Marijuana Business Magazine - May-June 2018

U ruguay’s recreational cannabis market launched last year, but opportunities are limited for now.That may change, however, as the government considers revisions to the law. The recreational marijuana law in this country of 3.4 million people allows for a small number of licensed commercial growers. But, so far, the government has approved only two: ICC Labs and Symbiosis. Both already are cultivating for a small customer base of slightly more than 22,000 people. Retail offers potential opportunities. Here’s what you need to know about that sector: • Uruguay requires people who shop for legal recreational marijuana to register with the government. • Margins are also low, with the price of a gram fixed at $1.40. Of that price, 90% goes to the grower. •That may explain why only about a dozen of the country’s 1,000 pharmacies, which are the only approved outlet for marijuana sales, have applied to sell cannabis. • That may change this year, however, after the government announced a plan to create cannabis sales centers that would be allowed to accept only cash. But how will that new retail system function? Will the price per gram remain capped at $1.40? Whether it will leave the door open for international involve- ment remains to be seen, but if the sales centers are to be viable, the $1.40 price cap will have to go. The only other opportunities may be in hemp cultivation, as several companies – including some with Canadian involve- ment – also obtained licenses to cultivate that plant. URUGUAY Industry: Recreational Marijuana Uruguay GOING GL BAL 74 • Marijuana Business Magazine • May-June 2018 A