Germany's recent partial legalization of cannabis has shaken up the industry and moved marijuana stocks. Will it have a domino effect on other European countries? How easy it is for the cannabis companies to jump on this opportunity and establish their presence in the German cannabis market? To find out, we continue our conversation with industry experts such as Dr. Constantin von der Groeben, a managing director of Demecan – the only German vertically integrated medicinal cannabis company; Denise Faltischek, a chief strategy officer and Head of International of a Canadian cannabis giant Tilray Brands
Jrgen Bickel, co-founder and managing director of Canopy Growth's, Germany-based vaporization company Storz & Bickel; and Adam Wilks, CEO of Carma HoldCo. – the global licensing company. In the first part of our conversation HERE, these industry experts shared their opinions on what the reform means, its impact and how the market will develop. "Germany's cannabis reform represents an exciting opportunity for our company and the celebrity brands we work with, and presents a new market primed for growth and expansion," Wilks told Benzinga. "For our company, this reform means an opportunity to further solidify our presence in Europe after TYSON 2.0's opening of a new branded coffee shop in Amsterdam last year, and capitalize on the emerging cannabis industry in Germany. We'll be exploring several avenues to enter this market strategically, leveraging our expertise and resources to establish a strong foothold." Carma HoldCo was already eyeing Germany and conducting market research into the unique dynamic of the market such as consumer preferences and the competitive landscape, Wilks said. "We're also in the process of establishing strong partnerships with local stakeholders, including distributors, retailers and possibly even cultivation partners."
Domino Effect, Harmonization Of Cannabis Laws In EU
Von der Groeben believes that Germany's pivotal reform would inspire other countries. "Germany’s decision to legalize cannabis is likely to have a domino effect across Europe, with other nations observing the economic, social, and health outcomes of this reform," he told Benzinga. "We expect to see a wave of policy reevaluation across the continent, with more countries adopting a more liberal stance on cannabis. This must lead to harmonization of cannabis laws in the European Union, facilitating easier cross-border trade and standardization of quality and safety standards."
Faltischek seconded that thought saying that many countries are already evaluating enhanced regulations for medical and adult-use cannabis.
After all, plenty is happening already with Ukraine's recently legalized medical marijuana to help those suffering from trauma amid war, The Netherlands recently launched legal marijuana as part of a four-year trial, while two recreational cannabis pilot projects in Switzerland reached the sales phase in December. France recently took a step toward the generalization of medical marijuana, and last April, the Czech Republic took a step toward legalizing cannabis sales to deal with addiction problems. In October, Malta, which became the first country in Europe to legalize recreational cannabis two years ago, issued Europe's first-ever marijuana licenses permitting non-profits to grow and distribute marijuana.
Bickel on the domino effect: "We anticipate that neighboring European nations and others worldwide will take note of Germany’s progressive stance, potentially inspiring them to take similar steps towards cannabis legalization."
Wilks agreed, adding that Germany has set up a significant precedent for other European countries and is likely to spark further reforms across the continent.
Opportunities For Cannabis Companies
Faltischek pointed out that even though many companies would like to explore the opportunities presented by the new market, that won’t be as simple as it sounds. "With over 10 years of experience in the international medical cannabis market, we know that it is not easy to just jump into the European medical cannabis market with its high barriers of entry, rigorous quality control standards, and complex regulatory framework," she said.
Bickel focused on the opportunities coming from the potential second pillar of the reform. "Should the government opt to permit the commercialization of cannabis, the landscape may change significantly," he said. "With a population of 80 million and robust purchasing power, Germany stands poised to emerge as the largest European market for cannabis."
Von der Groeben agreed that legalization would serve as a catalyst for many companies looking to expand their presence across Europe, but cautioned that not all of them would succeed. "Success will depend on companies’ ability to navigate diverse regulatory landscapes, ensure product quality, and address societal concerns," he said. "Demecan, with its strong foundation in Germany, is uniquely positioned to expand across Europe. We are ready to leverage our knowledge, infrastructure, and partnerships to capitalize on these new opportunities, always with a focus on responsible business practices and compliance with local regulations.”