Leaked Cannabis Legalization Details Suggest ‘Cannabis Light’ Approach By German Government
After several months of speculation on the prospective details of German cannabis legalization, the wait in almost over. At 11:30am local time on April 13, Federal Minister of Health, Dr. Karl Lauderbach, and Federal Minister of Food & Agriculture, Cem Ozdemir, are expected to provide details on how the domestic legal cannabis framework will look. However, if reports from this credible source are accurate, this ‘cannabis legalization light’ approach may come as a disappointment to those expecting a more liberal launch.
According to respected veteran MJBizDaily journalist Matt Lamers, legislators will not be opening the spigots like they did in Canada—at least not out of the gate. In fact, in comparison, the policies look downright restrictive—assuming leaked details cited by Mr. Lamers source are accurate.
TDR breaks down what each stipulation would mean to a Germany’s nascent domestic cannabis market.
No Nationwide Stores
This prospective stipulation is rather self-explanatory. If a retail industry has no stores nationwide in a particular country, it means the industry does not have any physical retail stores located throughout the entire country. That doesn’t preclude the cannabis industry from having a presence in certain regions or cities. But distribution will be somewhat limited versus a pure free market model.
Licensed Shops In Regional “Trials”
Such a stipulation would mean the industry can open a limited number of stores in select regions of the country—perhaps under a licensing agreement. This may be part of a larger government strategy to test the market and assess consumer demand before making larger investments in expanding an industry rollout.
The regional trial approach can be an effective way for a retail industry to test different markets and gain insights into local consumer preferences and behaviors. This can help the industry refine its products and services to better meet the needs of local consumers and improve its chances of success when expanding further into the country.
However, it does suggest the government is taking a cautious approach to expanding operations in the country—although still committed to exploring new markets and opportunities for growth.
Study Carried Out After 5 Years On Illicit Market
This prospective stipulation simply means that means that the company will conduct a study or analysis to assess the impact of illicit markets on its business in that country after a period of five years. Illicit markets refer to the sale of goods and services through unofficial channels, such as street vendors or unlicensed shops, often involving the sale of counterfeit or illegal goods.
A study may be conducted in response to concerns about the impact of the illicit market, an industry’s sales and profits, or as part of a broader effort to understand the local market dynamics and consumer behavior in the country.
Cannabis Social Clubs
This prospective stipulation means that the government is committed to allowing legal establishments where adults can gather and consume cannabis in a social setting. These clubs are typically members-only and may require individuals to apply for membership in order to enter.
Cannabis social clubs are a relatively new concept that have emerged in some countries where cannabis has been legalized or decriminalized for personal use. The clubs provide a safe and legal space for adults to consume cannabis, and also offer a social environment where members can meet and interact with other cannabis users.
However, such clubs are not traditionally a significant driver for cannabis product sales, as members form a small percentage of overall cannabis users in countries where such clubs legally operate.
25g Possession & Cultivation Of Three Plants
These prospective possession limits are relatively inline with some mature recreational cannabis states in the U.S. For example, adults over the age of 21 can possess up to one ounce (28.5 grams) of cannabis flower—or up to eight grams of cannabis concentrate—in California and Nevada. While the possession limit increases is double that amount of more in Colorado and Michigan.
While Germany’s prospective cultivation limit of three marijuana plants is conservative compared to U.S. norms, with California, Colorado and Nevada all allowing six plants per household. In Michigan, adults over the age of 21 can grow up to twelve cannabis plants per household for personal use.