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By Niklas Kouparanis, Bloomwell Group CEO and Co-Founder
In April 2023, German Health Minister Karl Lauterbach announced a two-pillar, scaled-down approach to adult-use cannabis legalization. The blueprint included the introduction of nonprofit
associations, or cannabis clubs, that will be able to cultivate and distribute cannabis to adult members. Additional measures include the rollout of regional, scientific pilot projects to collect data to support future public policy.
In May, an early version of Lauterbach’s draft rules for the country’s soon-to-be cannabis clubs was leaked to the German Press Agency. However, these rules are yet to be released officially by the German government.
Under the draft rules, these clubs, also known as Anbauvereinigungen or cultivation associations, will be strictly regulated. To purchase cannabis, an individual must be a club member, and consumption will not be allowed within the facility or 250 feet of it. Memberships are limited to 500 people, and no one can be a member of more than one club.
There will also be product potency and purchase restrictions based on age. Members ages 18 to 21 will only be able to purchase cannabis with a THC content of 10 mg or less and will be limited to purchasing 30 grams per month. Members 21 years and older will be limited to purchasing a maximum of 50 grams per month.
Products sold within the cannabis clubs will be sold in neutral packaging or unpackaged with information about their weight, harvest date, best-before date, variety, and THC and CBD percentage content. This is intended to avoid “consumption incentives.”
German cannabis clubs will report their activity to relevant authorities annually. These reports will include the amount of cannabis produced within the last year, the number of products sold to each member, and how much was destroyed. Clubs must also state where they are purchasing their seeds from, where they are stored, and how many plants they will grow. There will also be limits on pesticide and fertilizer use.
To stay in line with the program’s goal to protect minors, cannabis clubs cannot operate within the proximity of schools or kitas (childcare) facilities. Smoking and/or consuming cannabis products will not be allowed within 250 meters of a school, kita, play area or sports facility. Cannabis clubs, while expected from Lauterbach’s announcement in April, are a far cry from the country-wide legalization of tourist-friendly, adult-use cannabis dispensaries that many had envisioned just months prior. For now, it seems that legalizing cannabis sales within pharmacies and specialty shops is off the table. Cannabis clubs will be trialed within a number of regions over the course of five years, and if successful, officials will consider expanding the program.
Although the cannabis clubs will be limited to servicing only their members, home grows and personal possession of cannabis will still be allowed under the trials. An individual may grow up to three plants at home and may carry 25 grams on their person. Allowing home grows may open up concerns for illicit sellers to infiltrate the budding legal market. Thus triggering further concerns in the market, such as the control of regulated, safe products and preventing minors from accessing cannabis.
With industry discussions about keeping the illicit market at bay still on the table, many have turned their optimism towards the declassification of cannabis. Under this change, cannabis will no longer be considered a narcotic substance under the nation’s drug laws. Such eagerly anticipated actions would result in an expansion of access for patients as well as ease of regulations for prescribing doctors and operators in the space.
In addition, declassification may be able to streamline the process for cannabis imports and bring new products to market. Without narcotic drug laws to follow, it will be easier to register a new product.
With cannabis clubs to be a reality in Germany and the potential for scientific pilot programs, and the declassification of cannabis as a narcotic, the country’s market is poised for immediate and long-term growth.
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