Who will revenue from authorized hashish in Germany? – DW – 03/09/2024 | EUROtoday

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Dirk Rehahn is not popping the champagne corks simply but. “I still don’t quite dare celebrate,” the entrepreneur says. He already has good purpose to, although: Traffic to his two web sites has elevated massively since February 23.

That was the day the German parliament handed the federal government’s draft legislation “on the controlled distribution of cannabis to adults for consumption purposes.” It stipulates that each one adults can be allowed to develop three hashish crops at residence and maintain as much as 50 grams (1.75 ounces) of hashish there, and can also carry as much as 25 grams on their individual.

The legislation was scheduled to return into drive in April, however, based on media studies, it might now be delayed, which is why Rehahn is being cautious. Nonetheless, it already appears clear that, if the legislation is applied based on plan, he can be one of many winners.

Karl Lauterback smiling and giving a thumbs-up next to a big pink sign that says, in German, "Cannabis: Legal but risky"with a warning about the potential health risks, for children in partcular
The German well being minister, Karl Lauterbach, nonetheless has to get his legislation handed by the second legislative chamber, the BundesratImage: Kay Nietfeld/dpa/image alliance

Rehahn sells all types of products associated to hashish cultivation. They may very well be described as greenhouse know-how and gardening provides. His greatest vendor is a DIY “grow set”: a tent the scale of a fridge, with lamps, air flow methods and measuring know-how.

The least expensive prices greater than 500 euros, the most costly virtually 1,500 euros. Right now, although, they’re all offered out. “People are overcoming their reservations about growing their own cannabis,” Rehahn advised DW.

Cannabis cultivation market is booming

Rehahn has, previously, spent two years in jail for aiding the cultivation of hashish. It was after this, in 2011, that he began his wholesale enterprise. Since then, when advising prospects, he speaks of rising chilies, tomatoes, and broccoli.

He’s trying ahead to being “allowed to give advice perfectly normally.” Rehahn has 4 everlasting workers at his two shops, Drehandel and Dirks Growshop, which collectively had a turnover of two million euros final yr. He anticipates that this yr it would improve to a few or 4 million.

Dirk Rehahn, a bald man with glasses in a grey T-shirt, smiles broadly in front of a room full of plants
Dirk Rehahn’s on-line companies are prone to profit from legalizationImage: Dirk Rehan

Morale can be superb amongst different suppliers within the so-called rising trade. Seeds 24, an Austrian firm that sells hemp seeds, the Hamburg-based provider Growmark, and others are warning that there are lengthy waits for supply. The on-line store Grow Guru feedback: “All our shops and suppliers are currently overwhelmed with customers.”

No large enterprise with leisure hashish

But not everybody within the trade has purpose to have fun. Those who had been betting on complete legalization have come away empty-handed. There can be no specialist retailers promoting hashish. Importers, distributors, and store house owners will all have to hunt new enterprise fashions.

The legislation says that leisure hashish will both be cultivated by customers at residence or consumed in so-called “non-commercial cultivation associations,” also referred to as “cannabis social clubs.”

“Our business model was never predicated on legislation, fortunately,” says Philip Schetter, the CEO of Cantourage, an organization that makes a speciality of importing and processing hashish for medicinal use, and in addition runs a specialist hashish clinic in London. Based in Berlin, the corporate says it has 50 workers in Germany and 25 in Britain.

Headshot of a smiling Philip Schetter
Philip Schetter, the CEO of Cantourage, sees nice potential within the medical hashish marketImage: Cantourage

Cantourage was floated on the inventory market on the finish of 2022. Since then, its share value has greater than halved. As for a lot of others within the trade, Cantourage’s drawback is that there hasn’t been a very large breakthrough.

“Unlike other companies in our field, though, we’re showing strong growth, and at least we’re not losing money,” says Schetter. He states that within the first 9 months of 2023 the corporate had a turnover of 17 million euros.

Schetter advised DW that as a result of Cantourage would not have costly manufacturing services of its personal, the working prices are manageable. “We’re prepared for whatever comes,” he added confidently. The biggest potential, in his view, is in hashish reclassification.

Medical hashish: From poor relation to revenue driver

The change within the legislation will even imply that hashish for medicinal use is not categorized as a narcotic. This will make it a lot simpler to prescribe. “Companies already in the medical cannabis business will benefit disproportionately,” says Finn Hänsel, founder and CEO of the Sanity Group.

His firm has already turned its again on some areas of exercise and laid off workers as a result of the method of laws is taking so lengthy. However, Hänsel stays dedicated to the medical market. “We had hoped for more overall, but there’s still a lot of potential in the pharmaceutical market,” Hänsel advised DW.

Cannabis legalization, a brand new excessive for Germany

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There are at present slightly below 200,000 hashish sufferers in Germany, and this market might develop additional. The trade has a complete turnover of 200 million euros throughout quite a lot of firms.

Taking a long-term strategy

But there’s nonetheless a small window of alternative for the businesses to do enterprise with leisure hashish. In the medium time period, the state is planning to permit “commercial supply chains” in chosen cities and districts.

If these pilot tasks go forward, in Berlin, Cologne and different locations, they may herald extra thousands and thousands by way of the money registers of specialist retailers. Details of those pilot tasks can be revealed in the summertime. People who need to keep available in the market must have persistence and a long-term strategy.

Not, nevertheless, within the case of on-line retailer Dirk Rehahn. As was the case through the gold rush, it is the one who sells the sieves and spades who has the most effective likelihood of constructing good cash.

Rehahn would not need to tie himself down too firmly, although. The hashish trade may be very dynamic, he says. Other enterprise fashions could also be extra profitable within the medium time period. “Almost all the small, pioneering health food shops in the town centers have been displaced by big chains. The same thing could happen to us.”

This article was initially written in German.

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