How founders rate the cannabis key issues paper

There were great fears in the industry as to what exactly cannabis distribution in Germany could look like. The draft submitted for further consultation has now met with much approval - but some crucial questions remain unanswered.

As it currently stands, cannabis and tetrahydrocannabinol (THC) will no longer be classified as narcotics in the future. Production, supply and distribution will be permitted within a licensed and state-controlled framework, writes the ministry. The maximum permitted quantity per person is to be 20 to 30 grams - regardless of the THC value. In the preliminary paper, there was still talk of a THC limit of ten percent for 18 to 21-year-olds. This seems to be off the table for the time being, but according to the cabinet bill, such an upper limit for this age group is to be reconsidered.

Founders hope for good business

"The details of the key points paper show that legalization is gradually taking shape. If this happens, it can push back the black market and finally ensure consumer protection," says Synbiotic founder Lars Müller, assessing the draft. From an industry perspective, the health minister's plans are to be welcomed. "If it is implemented in this way, the German economy will be able to benefit from it," Müller is convinced.

He already sees the opportunities for his start-up. The planned regulations are almost like winning the lottery for Synbiotic, he says. "When the time comes, we will be able to offer franchise-like models for cannabis stores alongside our own stores."

Jakob Sons, co-founder and managing director of Cansativa, is also fundamentally positive about the paper. "We are very happy that the key points paper has now been published as expected," he says in a video commentary. It is an important sign that the policy on cannabis regulation will now change. However, his company is critical of the regulations for supply, production and distribution. According to the start-up, the demand for cannabis could not be met by purely national cultivation. It is important to enable the import of cannabis to Germany. "A certain lead time and major investments will be necessary in order to establish a functioning and secure infrastructure and to be able to guarantee it in the long term."

Advertising ban is controversial

Finn Hänsel, founder and CEO of the Berlin-based cannabis company Sanity Group, also shares the basic joy. Nevertheless, some crucial hurdles would not be removed, such as the reimbursement of costs for medical cannabis. The start-up now fears that patients will try to treat themselves with recreational cannabis without medical advice.

Hänsel is also critical of the fact that there are currently no plans for mail-order sales. Sales are only to take place in licensed specialist stores and possibly pharmacies. However, the online trade in particular could make a major contribution to displacing the illegal market, as this is the only way to serve rural regions, says the founder. He also criticizes the fact that, according to the paper, the German government only wants to allow dosage forms for smoking, inhalation, nasal and oral intake in the form of capsules, sprays and drops. So-called edibles, i.e. foods to which cannabis extracts are added, are missing. "By restricting the dosage forms, you give the illegal market a gateway to offer more edibles in the future," says Hänsel.

Some founders are also struggling with the advertising ban. Product information is essential for education and destigmatization. "A completely new legal market is developing in which consumers have to find their way responsibly," says Hänsel. Cansativa is also bothered by the advertising ban. "A general ban on advertising does not do justice to consumer and health protection," the company says. Cannabis as a product cannot be reduced to its THC and CBD content, but is extremely versatile with all its components and properties.

However, it remains unclear what legal framework legalization will ultimately be cast in. "Under international law, the focus is on three conventions that clearly limit the use of narcotic substances such as cannabis," the key issues paper states. This framework offers "limited options for implementing the coalition project". Niklas Kouparanis, co-founder and CEO of the Frankfurt-based Bloomwell Group, is also critical of the legal aspects. "The biggest question mark in the current key issues paper is and remains the interpretation by the European Commission," he says. "Failure of the current plan at EU level must not be used as an excuse for the German government. It needs a plan B."