Earlier this month, Colorado cannabis producer Herbal Wellness LLC recalled dozens of batches of cannabis due to positive yeast and mold tests. The Colorado Department of Public Health and Environment (CDPHE) issued a health and safety advisory following the news of microbial contamination.
The Colorado Department of Revenue then identified batches of both medical and recreational cannabis produced by Herbal Wellness that were not even tested for microbial contaminants, which is a requirement for licensed producers in the state. Just a few days later, the Denver Department of Public Health & Environment (DDPHE) issued a bulletin announcing their plans to conduct random tests at dozens of dispensaries.
“In the coming weeks, the Denver Department of Public Health & Environment (DDPHE) will be conducting an assessment in approximately 25 retail marijuana stores to evaluate contaminants in products on store shelves,” reads the bulletin. “DDPHE has worked with epidemiological partners at Denver Public Heath to create the assessment methodology. Participating stores will be randomly identified for inclusion in the assessment.”
“Current METRC inventory lists for each store will be used to randomly identify samples of flower, trim/shake, and pre-rolls. Each sample will be tested for pesticides and total yeast and mold by a state- and ISO-certified marijuana testing facility. Results of their respective testing will be shared with each facility and will also be shared broadly within a write-up of results.”
Everyone knows that the packaging of your cannabis product creates the first impression for a potential customer. However, product packaging is sometimes an overlooked detail for new and existing cannabis businesses. The packaging design for your cannabis product is vital to establishing your brand and building a loyal customer base. Packaging impacts your product significantly: it must keep your products safe and secure, but it also has to help you increase your sales volume and bottom line. Ultimately, a well-executed and managed brand translates into increased profitability.
Today, plastic HDPE, LDPE, PP and PET bottles and closures are widely-accepted packaging options for cannabis products. Plastic packaging offers abundant choices, but how do you know which plastic bottle and closure is right for your product? Here is a checklist that will help you create packaging that hits the target.
Know Your Competitors
Do your research and check out the competition. What are other cannabis companies doing? What type of plastic packaging do they use and is it high quality? What is their message and are they consistently branding their packaging across all product lines? How can your cannabis packaging stand out and attract attention? This knowledge will help you to define your brand and how you can differentiate your cannabis products from your competitors with the right packaging.
Appeal to Your Target Audience
Your cannabis products can’t fulfill the needs of all consumers, so define the type of consumer you are trying to reach. Tailor your message to the specific groups that meet your brand’s criteria. Consider demographics such as lifestyle, age, location and gender. Also consider what is important to them. For example: is your target audience concerned about the environment? If so, consider plastic packaging alternatives such as Bioresin. Polyethylene produced from ethanol made from sustainable sources like sugarcane, commonly known as Bioresin, are becoming more common. Bioresin bottles have the same properties and look the same as traditional plastics, so it is easy to convert. Defining what speaks to your target consumer will help you determine which plastic packaging option to choose for your cannabis product.
Convey Your Message to Consumers
How do you want consumers to perceive your cannabis product, company, and values? What expectations will it meet? Take Coca-Cola for example. It’s an instantly recognizable brand because of consistent use of the same style and color packaging, along with a universally-appealing message of refreshment, taste and satisfaction. Coca-Cola’s messaging has remained consistent over decades and it fulfills the expectations of consumers – they know exactly what they’re getting when they purchase it.
The message on your cannabis packaging should reflect your company values, fulfill customer expectations and of course, be eye-catching and promote the product inside. Packaging should also convey your brand information consistently and across all product lines. Consumers will become accustomed to your brand and will trust your products.
Make Your Product Stand Out
Once your brand message is defined, you can move forward with selecting the right plastic packaging. There are many crucial points to consider in the selection process. For example, if providing the freshest products to the consumer is critical, then select plastic bottles and closures that ensure your product does not become stale or contaminated. If protecting consumers is part of your brand message, then select bottles and closures that meet federal and state regulations for child safety, that are manufactured with FDA-approved materials, and that meet ASTM certifications.
