This year’s Cannabis Europe London event was buzzing with positive energy after a year of huge developments across the cannabis industry.
This year’s conference attracted thousands of representatives from the country’s leading cannabis companies, patient representative organisations and politicians, and again focused on the German market, with a deep dive into Europe’s second largest market, the UK.
The event also expanded its roster of speakers as it sought to welcome voices from outside the cannabis bubble, leading to some heated discussions about cannabis liberalization from some unlikely guests.
Despite the variety of topics and speakers, one theme remained consistent: After a period of bleak economic prospects and slow regulatory progress, the cannabis movement is now gaining real, effective momentum.
Opening remarks
Stephen Murphy, CEO of Prohibition Partners, set the tone from the start, reflecting on the start of the conference in 2018, just months before medical cannabis was legalised in the UK and the initial “green rush” accelerated into a full-blown craze.
With 19 legal markets now open and “the United States is on the brink of regulatory restructuring,” Murphy proclaimed that “this is an exciting time to be in the cannabis industry.”
But noting the lessons the industry must learn from the past, he suggested it is now “our collective responsibility to build an industry with a moral core and a positive legacy.”
“Right now, the cannabis industry is opening the door to opinions, attitudes and social debate that go beyond cannabis. I don’t want to put too much pressure on you this morning, but your actions and decisions have a much bigger impact.”
Soon after, Prohibition Partners’ lead analysts Alex Khourdaji and Lawrence Purkiss took to the stage to provide an in-depth look at the firm’s latest “European Report: 9th Edition,” laying the groundwork for the ensuing discussion.
The two discussed the report’s startling findings and delved deeper into the methodology behind the figures after the findings sparked controversy.
This centred around the difference between Germany, which remains 1.7 times the size of the UK market, and Germany, which consumes a significantly higher proportion of the UK market.
What surprised us was that imports from the UK (2,600kg) and Germany (2,700kg) were roughly equal on average per month.
Around 60,000 patients in the UK are thought to have been prescribed medical cannabis, and figures suggest that these patients consume on average twice as much cannabis as their German counterparts.
They suggested that industry growth remains limited by strict regulations, despite growing nearly fourfold by 2023. Furthermore, they suggested that the industry remains hampered by a limited number of doctors willing to prescribe, with only 200 out of 80,000 doctors prescribing, although this is mitigated by the growth of telemedicine clinics.
UK growth
While in the UK on the same day, a panel in the morning discussed the outlook for the UK market and possible changes under the new government due to take office next month.
The first lively session of the day saw panellists and audience members discussing the direction of the UK’s burgeoning healthcare industry.
Grow Pharma CEO Pierre Van Wepelen insisted he expected to see 100,000 patients by the end of the year, despite believing that none of the parties that might come to power have the ambition to change the current framework.
“Even if we changed that, people forget that we’re dealing with a dysfunctional health care system. The private market would still be there.”
However, he suggested that the UK was unique in its sceptical attitude towards private healthcare, and did not believe that price was the main factor preventing patients from moving towards the healthcare market, arguing that it was rather a matter of perception.
“Anything we can do to raise awareness is a good thing,” he said, arguing that the industry should push for more advertising given strict marketing restrictions.
This was disagreed by Robin Emerson, managing director of Jorja Healthcare, who believed a brand that appeared to appeal to adult consumers would bring the healthcare industry into disrepute.
Jonathan Hodgson, head of UK and Nordics at Curaleaf International, seems to agree that awareness is a key driver of growth in the UK.
“The market is growing rapidly but we haven’t reached a tipping point yet. Instead of fighting over 50,000 or 60,000 patients, we need to work harder as an industry to find and bring in patients, which is difficult given the regulations,” he said.
In response to suggestions from panelists and audience that the industry should unite rather than compete, further feedback from the audience was that few companies are investing in awareness campaigns.
The lively discussion culminated towards the end of the conference, when cannabis advocate and industry veteran Peter Reynolds faced off against noted cannabis skeptic Peter Hitchens, debating the merits (or dangers) of cannabis decriminalization.
