The legalization of cannabis in Germany is finally on the right track. The Federal Government’s key issues paper is available and Federal Health Minister Karl Lauterbach said: “The drug policy must be renewed.” But a lot still has to happen before legal cannabis can be bought on every corner in Germany. The paper must now become a draft law, which then has to be passed by various committees and the EU Commission also has a say. So there will be no simple solution and an uncompromising release of the drug, as the author of this interview last called for.
However, the prospects are so promising that quite a few companies that have so far mainly been active in the medical cannabis business are of course preparing for the go-ahead from the government and want to be part of the boom from day one. Bloomwell Group is one such company – and Niklas Kouparanis is the boss. Kouparanis spoke to the star about possible scenarios of what the cannabis market in this country could look like.
Mr Kouparanis, please introduce yourself briefly. What have you been up to and how did you get into cannabis?
Niklas Kouparanis: I’ve been in the industry since early 2017, so I would consider myself a cannabis veteran. In June 2020 we founded the Bloomwell Group, before that I had already built other companies in the sector. I became aware of the potential of cannabis in the USA even before the “Cannabis as Medicine” law came into force in Germany in March 2017. In 2020 we were faced with the situation in Germany that a number of importers and wholesalers were selling medicinal cannabis to pharmacies, but patients had enormous difficulties finding doctors who wanted and were able to accompany them in therapy with medicinal cannabis. We are in the starting blocks to supply the luxury goods market in Germany and to actively promote the development of new products.
What is the situation in the medical field?
Cannabis, including medicinal, continues to be stigmatized. There are many pharmacies and doctors who do not want to deal with it, but more and more patients who cannabis can really help. Through our subsidiary Algea Care, we offer telemedicine therapies and arrange treatments. We currently have 11,000 patients there and work with around 90 doctors throughout Germany who are trained by us and also look after long-term therapies with us. For example, we have a great deal of knowledge about the composition of substances, information about certain flowers and suitable forms of therapy for patients. On the other hand, this work allows us to further develop products, which will ultimately also help in the leisure market.
Speaking of which – how many years too late does legalization actually come, if it does come?
We’ve had the prohibition policy for over 60 years now. It should be clear to everyone that this failed. By the mid-1990s at the latest, it should have been so obvious that we should actually have had the debate we are having today. Anyway, I’m glad we’re talking about it now and we have to try really hard this time. Unfortunately, the implementation is more complex than you think, because international law is involved, which the federal government cannot decide for itself.
So the desire to just legalize cannabis overnight isn’t realistic at all?
Unfortunately not, because the European Union plays a major role in this. The two countries that actually legalized cannabis at the state level, namely Uruguay and Canada, didn’t have the problem. In the EU, the conditions for legalization must be created, otherwise Germany could face infringement proceedings and severe penalties would be threatened. On the one hand, this is because the EU relies on the United Nations Single Convention on Narcotics, which prohibits the legalization of the entire value chain for recreational cannabis. In addition, Germany has signed two European treaties in which it undertakes, among other things, to punish the production, processing, distribution and sale of cannabis for recreational purposes. That is why Germany cannot act on its own authority.
Moment. But how come I can easily get cannabis in the Netherlands? They are in the EU too.
I hear this example very often and unfortunately it is very bad. Cannabis is not legal in the Netherlands but is decriminalized. However, this leads to many problems that are not needed in a serious market. In the Netherlands, cannabis is only decriminalized in shops. This means that even the delivery – ie the messenger with the substance in his backpack – is actually illegal every day, but at least in a gray area. This affects the entire industry. Cultivation? Logistics? All completely illegal. And that opens the door to the black market, because someone has to fill this gap. This is a catastrophe for the consumer, because product safety is guaranteed not to be the top priority in such an environment. So the Netherlands is a great example of how not to do it – and that we need to legalize cannabis all or not at all.
Let’s turn the question around: Why should Germany do this urgently?
The most important reason: Prohibition failed. The federal government rightly points out that the treaties miss their own goals. More people are consuming cannabis, young people can easily purchase cannabis on the illegal market and contaminated products are increasingly endangering people’s health there. So these contracts endanger the well-being of many people instead of doing justice to their actual purpose of serving the good of mankind. We therefore need a radical reorientation of global cannabis regulation. A rethinking at EU level in the case of Germany would set the ball rolling with far-reaching consequences worldwide.
