Since the emergence of CBD in Switzerland in 2016, hundreds of small and large entrepreneurs have been trading the new “green gold.” But three years later, the price of legal cannabis is falling sharply.
This is the end of a period of euphoria, or in – any case – this marks the end of an unbridled period of growth, one that will likely have to evolve and become more structured.
A kilogram of CBD could fetch up to 6000 Swiss francs (approximately $6,135 dollars) in 2017. Today, it trades anywhere between 1000 and 1500 francs (between $1,020 and $1,530), because too many entrepreneurs have rushed into the promising sector, sometimes in a somewhat improvised way. Not all of these new industry players are likely to survive.
Across the Atlantic and in the US, some CBD industry players have taken a highly-creative and radical new approach and carved a strong niche for themselves in the nascent CBD industry. Take Denver, Colorado-based West Coast Ventures Group (OTC: WCVC), for example. WCVC has taken traditional products and services and “infused them” with CBD. The company gained fame for becoming “America’s first CBD restaurant stock.” Its “Illegal Burger” cannabis edibles franchises are tackling the red hot CBD edibles market, which is projected to be worth $4.1 billion by 2022. Of the 650 Chefs surveyed at the American Culinary Federation, 75% said cannabis-infused foods will be the hottest trend starting in 2019. WCVC’s Illegal Burger Writer Square restaurant, located in Downtown Denver, is also on track to exceed $1 million in sales this year.
A lot more potential for large-scale use
“The market for legal cannabis for smoking us is clearly saturated,” explains Michael Mosimann, member of the committee of the Swiss Hemp community, in “La Matinale.” However, he adds, “for products such as CBD-based oils, cosmetics or pet food, there is still a lot of potentials.”
There is still room for new players who can make a difference, says Michael Mosimann, because it is a market that is maturing and tends to become more and more professional. “We must specialize and provide products of very high quality, without pesticides, without synthetic fertilizers,” says this specialist.
The focus lies on foreign markets
New markets are also opening up in Europe, Africa, and the United States. “And Switzerland, with its capacity for innovation, also has many cards to play in the CBD trade abroad.”
But to continue to grow, especially in the export market, the industry believes that Switzerland should open up more opportunities by further liberalizing this newly regulated market for legal cannabis, which is beginning to spread more and more across Switzerland’s domestic borders.
In Switzerland, the possession of a minimal quantity of cannabis by a minor (less than 10 grams) is not punishable by law. The Federal Court notes that, on this point, the law does not treat minors and adults differently.
The revision of the Narcotics Law should allow for tests of regulated cannabis distribution. But the National Health Commission has decided to force participants in the pilot project to register with their school or employer.
The clause adopted at the beginning of July by the Commission, and announced last Wednesday in the German-language “Tamedia” newspapers, will undoubtedly have the effect of significantly reducing the number of candidates for these pilot tests, scheduled in Lausanne, Geneva, Zurich, Bern, Basel, Biel, and Lucerne.
These tests would allow consumers to purchase legally, which makes its critics say that this is the first step towards full legalization.