[Le trois-feuilles] Unions and hemp: CBD to divide them all

The product hasn’t even been regulated yet, and various stakeholders are already maneuvering to take control of it. At a time when, according to information from Newsweed, A bill to legalize CBD is in the works at the ministry, the industry is unable to speak with one voice. In France, three major organizations represent the French hemp sector, from farmers to manufacturers: Interchanvre, the long-standing player in the hemp sector; the Professional Hemp Union (SPC), which focuses specifically on medical cannabis and CBD; and the Union of Industrialists for the Valorization of Hemp Extracts (UIVEC), a recently established organization. And these three aren’t going on vacation together this summer.

The cultivation of industrial hemp or CBD hemp, whether or not the flowers are harvested, THC levels of 0.2% or 0.3% in the finished product, «wellness hemp» or cannabidiol extract—the major players cannot agree on several issues. «You can tell there are differences between them", notes one of the 33 members of the National Assembly’s Fact-Finding Mission on Cannabis. Interchanvre is fairly traditional; its members are quite skeptical about CBD. The SPC, on the other hand, is very proactive regarding CBD and doesn’t want it to suffer from a reputation as a narcotic. And there are also activists who believe that CBD’s salvation will come from a complete normalization of cannabis.»

The report by members of Congress even recommends a «rappro»cooperation between the two organizations", Interchanvre, and the SPC, specifically in «benefits in terms of economic synergy and the promotion of the sector’s interests at the national and European levels». But bringing them together is easier said than done.

Especially since, since the report was published, a third player has entered the market. UIVEC was founded on February 5. At the helm: Ludovic Rachou, former treasurer of the SPC, assisted by Franck Barbier, president and member of Interchanvre. To understand all these differences among the players in the CBD industry, we need to take a brief look back.

«They don’t have the information they need to understand.»

It is June 2018. At that time, the French national soccer team is in Russia to kick off its World Cup campaign against Australia. Back in France, Aurélien Delecroix, an entrepreneur from Corrèze and CEO of GreenLeaf, launches the Professional Hemp Association (SPC). Soon, the SPC crossed paths with Interchanvre. This interprofessional organization, founded in 2003, is the successor to the National Federation of Hemp Producers (FNPC), which dates back to 1932.

But relations between SPC and Interchanvre are strained. «Back then, in 2018, we asked the SPC to join the interprofessional organization.”. They were invited twice to attend a board meeting. But they chose instead to form a union, “It’s a shame,” says Nathalie Fichaux, director of Interchanvre. »I thought it was better to work together than separately. When it comes to cross-professional collaboration, we’ve always been open-minded." A version disputed by the SPC, which believes it took the first step.

The main sticking point? CBD. The SPC wants France to raise the THC limit from 0.2% to 0.3% in hemp varieties grown in France. This is primarily to gain access to varieties that produce higher levels of CBD. A demand that has been met with a cool reception by the industry association. «We tend to be cautious about CBD. In 2019, the United States cultivated 54,000 hectares of hemp, then 18,000 hectares in 2020. In Switzerland, when CBD was legalized, there were 500 stores. Today there are 200. We’re more interested in stabilizing the market than in putting businesses out of business,», continues Ms. Fichaux.

They want the «status quo»

«Interchanvre’s legacy has been to keep the hemp industry alive in France, but the landscape is changing.”. They are legal when derived from hemp fiber and seeds [used in industry], but »do not have the legitimacy to maintain a dynamic and internationally competitive CBD industry", says Aurélien Delecroix, president of the SPC.

If Interchanvre claims «cautious» On the issue of cannabidiol, it is because the organization has historically focused on industrial hemp. «Thanks to our efforts, the Paris 2024 Olympic villages will be built using hempcrete.". »A million vehicles are equipped with hemp-based bioplastics. We're industrial manufacturers, not small-scale producers working on their own,", says its director.

But with the CBD boom in full swing, the stakes are high. The market is estimated to be worth one billion pounds (1.2 billion euros) by 2025 in the United Kingdom, a country with a population and level of development comparable to France’s. And for some players in the French CBD industry, Interchanvre aims to «the status quo», so as not to disrupt its industrial sector.

To influence the decision, the organizations consult with policymakers. All three are «lobbyists»—a euphemistic term, better known by its English name lobby. In fact, they are identified as such by the High Authority for Public Life (HATVP), which lists the lobby groups associated with French politicians.

A grave betrayal

These tensions cannot be explained solely by differing views on cannabidiol. Human relationships also come into play, particularly when it comes to the UIVEC. The emergence of this third player was a painful process. «It’s always a bit strange when we part ways… It’s kind of like an ex-girlfriend.», “...,” Ludovic Rachou says softly. He served as the SPC’s treasurer for two years before founding the UIVEC in early 2021.

This move is viewed as a serious betrayal by the roughly 100 members of the Professional Hemp Union. Even today, relations between the two organizations remain frosty. «The SPC is a pioneer. It brought the issue of CBD to the forefront. But it brings together a wide variety of stakeholders: farmers, dietary supplement companies, and medical firms. They were also involved in the flower and textile sectors. When you’re a major player in the dietary supplement industry, you want to focus on dietary supplements.», explains the founder of UIVEC. His association therefore focuses exclusively on issues related to CBD in finished products (food, cosmetics, and animal feed).

At the SPC, they also highlight Ludovic Rachou’s new audience. «The UIVEC targets only the very largest players because of the barriers to entry it imposes. We do not share the same values,», says Aurélien Delecroix. According to the UIVEC presentation document, Membership costs 3,000 euros for a farmer and 5,000 euros for a manufacturer. «For us, it’s 900 euros», says Mr. Delecroix. For its part, the UIVEC highlights the influence of its members: « »€4.5 billion in revenue and 15,000 jobs in France".

The establishment of this new employers’ association also involves one of Interchanvre’s most influential members. Franck Barbier is the president of the interprofessional organization… and co-founder of UIVEC. How so? «It is not Franck Barbier acting on his own behalf", notes Nathalie Fichaux, head of Interchanvre. It's Planet Hemp [the company of which Mr. Barbier is president] »which is a member of UIVEC. We complement each other."

CBD stores that are «not represented»

And what about the end of the chain in all this? The nearly 400 CBD stores in France don't feel «not represented» by these three major organizations. That is the view of David*, the owner of CBD’eau, a network of more than 100 stores in France. «We were contacted about joining the SPC, but we don’t want to. We don’t see any effort on their part to represent us. They view us as the «bad guys» in the industry because some stores have engaged in misconduct that has did not comply with the THC limit. »

Recently, a number of initiatives by CBD store associations have emerged. One example is Collectif 420, led by Max Andrieu, a cannabidiol retailer based in the Hérault region. The CBD Union is another project, led by David. «We tried to start an association in the spring of 2020, with 80 people in a WhatsApp group. We had contacted a lawyer, but it didn’t work out because of Covid and the Kanavape ruling in November« , "Let's rewind," the manager said.

Ultimately, the CBD could become an economic sector like any other. Various organizations will represent a range of interests and diverse profiles. «That’s normal! It’s just the natural order of things.”, admits Aurélien Delecroix, the head of the SPC. »But be careful: the sector isn't fully established yet." With a new sector on the horizon: cannabidiol stores. And its own union?

*David did not want his last name to be included.