What opportunities for the CBD business in France?

While the French authorities seem very concerned The dangers of CBD cannabis with -0.2% of THC, the business of cannabidiol has never been more popular in France. Having become widely accessible through CBD e-liquids, cannabidiol is now sold in all its forms and in a wide variety of derivative products: oils, cosmetics, infused foods, concentrates… With no real regulation surrounding the raw product, there are numerous business opportunities in the CBD market.

What does the law say?

The french cannabis law does not consider CBD to be a narcotic and therefore permits its use. If we stick to a strict interpretation of MILDECA, CBD:

• must not be derived from hemp flowers
• cannot be sold as a drug if the product is not one
• cannot be combined with THC, even if it is below the legal limit of 0.2%

Those in the know will have noticed how strange this position is:

• Most CBD is derived from hemp flowers
• No French law requires that products derived from legal hemp varieties be completely free of THC.

In practice and under current law, CBD appears to be usable as one sees fit, provided the THC content does not exceed 0.2%. However, a recent statement from the Public Prosecutor’s Office cites a January 2018 ruling by the Marseille court that reaffirmed the ban on possessing products derived from a prohibited part of the hemp plant. This ruling is currently being challenged on appeal.

Which occupations are affected?

The CBD business obviously involves selling the final product, but that's not all.

Hemp, from which CBD is derived, can be legally grown in France. However, French law restricts the use of hemp to fibers and seeds. As a result, CBD is currently extracted from flowers primarily abroad. Nevertheless, the current debate surrounding CBD flowers could lead to their status being brought into line with European law, thereby opening the door to their commercial and industrial use. Consequently, CBD extraction on French soil would be facilitated, though with the requirement that THC levels not exceed 0.2% during the extraction process.

In terms of distribution, we might see CBD:

• at healthcare professionals' offices or wellness centers
• in grocery stores healthy
• in cafés or bakeries
• at stores that sell CBD flower
• across the entire wellness sector: nutritionists, fitness trainers, massage therapists, chiropractors…
• at veterinary clinics
• and, of course, online

Which products are affected?

You can create just about any product with CBD, although the most common ones include:

• CBD e-liquids, made primarily from PG/VG, CBD isolate, and organic monoterpenes
• CBD vape cartridges, which are more concentrated and sometimes made from actual cannabis strains
• Concentrates: isolate, wax, shatter…
• Full-spectrum oils and liquids: Unlike e-liquids, they are generally produced from whole plants, containing all cannabinoids and terpenes, and have a THC content of less than 0.2%
• CBD-Infused Food Products
• CBD flowers

As for the latter, you might wonder if the CBD cannabis flowers are legal in France ? The current answer is:

• French law prohibits the «industrial and commercial» use of hemp flowers
• European law does not restrict the use of hemp to certain parts of the plant and prohibits national laws from restricting trade in hemp

What kind of difficulties?

Every company operating legally in France—whether directly or indirectly—in the hemp or cannabis industry knows this: banks are reluctant to do business with companies whose primary line of business revolves around cannabis. Whether it’s opening an account, setting up a point-of-sale terminal for a store, or arranging online payment methods—for an e-commerce site, for example—it’s best to have a good relationship with your banker.