The product branding process can be intimidating. Overcome your fears by working with a plastic packaging manufacturer that fits your needs. Sometimes an off-the-shelf HDPE bottle or plastic closure just won’t do. Unique bottle shapes, the use of colored resins, and switching to plastic packaging made with sustainable materials are options that will showcase your cannabis product and help increase visibility in the marketplace. Look for a plastic manufacturer with diverse capabilities and packaging ingenuity. A manufacturer that offers a diverse product line and also can develop customized bottles and closures to your exact specifications and appearance will be a great asset to you. They can guide you through the process to ensure that you get a product that will help differentiate your brand and make your product stand out.
Follow Through
Consistent and targeted branding based on thorough research is a proven approach to creating a strong brand. When your brand message is applied to all of your plastic packaging across your cannabis product lines, a stronger and more recognizable brand is created. Remember to follow through with your brand messaging across all other channels of communication such as: print advertising, signs at your business’ location, on your website and through your online marketing efforts. Your sales and customer service staff should also reinforce your brand message when meeting with customers and prospects. A thoughtful and well-planned strategy for your brand will help increase sales and grow your new start-up or established cannabis business.
Chances are if you follow the European cannabis scene, particularly out of Germany, that you might have heard of a firm called Farmako. They have certainly, in the three quarters or so they have been in business, been given a lot of “good press.” They certainly worked hard to get into the headlines.
The problem is that no matter how scintillating initial claims were to many members of the media if not industry beyond, the bloom was quickly off the rose in the same circles. Since at least March, these grumbles have earned the company increasingly bad press. Industry insider complaints and background knowledge also began appearing in places like Manager (a top German business magazine), Vice and Business Insider Germany. Behind the headlines and insider quotes, however, quite a few people are admitting, even if off the record, that while initially impressive enough to be believed – at least on the surface – most of Farmako’s claims have panned out so far to be just hot air. And there have been a lot of them, not only from the sourcing perspective but also from the research, scientific development and certainly tech fronts.
The rebutting, editing and confronting of which has also set off a round of really bad press.
Further, apparently even the embarrassing fallout (and of course resulting reorganization) is not what it seems to be. Which of course has also been described so far publicly by the Frankfurt-based company itself, and Berlin-based tech funder, Heartbeat Labs. The former of which are so far unsuccessfully walking back just about every claim made over recent months. The latter of which has a great deal of embarrassing egg on its face on the compliance front.
When reached for comment by Cannabis Industry Journal, Heartbeat Labs responded via email that they had none.
While Farmako is struggling to regain the confidence of the industry if not regulators and appears to be trying to hang on to its distribution license, the story itself is also illustrative of many of the failings of the so-far establishing cannabis industry. In Germany and elsewhere. Coming as it does within the summer of scandal involving both larger companies and start-ups, bigger questions about industry practices, in general are in the room. If not the backgrounds of those boasting about “industry experience” (or even worse when caught, “oops I have none, really”). Highly stereotypical fixes so far have also not helped.
Everyone makes mistakes in a world where everything is new and one where the regulations are constantly changing. The problem with Farmako in particular, is that there were so many.All the bragging in the English and German language press had consequences.
The Story So Far
Farmako made headlines earlier this year when they issued a press release claiming that they had inked a deal to “import 50 tonnes of cannabis from Poland.” They further claimed, when contacted by CIJ that they stood by the story. At this point, their claims were clearly about a future delivery. However, Farmako CEO Niklas Kouparanis then embellished further on Bloomburg. Kouparanis claimed that they were already distributing product from Macedonia.
The reality of course was nothing of the sort. While Farmako was distributing product it had sourced from other places, no Macedonian product had ever crossed the border. But as May rolled into June, it was clear that there was something else afoot. All the bragging in the English and German language press had consequences. The German press had a field day with the storied and very colourful past of both Farmako founders. The regulatory agency, BfArM conducted an investigation. Kouparanis was out by the beginning of July.