Also, I’m pretty sure that Germany will become the largest cannabis market in the world. Experts conservatively estimate a requirement of 400 tons of flowers in the first year. We need capable hands to do this. It’s a job market of its own, a huge opportunity. You need cultivation, processing, sales, logistics – everything. And on a grand scale. But as I said, I have to slow down: If the EU does not give the green light, none of this will happen. Unless Karl Lauterbach still has a plan B up his sleeve that he doesn’t want to reveal for strategic reasons. In addition, it is likely to be difficult to meet demand since the key issues paper does not provide for any imports.
How so?
Because companies in Germany are currently only allowed to cultivate 2.6 tons a year for medical purposes – and are currently not even using it. Without the ability to legally import bud, it will take us years to meet demand and meet demand. And if you leave something out in this economic chain, you strengthen the illegal market, which cannot be the goal and must not happen. It takes a serious process from cultivation to consumption.
How do you actually imagine the stoner landscape in Germany? Amsterdam or USA?
Rather USA, if I look at the current debate. I don’t think we’ll see cozy coffee shops here to buy and smoke right away. At least in the first phase, the requirements will be so strict that marketing and outdoor advertising will only be possible to a very limited extent. I’m not even sure you’ll see the drop-off points if you don’t know they’re there. So I think you will go to a shop, get advice there, have to register and then you can buy something – and then leave again. It is important to guarantee companies at least a minimum amount of information so that consumers are made aware of the legal options – and do not continue to shop illegally.
That almost sounds like the scenario in the key issues paper, which envisages sales through pharmacies, would be realistic.
I don’t think pharmacies have the time or inclination to do that. There are a handful of highly qualified pharmacists, but there is a lack of expertise across the board and, to be honest, the clientele simply will not fit together. You then have people with a cold who have to wait behind ten healthy people for their medicine, and the pharmacists are busy talking about types and effects of weed for enjoyment – I don’t see that. But I also say: if you want to make a contribution, why not? Let’s use the entire infrastructure. However, pharmacies will certainly not be the solution for comprehensively supplying the periphery.
What would be an alternative?
Very clear – and actually totally obvious: controlled online sales. There are many reasons for this and I am shocked that this is not sufficiently mentioned in the key issues paper. An online shop allows customers to be supplied nationwide, clear product information and the option of checking delivery at the front door. Age checks, education – all of this can be done via mail order. And in my opinion, that should also be the only way to supply rural regions. The country pharmacy will not do it and a dispensing point in every village will not pay off.
Well, the key issues paper also allows for self-cultivation, doesn’t it?
That’s right, if you grow three plants, you’re covered, I would say. But I see that more among enthusiasts who want to deal with the rather complicated matter. You need a lot of equipment for this and due to the high energy prices it is anything but cheap. Unless, of course, you simply put the plants in the garden, but the quality then suffers from the German climate. However, cultivation is a good keyword that shows me that the key issues paper has major weaknesses. Did you know that one plant produces around 150 grams of buds?
Isn’t that a problem if the limit is supposed to be 30 grams?
Exactly that – I hope the 30 grams only mean the maximum amount sold in the shop, but not the amount that you are allowed to own. Even if such a sell limit makes no sense, it becomes absurd at the latest when you own it. How are you going to control that? When is too much too much? What are the penalties if it is actually legalized? As I said: either completely or not at all. You only create new problems if you come with limitations.
How much is 30 grams actually? Is that enough?
As a delivery quantity in shops, I think that’s actually quite okay. If we assume a price per gram of around 10 euros, that would be 300 euros anyway. You have to want to spend that much in one day. And even if: I don’t know anyone who consumes it in 24 hours. Experienced users should get by with three grams.
And edible stuff with THC content? How does that add up to the crowd?
That will probably also happen, at least I take it from the key issues paper that it is intended to be allowed. How do you calculate that on the 30 grams of flowers? Exciting question. The limits are simply unnecessary and not very helpful.
What are you actually missing in the paper? road traffic?
Very important point, it’s all much too vague for me. There is an urgent need for testing methods that are able to measure the current effect on a person. And they already exist. Our guidelines that we have today are absolutely no longer sufficient for fair treatment of consumers. Currently it can happen to you even after weeks that you still have traces in your blood and you have to go to the MPU. The limit values and controls are not up to date.
Something else?
Clearly an amnesty for previously illegal traders and people who have been fined for cultivation. So far, it’s all very much focused on the consumer, ignoring people who are on the other side. I also think it is very important to re-evaluate medicinal cannabis so that it can be bought with a regular prescription in the future – this saves a lot of money and is very helpful for patients.
