At the Biedex Markets Cannabis Capital Conference in Hollywood, Florida, Constantin von der Groeben, managing director of Demecan, declared a pivotal moment for global cannabis legislation.
‘We’ve reached a tipping point. I think there’s no stepping back from Germany’s cannabis legalization,’ von der Groeben said during Tuesday’s panel.
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The discussion, moderated by Tim Seymour of Seymour Asset Management, featured insights from key industry leaders including Matt Darin, CEO of Curaleaf CURLF, Laurie Holcomb, CEO of Gold Flora GRAM, and Darren Weiss, president of Verano Holdings VRNOF.
Each shared their perspectives on the evolving global cannabis market, offering insights into how their companies are navigating this dynamic landscape.
Von der Groeben elaborated on the economic implications for Germany, now poised as a market of 84 million people, one of the largest economies worldwide and “probably a role model for other European countries” in the cannabis realm.
He also highlighted the complexities of navigating this highly regulated market. “The German market is pharma-heavy, demanding high-quality production standards and strict regulatory compliance. This opens up opportunities for technology and innovation in cultivation and distribution.”
Cannabis Markets: Europe Vs. The U.S.
Darin provided insights into Verano’s strategic entry into Europe: “We made a move into Europe three years ago…the international opportunity has a lot of benefits that we’ve not seen in the US.”
He elaborated on the operational advantages in Europe compared to the U.S., particularly noting the absence of certain punitive tax measures.
“One of the big ones is they do not have something up to 280E in Europe. So this punitive tax that we’ve all been paying in the U.S. is not a thing in Europe,” Darin added.
The California Perspective And Global Strategy
Holcomb talked about California, known for its sophisticated yet competitive cannabis market.
“We are literally in a knife fight,” Holcomb said about the intense competition and innovation within the state, as California has the fifth largest GDP in terms comparable to major economies like the UK and India.
Holcomb discussed the comprehensive approach her company has taken, from cultivation to retail, highlighting the strong brand presence and consumer sophistication that could be leveraged internationally.
“We’ve been able to accomplish 66% adjusted gross margins in our market. We felt we can take that same business model, move it to other states, perhaps other countries, and take the brands with us and be successful,” she explained.
Global Supply Chain And Market Opportunities
Weiss echoed the sentiments about the interconnectedness of the global cannabis market.
“We are part of a global supply chain. We buy products from China, we get supplies from the Netherlands,” Weiss noted.
He also discussed the broader implications for the cannabis space. “We’re an industry that employs half a million people in the United States, about the same as the airline industry…$100 billion worldwide over the next six years.”
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