While the French government is trying to outlaw CBD flowers, its northern neighbour is a European leader in the market as Françoise Martin, of Buddy Belgium explains.
CBD first started to gain popularity in Belgium in 2018 with the opening of the first specialised stores in the country.
In just a few months more followed in all major cities supplying all sorts of products including oils, vapes and cosmetics.
At this point, flowers were being sold as a non-consumable item – potpourri – while being mainly smoked by consumers.
In response to this legal grey area, the Belgian government decided to act and add a legal framework around their sale.
Tobacco Products
On April 11, 2019, a decree signed by the Belgian Federal Public Service Finance stated that ‘products destined to be smoked and in which the THC content is less than 0.2% are considered as tobacco products and will therefore be taxed as such’.
The implementation of this excise system resulted in lots of actors disappearing – with the number of CBD shops falling from 200 to around 30 – due to a drastic decrease in margins.
Others managed to adapt by changing their core business and extending their product range and the popularity of this new product line sparked interest from an industry – that had been in decline for some time – namely tobacco.
CBD flowers now play an increasing role for tobacco retailers and tobacco companies, who are now entering the market looking to exploit their industry knowledge and conquer this new segment.
Covid-19 Consumption Boost
This emerging market was also given a boost during the Covid health crisis, with specialised shops not considered essential services they, therefore, had to close.
But consumers realised they could find the same brands in other types of stores rather than going to specialised ones.
The main distribution channels in Belgium are the grocery stores stocking tobacco products and tobacco and CBD can also be found in bookstores, newsstands, night shops and gas station chains.
Obtaining CBD flowers from these outlets during the pandemic allowed the CBD industry to mature and gain wider recognition.
Regulations And Taxes
With flowers being considered a natural component and taxed like tobacco, there are similar rules around their sale, such as the packaging must include a fiscal stamp, be in accordance with the local legislation and also show a health warning in three languages.
It is also forbidden to mention that CBD could have beneficial properties for one’s health, neither that it’s organic, made in a specific country and no superlatives can be used to describe the product positively as not to influence consumers – for example, “premium indoor quality”.
Whereas all foods and dietary supplements containing extracts enriched with cannabidiol are considered as Novel Foods.
The European Union first started distinguishing CBD from THC with a new directive in 2016, which authorized the commercialisation of dried CBD flowers all around Europe – under the strict condition that the THC content in the flowers doesn’t exceed 0.2%. (Regulation (EU) 1307/2013).
Rapid Expansion
Our supply chain starts with the flowers cultivated and dried in countries such as Italy, Greece, the USA or Macedonia, before being sent to Switzerland for the extraction of cannabinoids and to reduce the THC levels to become compliant for the European market.
On arrival in Belgium they are then tested to ensure the conformity before being manufactured into individual packets/containers or sold in bulk across Europe.
In 2020 we expanded into France and are now integrated into a wide network of tobacconists selling CBD flowers as potpourri, in accordance with existing French cannabis regulations – although hopefully that will soon change with the Government’s attempt to ban them currently under review .
Switzerland was the first country to fully develop a CBD industry but in the European Union, Belgium is now the pioneer in terms of cannabis ‘light’ legislation.
Many European nations are still facing a legal grey area, but by authorising distribution and sale of CBD products the Belgium government has helped the market expand rapidly with increasing numbers of actors joining this specific sector of the tobacco industry.
