Germany is seen as a huge potential catalyst for jumpstarting the recreational and medical cannabis industry in Europe.
The country of 83 million is Western Europe's most populated and features the largest economy on the continent, so a breakthrough there could result in a domino effect that sees other countries also legalize the drug.
Germany seems to be the sweetest plum for international cannabis businesses looking to expand their footprint, but at least one Canadian company may have jumped the gun.
Tilray (TLRY) overstated the nature of its meeting with German drug officials in a press release last week, those officials told MJBizDaily.
Tilray said it held a "roundtable" with German regulators to "kick-off draft legislation" to legalize recreational use in the country.
Tilray namedropped Burkhard Blienert, Federal Government Commissioner for Addiction and Drug Issues, saying he and the group presented a plan for adult use cannabis legislation at the roundtable and repeated the German government's commitment to getting a first draft of a bill done in the "coming months."
But either the meeting didn't go the way Tilray presented it, or Germany is keeping its plans close to its vest, because the country is pushing back on Tilray.
“We (would) like to inform you that there is no roundtable with Tilray and the federal government commissioner for addiction and drug issues,” Blienert's spokesperson told MJBizDaily.
"The content of the press release is just not correct. We are not downplaying the meeting, because there is no cooperation and there will be none either with Tilray. On no level to be clear.”
Tilray didn't immediately return a request for comment.
Germany's Review Process
On June 14, the country announced that it will start a review process called "Cannabis - but safe" which Blienert says is the launch of "modern cannabis policy" in the country.
"The time has come: We are starting the preparatory phase of legislation," Blienert said at the time. "The hearings are intended to discuss which measures can be used to ensure the best protection for young people, health and consumers in the event of implementation."
Personal possession is already decriminalized in Germany and the country has a medical cannabis program in operation.
But Germany could become the second European country to fully legalize the drug after the tiny island-state of Malta.
The reason legalizing cannabis in Germany, or any European country, is so difficult is the Single Convention on Narcotic Drugs, 1961. The U.N.-convened Single Convention "outlawed everywhere" the non-medical use of cannabis, which it grouped in with other narcotics like opium and cocaine. Germany and 185 other countries are signed on to the treaty, which is pretty iron clad.
So when Tilray said that its meeting with Blienert and three other health officials was to "kick-off draft legislation," Germany almost has to push back against that characterization with Blienert’s spokesperson saying the meeting “was not part of the ‘preparatory phase’” of legalization.
"In concrete terms, the main question will be whether the EU will give Germany and its allies the green light if they succeed in finding a solution within the framework of the United Nations Single Agreement," said Niklas Kouparanis, CEO and co-founder of Bloomwell Group, a German cannabis company.
Germany's Market Is Increasing Imports
Germany's recreational cannabis market may be months or even years from coming online, but the country is still on the way to importing a record amount of weed.
Germany imported nearly 10,487 kilos (11.6 tons) of dried flower and extracts through the first six months of 2022, 6.1% higher than the first half of the year. The country of 83 million imported 9,840 kilos last year.
In 2021, Germany imported 20,589 kilos of cannabis for medical and scientific purposes, much higher than the 13,346 kilograms in 2020, the German Federal Institute of Drugs and Medical Devices said.
Germany gets the majority of its weed imported from Canada, with licensed producers shipping 6,493 kilos of medical cannabis flower and extracts to Germany. About a third of Germany's imports come from Canada.
Tilray is reportedly the top marijuana company in Germany. But the country's share of imports has fallen since it was above 38% in 2017. Denmark accounts for 18.1% of imports, Netherlands 18%, and Portugal 11.7%.
