With its roots in the food industry, white labeling is the practice of producing a product in mass quantities that brands can then put their names on and distribute. White labeling has now come to the CBD market, making it important to weigh the pros and cons of private label CBD versus going it alone. In this guide, learn what CBD white labeling is, and find out why it’s a great idea for CBD companies that are just starting out. For a CBD startup, white labeling can be a smart move to cut costs and accelerate time-to-market while maintaining brand reputation.
What Is White Labeling?
White labeling is when a company that already has sophisticated manufacturing equipment makes large quantities of high-quality products, which it then offers to smaller companies to brand and sell either in brick-and-mortar or online environments. This practice benefits white labelers by providing opportunities to offload their massive inventory and helps smaller companies that lack the wherewithal to purchase or house the type of equipment necessary to make truly excellent CBD products.
Setting up a white label CBD relationship is usually quite easy, and there are now a large number of competent, trustworthy CBD white labelers to choose from. Only one company will be perfect for your needs, though, so make sure to select carefully.
Status of the CBD Industry
Why is working with a white labeler the best option in today’s CBD industry? Let’s take a look at recent market history to get a clearer picture.
When CBD first burst onto the scene in the mid-2010s, the companies that took the initiative and simply put products out there — regardless of their quality — were the ones that got all the attention and rose to the top. As the CBD industry became more sophisticated, though, it began operating like any other consumer goods market: Shoppers became pickier about quality, rewarding companies that took the time to manufacture effective, contaminant-free CBD.
Nowadays, those large producers have raised the bar of quality so high in the CBD industry that small companies just starting out can’t hope to compete without massive private investment. Not only will it be hard to get your brand noticed in the sea of CBD products shoppers must now wade through online, but consumers are now so picky about CBD quality that your offerings must be truly pristine or they will be wholly rejected.
Existing Producers Have the Advantage
There’s no doubt that the top 10 largest brands in the CBD industry have now consolidated their advantage. The same thing happens in any consumer item submarket — can you name more than 10 brands of soft drinks or potato chips off the top of your head?
Certain CBD big-shots, however, aren’t stingy when sharing the benefits the industry has delivered. These established CBD brands have pivoted to white labeling, allowing other companies to take advantage of the time-honored processes they have developed as the CBD industry evolved.
Working with a White Labeler is Easier and More Rewarding
Starting a CBD company from scratch is exhausting. Here are just a few of the factors you’ll need to consider and tasks you’ll need to accomplish:
- Acquiring a suitable commercial space
- Acquiring all relevant certifications and licensing
- Hiring and managing production staff
- Performing effective quality control
- Coming up with worthwhile product ideas
- Formulating all of your own products
- Sourcing endless ingredients
- Coming across unexpected costs
- And so on…
When you work with a CBD white labeler, you can cut the number of headaches of running a CBD business by at least half. No need for production space — an office for managing the brand and boxing products for shipment will be enough.
You’ll be able to run a skeleton crew while focusing all your talent on building an excellent brand that consumers will trust. With the legwork of formulating, bottling, and labeling products out of the way, all you’ll need to do is make sales and ensure your shoppers are satisfied.
How to Get Started with White Label CBD
Getting started with a white label CBD business is designed to be easy and usually only takes a single phone call. Beginning with product samples and establishing overall plans, you and your CBD white labeler will develop a unique approach that best suits your goals.
The CBD industry may have changed, but it’s just as rife with opportunity as it ever was. The best opportunities now lie in the arena of CBD private labeling — embark on your own white label CBD adventure today.