Producers Do Not Trust Them
Cannabis industry insiders (both producers and distributors) who contacted CIJ about this story, but wished to remain off the record, confirmed that many producers who had initially heard of the firm in both Poland and Macedonia, in particular, were distancing themselves from Farmako. But the stories were not limited to Eastern Europe. In the UK, where Farmako had used a chunk of its investment from Heartbeat Labs to also open a London office, cannabis professionals expressed scepticism of almost all of the company’s claims including not just sourcing, but on the tech and R&D side. One senior executive in the Canadian industry said on deep background that he was tired of the lies from Diemer in particular, and never wanted to speak to anyone associated with the company ever again.
And clearly all was not well within Farmako itself, no matter the constant cheery optimism, if not “shucks we didn’t know” attitude of all involved when actually confronted or questioned about their behaviour – and or statements – particularly to the press.
What Has Been The Upshot To Date?
Kouparanis may be history but Diemer remains with the company. Although Heartbeat Labs claims this has nothing to do with the subsequent company re-org and Kouparanis’ departure, insiders in the industry claim otherwise. Further, several also suggested that any attempt on the part of Farmako to enter into contracts until July was fundamentally compromised by the actions of Farmako execs themselves.
Diemer certainly, has been remarkably candid at least in review about one aspect that most in the cannabis industry who have encountered him so far agree with. He has come clean in interviews that he knows very little about the legitimate cannabis industry. Perhaps that is also why he has continued to claim that there is no crisis at the company.
Both statements of course also raise questions about why he is still there.
The company is still in business although apparently finding it very difficult to source product.The appointment of a new CEO, Geschäftsfüherinen– a female and first head of any kind of cannaspecialist distribution company auf Deutsch, Katrin Eckmans is also interesting. Eckmans makes her apparent cannabis industry debute with a professional background that includes ex-im at Frankfurt airport, after the quick departure of Kouparanis. Particularly given that he co-founded the company with Diemer after leaving a year long stint at Cannamedical (the second indie cannabis specialty distributor in Germany, established in 2017 by David Henn). And she is apparently being hired for both complementary experience and her gender (which while refreshing in a still male dominated industry is widely also regarded as at this point fairly easy-to-spot window dressing conveniently proffered to regain confidence of investors if not customers in a gender-friendly twist when a company or organization hits an existential crisis).
Calling in even a highly competent if inexperienced in the cannabis niche woman, in other words, even in this industry, does not necessarily “fix” things. This goes from company culture to critical relationships within the industry (upon which distributors like Farmako depend on at this point).
For now, at least, Farmako, and its financier in Berlin appear to have deflected criticism of their efforts although those who have had interactions with the staff are placing bets on when the doors in both Germany and the UK will shutter.
Farmako’s detractors may yet also lose such wagers. The company is still in business although apparently finding it very difficult to source product. Not, in this case because they cannot find it – but rather because producers are flat out refusing to work with them.
In the meantime, particularly other German canna specialty distributors are taking a lesson from this story. If Farmako survives, in other words, it will do so by overtaking the competition that has sprung up all around them – which is not only unburdened by the baggage, but is also determined not to make the same mistakes.
Astroturfing is the practice, in political messaging and campaigns, of creating what seems to be a legitimate, grassroots inspired campaign that is actually bought and paid for by an industry lobby or other corporate interests.
It is also clear that this practice is now entering the cannabis space, certainly in the UK.
How and Where?
On August 1, the British Conservative Drug Policy Reform Group sent out a group email entitled “Strategic litigation on medical cannabis access in the UK.” The email, from the group’s senior communications manager, was to announce the kick-off of a crowdfunding campaign to defend a cannabis patient.
It’s beneficiary? A British female MS patient, Lezley Gibson, now facing prosecution for growing her own cannabis after being unable to afford what was on offer at her local pharmacy.
