.

A cannabis producer in Montreal, Quebec, is looking for a VP of Operations to join their growing team.

Freedom Cannabis is hiring a Priva Technician at its facility in Acheson, AB.

Toke House retail store in Dryden, ON has an opening for a Cannabis Store Key Holder Position. 

Les Entreprises C-Médical is hiring a Technicien culture de cannabis and a Journalier at its facility in Mirabel, QC. 

Cannabis NB has around ten open positions it its stores.

Circle K is hiring a Part-Time Budtender in Paradise, Newfoundland. 

And finally, in our September list, Truro Cannabis is looking for a Regional Sales Manager (Atlantic).

With so many positions available across Canada and internationally, now is a great time to explore new career opportunities within the cannabis industry whether you’re just starting out or looking to make a career change.

Stratcann | September 2, 2024 | Staff

Cannabis sales bounced back in New Brunswick in the three months that ended June 30, 2024, following seasonal declines in the previous quarter from January through March. 

Total product sales in the province for the quarter were $24.7 million, up 12.6% compared to the same quarter in the previous year. The provincial cannabis agency also brought in $5.9 million in net sales, up 15% from the same period in 2023.

Cannabis sales have continued to increase in the province annually, with consistent spikes in Q2, covering July, August and September, and declines in Q1, covering the first three months of the year.  

Cannabis NB operates 27 stores in 18 communities in the province, along with nine private stores since the province began allowing them in 2023. There are also six cannabis farmgate locations in New Brunswick that allow cannabis producers to have a retail store on-site. 

The agency’s 2024-2026 strategic plan says legal cannabis sales in the province have been approaching about 50% of the total cannabis market and includes plans to increase the number of retail outlets and products available, as well as exploring on-site consumption and customer loyalty programs. 

Competition in the market has helped to bring prices down, continues the report, noting that while some of the big LPs are “struggling and trying to recover from over-investing” in incorrect market assumptions, “many new LPs and micro-producers are being licensed that have learned from the challenges at launch, and are approaching the industry with better information and a more sustainable plan.”

The organization also plans to establish a comprehensive loss prevention program to reduce risk. A Cannabis NB employee was recently charged with stealing more than $5,000 worth of products and cash. The case has been adjourned to September 6.

Stratcann | August 20, 2024 | David Brown

While the beginning of cannabis legalization in Canada was characterized by a surplus of product, many in the industry now say that trend has been shifting to a shortage in recent months.

This is good news for cannabis growers, as it means having more leverage on the market, putting brokers and third-party processors in a less-than-ideal position for potentially the first time.

Jacquie Trombley, director of sales, marketing, and product development at Agmedica Bioscience Inc. in Ontario, says she has seen a significant shift in 2024 from a buyer’s market to a seller’s market.

“There’s been a significant shift to 100% cash up front and we’re getting it! Before the product leaves our facility.”

Jacquie Trombley, Agmedica Bioscience Inc

Agmedica sells in Canada’s medical and non-medical markets, both under their own brands and in the B2B market, and exports to international markets.

“Historically, we would usually have at least some inventory in our vaults, but right now the majority of the requests we receive for product go unfilled,” explains Trombley. “We get asked for product pretty much every day, and we cannot meet the demand.”

This is in part because of the increasing demand of the export market, she says, but it’s also the result of the number of cannabis producers closing up shop. Some struggling producers who might have been desperate to move products at a discounted rate are now out of the market, and, over time, this benefits those who have been able to stick it out.

This is reflected by the increase in price for not only top-quality flower, but also the rise in price for smalls and trim, which generally aren’t making their way to the international markets.

“Pricing has come up dramatically,” she continues. “We used to sell A [grade] flower for what we’re selling B [grade] flower for now. B flower and trim pricing has probably doubled.”

Another big turn, says Trombley, is payment terms for growers who are selling to processors, something that is arguably more impactful than the price increase, where various consignment deals and terms have been common for growers in the first few years of legalization, meaning full payment might not have been provided for some time after product had sold in a provincial market.

