This year’s Oktoberfest celebrations could have a much chiller vibe, and it’s all thanks to some weed-loving lawmakers in Germany.
Driving the news: Germany is the latest country to legalize cannabis for recreational use, a move that lays the groundwork for commercial legalization by 2030 and opens the door for Canadian producers looking to cash in on weed sales within the EU’s biggest economy.
- According to The Globe and Mail, importing recreational cannabis that is grown in Canada is expected to be barred even when full legal commercialization is passed.
Why it matters: Germany currently imports most of its medical cannabis from Canadian producers. With the new cannabis-friendly rules in play, the number of patients in the country with a prescription for cannabis is expected to grow from 300,000 to around 4 million.
- Canadian companies Aurora and Tilray already have greenhouses in Germany, while High Tide has partnered with a Berlin producer to look for acquisition opportunities in the country.
- Down the line, some Canadian companies could see their international sales close to double if Germany reaches full legalization by 2028, according to one estimate.
Bottom line: Canadian pot producers are hoping that Germany can offer the industry a lifeline. Major players, including Canopy, Aurora, and Tilray, are still struggling to achieve profitability amid supply-and-demand imbalances and a persistent black market.—LA
