Adult-Use Legalization in Germany

Starting a Cannabis Business in Germany: What to Know and Do Now

 

Germany is going through the process of adult use cannabis legalization and through being on the ground in Germany, we are able to look at the most up to date information and plan accordingly. Fresh from cannabis conferences in Berlin and Hamburg, our own Brian Hart provides insights to how the German market might unfold and what steps cannabis entrepreneurs should take now.

 

What We Know:

We know the Ampel Coalition is working on a white paper that will be ready by the end of 2022. Linda Heitmann, a member of the Green Party in German Parliament, spoke at Hamburg’s first International Cannabis Conference (HAMCAN) on July 9th. At her presentation, she confirmed the white paper is being worked on and that it is the current coalition government’s plan to vote for adult-use cannabis by May 2023.

In addition, Burkhard Blienert gave the keynote speech on July 19 at the Berlin International Cannabis Business Conference (ICBC). Mr. Blienert is the German Drug Commissioner for the Federal Ministry of Health and was also a member of Germany’s Parliament. He echoed the same sentiments as Ms. Heitmann at Hamburg and affirmed the government is working on the white paper and would like to vote on federal cannabis legalization before the summer of 2023.

 

What We Suspect:

We suspect Germany will switch to a cannabis distribution model similar to states in the United States, where consumers can purchase cannabis at dispensaries.

Currently, Germany has a system where a patient is able to go to a pharmacy to pick up their cannabis prescription. When adult-use legalization occurs, it seems unlikely consumers will go to pharmacies to purchase cannabis as an argument can be made that the volume of consumer demand may disrupt day-to-day pharmacy operations. As cannabis will not only be used for medicinal benefits, it is likely cannabis will be sold at dispensaries to accommodate adult use. This means a whole new industry will be available and having this knowledge now can help you prepare for later.

 

What We Can Prepare For:

We can prepare for planning operationally and financially for a business, as well as getting a license. While the German government is figuring out what the process of getting a license will look like, individuals can prepare for how they will run and start their business and a plan will better suit them to getting a license. For example, planning for a location that would not be in a potential prohibited area or knowing what kind of point of sales system to use along with understanding what the start-up costs would be. This is an advantage Canna Advisors can provide. We assist clients with business planning, compliance with laws and regulations, and getting cannabis licenses. Let us know if you are interested in our specialized help!