Reynolds begins by pointing out that Britain has suffered from poor drug policy since 1928, and that Prohibition was not only the worst social policy of the post-war period, but was also more responsible for social decline than the drugs themselves.
He argued that prohibition puts money into the hands of criminals and poses more danger to children than marijuana itself, but made it clear that he does not believe “marijuana is harmless”.
“We have all the laws we need to protect people without banning personal possession…There’s no question that the effect of the laws is exactly the opposite. Laws against marijuana are a major source of harm to children because marijuana is prohibited.”
Hitchens fired back, focusing mainly on the apparent correlation between cannabis use and mental illness, adding that he was always impressed by how passionately Reynolds advocated for “the most ridiculous causes”.
The reason the ban didn’t work, he continued, was because it wasn’t effectively enforced, to which Reynolds suggested it was because police realised it was a “waste of time”.
“The ban means police don’t have the time to deal with more serious crimes,” Reynolds added.
Not surprisingly, the two men shared no common ground about the potential health effects of heavy cannabis use, with Reynolds arguing that any correlation was “tenuous at best” and suggesting that you’re statistically much more likely to be struck by lightning than to develop a mental illness as a result of cannabis.
Meanwhile, Hitchens compared it to Thalidamide (a popular allegation by cannabis opponents) and suggested that without rigorous testing, cannabis would remain dangerous.
“It’s the same situation as 50 years ago when the research showed that smoking was bad for your health. That was very bad for the tobacco companies. It’s the same situation now for people attending cannabis conferences.”
There was little common ground between Hitchens and others in the room, although one enthusiastic audience member questioned why Hitchens would deny a patient a potentially life-saving treatment.
Hitchens said he was “all for medical research” and would support its use as a medicine if it was proven to have medical value, adding that he “doesn’t dismiss the possibility that it may have medical value”.
“The starting pistol for Europe”
Following a string of exciting cannabis events across Europe, a sense of excitement was evident at numerous panels throughout the day, particularly regarding the German market.
Following the removal of cannabis from the narcotic drug list on April 1, 2024, the Commission immediately turned its attention to the significant growth experienced by medical-related businesses in the market.
420 Pharma CEO Thomas Shatton said sales have “literally doubled” since the change, adding that some pharmacies have been forced to close their hotlines because they were overwhelmed.
He revealed that because prescription procedures have been streamlined, the large number of staff previously employed to manage inventory is no longer needed.
“This is great for the cannabis industry. It’s a real change in society. We need to build on this momentum and get on a strong footing. This is not just a change in the law, it’s a change in people’s hearts.”
Demecan CEO Dr Konstantin von der Groben expressed a similar view, suggesting that Germany has now reached a “tipping point”.
“I’ve worked in this industry for a long time and I’ve never seen anything like this. It’s great to be in the industry now, but it hasn’t always been this way.”
Regarding Demecan, one of only three German companies currently licensed to grow cannabis, he added that with cultivation restrictions now lifted, the company has already applied to the BfArM to increase the number of cannabis varieties and add variety to its product offering.
“I would encourage everyone to consider growing it in Germany. I believe we can compete with imports.”
Industry expert and cannabis lawyer Kai-Friedrich Niermann said changes could come soon in the European Parliament as well, with the creation of a working group focused on cannabis policy.
“A new legal basis for cannabis policy in the European Union would make it much easier for all countries to legalize cannabis lawfully and safely, without the risk of infringement proceedings by other countries. This is extremely important and could be a watershed moment for the EU.”
However, Dirk Heiteprime, president of the German Cannabis Industry Association, suggested it could be a long time before the bill becomes law.
“If you think the German process was long, the EU one is even longer. But I agree with Kai that change is happening.”
Regarding the prospects for Germany’s pillar two cannabis bill, the commission was more sceptical, suggesting that the bill is unlikely to be passed before the next election.