Here is the first flag: MS is the only condition for which Sativex (manufactured by British firm GW Pharma) is prescribed on label (in other words without special approvals).
The problem is that the NHS (along with most of the German statutory approvers) feels that Sativex is still too expensive and not effective enough. And that problem won’t be solved with either patient home grow access or a lawsuit to gain that right, but rather funded trials.
However, more disturbingly, the email referenced the supposed success of a similar legal tactic in Germany several years ago. This is to say it used a highly inaccurate analogy. In Germany, a male chronic pain patient sued the government for the right to grow his own cannabis. He won the right temporarily, but this was taken away from him after the law changed in March 2017. Now he, like every other cannabis patient in Germany, must get his cannabis from a pharmacy. German patients also must get their initial prescription approved by health insurers – which is for everyone – but particularly non MS patients – the biggest fight in the room right now on the topic of medical efficacy.
Further, the right to grow one’s own medical cannabis, no matter the condition suffered, has been removed from patients in every legal jurisdiction where there is no constitutional right to it first – namely patients sue for the same.
As such, it is entirely conceivable that as a “strategic” case, this is more likely to put pressure on the NHS to pay the sky-high price of Sativex for MS patients (which it has already refused to do) than create any other kind of access for anyone else.
When contacted by Cannabis Industry Journal, a CDPRG spokesperson said that the patient had given her support for the crowdfunding campaign and needed help.
Most German Patients Are Still Only Getting Dronabinol
However, there are other issues here. Namely that when selecting a strategic case (no matter how harsh this sounds to the individual patient), the entire discussion at this point – certainly from an efficacy point of view, might be better served with supporting the case of a patient who has less access because of either physical condition or economic status.
In fact, in Germany so far, thanks to the change in the law that the British group references, while there certainly are tens of thousands of cannabis patients at the moment (including many MS patients), the majority of them receive Dronabinol or Sativex. And all of them have to fight for medical access and approval from their insurers. That is of course, when they can find a doctor to prescribe in the first place. There are also estimates that there are close to a million patients in Germany who cannot get access, thanks to the change in the law created by one patient’s law suit.
Is this flavour of litigatious advocacy now afoot in the UK, in other words, the kind of lawsuit that is designed to benefit the industry more than patients looking for affordable, home-grown, if regulated product?
Astroturfing Cannabis Issues Under Brexit Colors?
No matter the real versus stated intent of the instigators of the Gibson case, or the eventual outcome of such litigation, there is no doubt that cannabis is being brought into larger political debates. And further, no surprise, “patient access” is an issue just as ripe for “issue manipulation” and astroturfing as anything else.
“Strategic” if not “crowdfunded” cause or tactical lawsuits are another form of this technique.
That foreign cannabis money is already in the room is also no surprise. The British press was alight with stories during June of the amount of money contributed to the CDPR Group from Canadian sources.
Seen within the context of Brexit itself, this is disturbing locally.There are other issues involved in this kind of challenge to the law.
Not to mention the fact that in May, none other than Arron Banks, the self-styled backer of the Leave Campaign, decided, suddenly, to throw his hat into the CBD oil ring on Twitter. Not to mention repeated the same information repeatedly, including his $4 million investment into the space during the following months so far. Plus, of course, wildly optimistic valuations of the U.S. market.
Suing For Patient Justice Or A Backdoor For Canadian and Other Corporate Interests?
There are other issues involved in this kind of challenge to the law.
The first is that in the British case this is actually not a constitutional case per se, but a human rights one. See the problems that those who are trying to define the British constitution right now on other matters (see Brexit) are running into.
The second is that while the patient in question in this case (Ms. Gibson) is undoubtedly relieved at the prospect of a legal defence for growing her own medication in the face of insurmountable cost, on the “positive” side, her case is unlikely to do much more than make impoverished patients fight NHS paperwork if they can find a doctor. See Germany, as a prime example.This lawsuit, in other words, no matter how it might get one woman out of a terrible legal situation, is not necessarily “pro-patient.”