“We are no longer offering terms to B2B domestic buyers because you just might not get your money,” she continues. “There’s been a significant shift to 100% cash up front and we’re getting it! Before the product leaves our facility.”

This is a big deal for small growers who are struggling to keep the lights on.

“Right now, I think some of those smaller companies absolutely can demand cash up front right now, or at least improved payment terms.”

Steve Clark, founder of the Canadian Cannabis Exchange, says the issue is something many in the industry have been discussing this year.

“We are seeing domestic supply shrinking in a number of ways,” says Clark. “The closures of growing facilities and reduction of square footage of canopy in Canada. The companies who were producing for their own internal supply in these facilities have flipped from net sellers to net buyers, (further taking supply off the market), and the pull from export into intensive markets is reducing overall flower availability.”

​​Michael Gorenstein, president and CEO of the Cronos Group, another cannabis company that sells domestically and in international markets, made similar comments on a recent quarterly report earnings call.

“We’ve really seen a huge shift in the supply dynamics where we’ve had significant oversupply in the past,” said Gorenstien.

Although he says he still believes there is a large supply of low-quality cannabis flower in the market, this isn’t necessarily a product with much market demand. Quality cannabis, he says, is a different story.

“As we said in the past, there’s a difference between available cannabis inventory and available inventory that’s sellable as quality flower,” continued Gorenstien. “While there’s plenty of the former, there is now a shortage of high quality desirable flower that is sellable to consumers in Canada.”

The company’s most recent quarterly report also noted: “We are anticipating shortages in raw materials and may be unable to obtain adequate supplies of raw materials in a timely manner and at commercially reasonable prices.”

Stratcann | August 19, 2024 | David Brown

The legal German cannabis market is projected to reach an estimated $4.6 billion in value by 2034 according to a new market analysis by researchers at The Niche Research. The market analysis predicts that Germany’s legal cannabis market will experience a compound annual growth rate (CAGR) of 17.2% between 2024 and 2034.

Germany implemented the first provisions of its national adult-use cannabis legalization law on April 1st, and the home cultivation sector is already increasing in size at an exponential rate. According to a recent survey by Pronova BKK, 51% selected “Yes, I can imagine having my own cannabis to grow at home” when asked about home cultivation. Another 40% of ‘occasional’ cannabis consumers also selected that option in the survey.

A separate survey by YouGov found that 7% of surveyed German adults have already purchased cannabis seeds or clones, and another 11% reported that they will in the future. Cannabis seed banks across Europe have reported a significant sales spike due to German home cultivation legalization.

Medical cannabis was already a huge industry in Germany prior to adult-use legalization, with the country being home to Europe’s largest medical cannabis market. However, part of the CanG law involved the removal of cannabis from Germany’s Narcotics List, and with it, caps on domestic medical cannabis production. Germany imported a record 32,398kg of medical cannabis products in 2023, up 26.6% from 2022.

One could easily argue that the biggest winner of German recreational legalization so far is the nation’s medical cannabis industry. Doctors can more easily prescribe medical cannabis in Germany thanks to the CanG law, and the medical cannabis supply chain is more streamlined than ever. The changes are expected to boost Germany’s medical cannabis base from 0.03% to 1% of Germany’s population in the coming years.

Previous projections for Germany’s emerging cannabis industry include one by Heinrich Heine University Dusseldorf which estimated that adult-use legalization will create 27,000 new jobs in Germany, although that projection may prove to be too conservative as time goes along.

Consider the fact that North Rhine-Westphalia alone is planning on permitting up to 3,000 social cannabis clubs, each able to serve up to 500 members. Every one of those social clubs will create jobs, and that is just one sector of the industry in one region of Germany. If the nation’s medical cannabis industry continues to surge as social clubs and regional pilot projects launch this year, the economic potential of Germany’s emerging industry will be enormous.

Germany’s cannabis industry is currently estimated to be worth nearly 1.2 billion euros according to Euromonitor International. Euromonitor estimates that the emerging global cannabis industry is currently worth 51.4 billion euros, with that figure estimated to top 60 billion in 2025.