But what it will do is something else. It may well remove the current widespread prohibition on the harvesting of cannabis flower in the UK. And while patients would face again being moved into the slow lane of NHS approvals (with lots of fights over efficacy looming and still unsolved), corporate growers and processors if not importers, already investing millions into such efforts across the UK and Ireland, benefit.
At the exclusion, also, as has been the case in Germany, of local producers who are not already large corporate interests or existing farms.
This lawsuit, in other words, no matter how it might get one woman out of a terrible legal situation, is not necessarily “pro-patient.” It also may well do everything to frustrate, slow down and further complicate medical access for those at the end of the chain, while only opening up “investment opportunities” for large companies and well-heeled interests who have nothing but profit, if not the destruction of the NHS in mind.
For those who have been watching, Luxembourg has played an inordinately influential role on the entire cannabis discussion in Europe for the past year.
This summer, the country announced that it had plans to implement recreational use (for residents only) within two years.
Last summer, the country not only changed its medical use policy as the Deutsche Börse tried to halt the clearances of cannabis trades made in Germany (Luxembourg is the place where the stock trades clear), but set a five-year mandate and timeframe as well.
This new announcement certainly is an attempt to signal at any rate, that the government is not going to run out the clock. But, realistically, with the extra six months already in front of the start date necessary to enshrine the legislation, plus whatever complications arise after that, Luxembourg could initiate its market on January 1, 2022.
Or, as is more likely, it could not. Including rolling delays caused by everything from EU objection and internal logistical hurdles of other kinds to lack of access to product.
Refom Redux?
Will Luxembourg be the “Colorado of Europe?” Probably not.
Will Luxembourg “be the next Canada?” Probably not either. However it is also worth noting that legislators and lawmakers from Luxembourg have drawn recent inspiration via numerous fact finding trips to Canada of late.
It is also worth remembering that even Canada’s great, green, “well-oiled” cannabis machine delayed its recreational market start by months last year. And that was a scenario already a generation in the making.
Further, as some would argue this summer, certainly post CannTrust, the relative “speed” with which Canada embraced its recreational market is again being criticized for not only being precipitous but a direct cause of problems in financial compliance and tracking.
The lack of regulatory muster, in other words, that even allowed a CannTrust to happen, will not fly in Europe. Certainly not in a country where regulations, including that of the European kind, are decided upon (the other center of EU regmaking is of course Brussels).
For that reason, no matter how exciting the news to an industry fighting an uphill battle on medical efficacy, there is plenty of room to temper enthusiasm.
Luxembourg is not going to be “just like” anywhere seen so far. The needle has moved. And the conversation is morphing if not moving on.
One of the most intriguing aspects of all of this, of course, is how insurers will treat the entire discussion.
Holland Round 2?
Here is what Luxembourg also won’t be. A new tourist mecca for out of towners. At least according to the current discussion. How the government will prevent that, is of course unclear. The same grey areas exist in the law behind Barcelona’s social clubs. The Dutch have tried for most of this decade to discourage this – and have largely failed.
What it very well might be, however, is a catalyst for change. A before and after moment if you will.
The Swiss are moving ahead with recreational and medical trials. The British, whatever their relationship with the world after Halloween, are too.
Luxembourg, whatever it ends up being, in other words, is well timed, if nothing else, to be a reference point if not conversation starter about real reform.
Including of course, medical impact, if not, beyond that, efficacy.
Here is where Luxembourg might in fact, be much closer to the Dutch experiment than any other place. Despite the fact the country has had a coffee shop culture for over 30 years, and Dutch medical cannabis is exported to countries all over the world, here is what is missing in Holland: Medical health insurance coverage for patients. In fact, Dutch insurers, en masse, stopped reimbursing the drug as soon as Germany changed its insurance rules in March 2017.
If that is on the agenda for Luxembourg, in other words, no matter how exciting a timeline for recreational is anywhere in Europe, this will be a pyrrhic victory indeed.
In a state where cannabis testing labs are already hard to come by, one lab just got their license suspended, bringing the total number of testing labs in Michigan from six down to five.
According to the Detroit Free Press, last week, Michigan’s Marijuana Regulatory Agency (MRA) filed a formal complaint against Iron Labs, based in Walled Lake, “for, among other things, finding marijuana that tested above the legal limit for various contaminants but not reporting those test results in the state’s tracking system. The lab allegedly also didn’t report edibles that tested above the state’s potency limit for THC, the psychoactive substance in marijuana that produces a high.”
The formal complaint filed by the regulatory body said that Iron Labs lacks “integrity, moral character and responsibility or means to operate or maintain a marijuana facility.” While no reports of health issues associated with products tested by Iron Labs have surfaced, the state is still urging patients to reconsider using products tested by the lab in question.
In a statement last week, MRA Executive Director Andrew Brisbo said he wants his agency to focus on protecting patient and consumer safety. “It is imperative that our licensees follow the rules and laws, especially regarding the testing of medical marijuana product,” says Brisbo. “We are intensely focused on making sure that the marijuana product in the regulated industry meets established safety standards.”
Because the issues are still under investigation, the regulatory body will not comment on how much cannabis is potentially contaminated and how much of the market has been using Iron Labs as an analytical testing partner.
Steven Hoffman, Chairman of the Massachusetts Cannabis Control Commission
Curaleaf, one of the largest cannabis companies in the United States, has dispensaries in a handful of locations across Massachusetts, with plans to open more locations. Curaleaf Massachusetts went from being a non-profit to being a for-profit business, then merged with a Canadian company to access the Toronto Stock Exchange.
The $250,000 fine is the largest penalty assessed by regulators to a state-licensed cannabis business to date. Curaleaf and the Cannabis Control Commission came to an agreement, signed in early August. “In assessing this fine against Respondent, the Commission acknowledges that Respondent’s violation was the result of Respondent’s good-faith but mistaken interpretation of the Commission’s regulations, that Respondent has fully cooperated with the Commission’s investigation, and that the Respondent has accepted responsibility,” reads the agreement.
Steven Hoffman, Chairman for the Cannabis Control Commission told the public that he thinks the company has been “very constructive and collaborative” in working with the Commission. “I think they were wrong, but I can understand they were acting in good faith,” says Hoffman.
As the legalization of cannabis continues to spread across the U.S., both THC and CBD products are rapidly growing in popularity, and we can expect that popularity to increase in the coming years. The cannabis industry alone is expected to account for nearly $16.9 billion in revenue this year.
Subsequently, there is a rising need among infused product manufacturers for sufficient filling machinery for CBD and THC products. These products, including CBD oil cartridges, require filling equipment that can provide quick turnaround, detailed parts and simple changeover and cleanup, among other factors. Let’s go over the different types of filling machinery used for these products.
Vial Filling Machines
For small vial packages made of glass, metal or plastic, vial filling machines are available. Often used for a variety of pharmaceutical products, they’re now suitable for filling liquid THC and CBD oil. Vial fillers are also often suitable for filling liquid products of varying viscosity levels, with either the installation of peristaltic pumps or volumetric filling stations.
Rotary Fillers
Rotary fillers can also fill containers at high speeds and with quick turnaround, and are ideal for filling various types and sizes of containers made of materials such as plastic, metal or glass. A good rotary filler will be able to meet the demands of high-speed environments consistently and with accuracy.
Fixed or Variable Volume Cartridge Filling ToolsAs the industry develops more demand for high-quality filling and other types of equipment, more machines are likely to be manufactured or configured specifically with these types of products in mind.
Fixed and variable volume cartridge filling tools often feature a single-handed operation and are used to rapidly fill cartridges for THC and CBD oils used for vaping. With fixed volume fillers, you’ll be able to designate a specific and consistent volume, while variable volume models allow for different fill volumes for applications requiring versatility.
Automatic Fillers
Automatic filling machines will be able to fill a large number of products at varying speed settings, without the need for manual operation. These machines can fill many different types of products with consistency that helps maintain optimal productivity. As with other fillers, automatic fillers are often customizable in a wide variety of configurations.
Filling Syringes
For concentrates, filling syringes are ideal in many cases. Many patients are in need of a specific dosage of oil, and a syringe can allow for accuracy through the inclusion of measurement indicators. Many dispensaries sell syringe units, so this type of packaging method is likely to continue to rise in popularity.
Other Types of Equipment for Liquid Cannabis Packaging
In addition to reliable filling systems, manufacturers should make sure every other aspect of their packaging lines is covered with high-quality equipment. Facilities will require a variety of conveyors to transport products from one end of the line to the other, cleaners to ensure that bottles or other containers are clean prior to filling, and labelers to apply custom labels to packaging, among other machinery.
With one or more of these types of liquid fillers in a facility, companies can maintain accuracy and efficiency throughout their operations when filling CBD or THC products. As the industry develops more demand for high-quality filling and other types of equipment, more machines are likely to be manufactured or configured specifically with these types of products in mind.
EDGARTOWN, MA, Aug. 6, 2019 – Innovative Publishing Co., publisher of Cannabis Industry Journal, has announced that Andrew Kline, Director of Public Policy at the National Cannabis Industry Association (NCIA), will serve as the keynote speaker at the 2019 Cannabis Quality Conference & Expo on October 2. The Cannabis Quality Conference & Expo (CQC) takes place October 1-3 in Schaumburg, IL (just outside Chicago). The CQC is an educational and networking event for cannabis safety and quality solutions. Serving the Midwest market with a unique focus on science, technology and compliance, the CQC enables attendees to engage in conversations that are critical for advancing careers and organizations alike.
Andrew Kline, Director of Public Policy at NCIA
To see the agenda for the CQC and registration pricing, click here.Kline’s keynote talk is titled “The Business of Cannabis: Why Public Policy Matters.” It will feature two discussions: First, a general update on public policy and government relations with respect to the cannabis industry. Second, Kline will discuss how cannabis should be regulated at the federal level once legalization happens.
Kline joined NCIA’s leadership team in April of this year and began his work with the organization swiftly. He led a coalition of CBD and hemp businesses to prepare public comments and testimony for the purpose of educating and influencing FDA rule-making. Prior to working with NCIA, he served as President of the National Association of Cannabis Businesses (NACB), the first self-regulatory organization for the cannabis industry.
Before joining the NACB, Kline was Special Counsel for the Federal Communications Commission’s (FCC) Enforcement Bureau where he was responsible for high-profile investigations and public policy negotiations affecting the telecommunications, internet, cable and satellite industries. He also served as Chief of Staff and Senior Advisor for Intellectual Property Enforcement in the Obama Administration.
There have been many significant developments this summer in Europe that will shape the debate about reform and the legal cannabis market that trails it, for at least the next year. Here is Cannabis Industry Journal’sroundup of our biggest events and trends over the summer so far.
Medical Sales Across Europe Are Slow
In Germany, it is easy to maintain a fairly ballpark understanding of patient count. Find the number of prescriptions issued in the trade press and divide by four. Everywhere else, however, the true realization of what is going on across Europe is slowly starting to hit everyone outside producers wanting to know what is going on.Establishing territorial footprint has been what the race in Europe has been all about since mid 2016 for the Canadian LPs so far.
This is going to start to hit stock prices soon beyond the wobbles already evident in the market thanks to this summer’s breaking industry scandals (CannTrust, lawsuits in every direction) to lack of financial performance for investors (Bruce Linton’s firing from Canopy). It is becoming increasingly obvious to everyone that just because a public Canadian company issues a press release about a (cultivation, import, export or processing) “event” does not mean anything other than a slew of social media telling everyone about it. The frustration with “forward looking” statements has hit European investors big time, from the retail to the institutional kind.
Despite a lot of press releases in other words, which clearly show market penetration, there is not much else going on from the sales perspective when it comes to growing those first numbers. Establishing territorial footprint has been what the race in Europe has been all about since mid 2016 for the Canadian LPs so far.
However, from an industry, if not investor and of course, patient perspective, patient numbers are what really count. And unlike Canada, where patients remain the biggest existential threat to the industry, the same industry may not sign them up or ship to them directly in Europe. For several reasons.
Germany is still the only country in Europe with a significant patient count, and while growing, slowly, is still a group where 2/3 of patients obtain dronabinol. It should shock nobody that the most accurate patient count right now in the UK is hovering somewhere under 20. For the whole country, 9 months after the law changed. While the peculiarities of Brexit are also in the room, this is so far, compared to U.S. state markets, Canada, Israel and Germany before it, pathetic.
The Industry Says It Supports Patients…But Does It?
There are several levels to this debate which start with the still appallingly high level of price gouging in the room. 2019 and certainly this summer is a time when the Canadian companies are clearly learning that European governments negotiate for drugs in bulk. Even (and especially in the near future) this one. See the difference between the EU and the US.
The level of industry promotion vs patient access recently reached a new nadir this summer when it emerged that despite a great deal of interest, more people showed up (by far) to the week-long cannabis industry conference (European Cannabis Week in London in June) than there are legitimate patients in the UK right now.
That is about to change, but so far, industry support for trials has not materialized. When the various trials now being planned do get going, look for new battles over a couple of issues, starting with patient access to and control of their medical data.
Novel Food: The Regulation That Keeps On Giving
The issues involved in this discussion are complex, certainly by North American standards. This of course starts with the fact that there is no such regulation on the continent. But also rapidly bleeds into puncturing the amount of hot air entrepreneurialism there is in the room.
The structure of cannabidiol (CBD), one of 400 active compounds found in cannabis.
The CBD market in Europe that everyone got so excited about in investor releases, in other words, is basically dead for the time being. Yes, there are a few smart niche players weaving around the regs, but it is a full-time job.
Here is the reality: Since Christmas last year when Austria put the kabosh on all products containing the cannabinoid CBD, several major countries have weighed in on the issue. It is not going away. And it is here to stay, even after recreational.
Political Advocacy Is Stirring In Europe
Whether it is the vagaries of Brexit, the discussion across the continent about how the EU will work together, right wing populist screeds about “too much regulation” or national elections, cannabis is in the room from now until the end of at least 2021 as one of the hottest global political issues under the sun. That includes of course, a discussion about global climate change, sourcing, pricing and resource use so far unaddressed but rapidly looming.
Photo: Ian McWilliams, Flickr
Further, patients are still having a voice – whether it is making sure that their children obtain imported CBD, or that they can obtain their own THC prescriptions without going bankrupt or having to solicit in the black market.
Cultivation Bids Looming?
One of the surest signs yet that the German authorities at any rate, are in no mood to solve the cultivation issues still on the ground and the bid itself, is that the government just renegotiated, for the second time since last fall, the amount of medical cannabis to come over the Dutch-German border. Who is going to go next? With the Italian hybrid now done and dusted, Poland is likely to be next. And when that happens, expect a raft of similar initiatives across Europe. But probably not until then.
And in the meantime? Distributors are looking for product. The demand is clearly there. But across Europe this summer there is a clear sense that the hype machine that has been the industry’s mouthpiece is at minimum overenthusiastic about the bottom-line details behind it all.
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The Colorado Department of Revenue then identified batches of both medical and recreational cannabis produced by Herbal Wellness that were not even tested for microbial contaminants, which is a requirement for licensed producers in the state. Just a few days later, the Denver Department of Public Health & Environment (DDPHE) issued a bulletin announcing their plans to conduct random tests at dozens of dispensaries.
