White labeling is a common term in business and product industries. A white label product by definition, is “a product or service produced by one company that other companies rebrand to make it appear as if they had made it.”
With the emergence of CBD on the market, it was only time before white labeling services were available to the industry as well. And, they’re just now growing in popularity.
So how does white labeling work in the CBD industry, and is it right for you? Let’s take a look at CBD white labeling to see if your brand should jump in, too.
White Labeling CBD & THC Products
Many large hemp operations have begun to diversify with white label services. This means one CBD product brand you may really like, might begin from another.
The difference in products will lie in their appearance. When you partner with a white label brand, sometimes you must supply the packaging appearance. Like your logo, or branding material to adhere to the white labeled or blank product. It’s worth asking.
Typically white labeling CBD & THC products can work in two ways.
1. You can purchase the ‘unlabeled’ products yourself and package and a label them yourself. If the product is THC related, you’ll want to make sure appropriate Certificate of Analysis are provided which meet local regulations.
2. You can pay an additional cost to supply your own branding art. The white label service will then print, and affix them to the final product. This is the more hands-off approach. Some companies will even go as far as helping you advertise your products and services as well.
Alternatives to white-labeling
1. You can grow hemp yourself, or buy the hemp wholesale, find a processor to turn the flower into CBD, but you package and label the products yourself
2. Find a processor offering CBD and THC products wholesale (already processed / bulk / unlabeled) you buy the packaging and supply labeling.
Why go with White Labeling?
The risks and pains of producing, processing, packaging, labeling while adhering to local guidelines, can be cumbersome for many growers or producers. White label products are produced by reputable processors, and give you the benefit of CBD market growth without the work of everything just discussed. One can simply slap their logo on the side of a new CBD balm, tincture, edible or other product and begin selling it as their own very soon. This is great for companies who want to brand products as themselves, yet don’t want to grow the hemp, process it into CBD, and go through all the motions of production.
And speaking of market growth, the CBD industry is booming. Within 6 months of legalization, 6% of Americans were already consuming CBD. This is expected to grow exponentially as the health and medical benefits of the compound increase. In fact, current projections show the CBD market will reach nearly $2 billion over the next three years.
How should I choose a White Label service?
There are a few things to question before partnering with a CBD white label manufacturing company. First, you’ll want to determine the quality and contents of the product as this will affect start-up costs and the ability to resell.
Things to ask and look for when speaking to white label companies
- Do you have a catalog of your products?
- Do you offer bulk pricing?
- What is your scope of work?
- Look for testimonials and reviews about the company or other companies they produce for
With a flood of new brands on the CBD market, you’ll also want to ensure you’re not competing with your white label service. Check with the manufacturers to see if they sell their white label product directly, under their own brand.
Compare the prices on the market, the price you’ll have to pay, and the return on investment for each product or service you’re considering. Some white label brands might offer a quality product, but can’t return well on profits.
You might want to ask your white label service what they do in-house, versus using third party companies for (like printing or testing). This can affect your overall cost, or timelines.
In addition to best business practices, there are a few things you should require in regards to licensing and safety. These include –
- Department of Agriculture or local health department license
- Plus a food or cosmetic safety program certification, if applicable
- Proper insurance coverages
- Compliance and reports of health inspections
- Testing methods and standards
- Plus reports of contents, reporting terpenes, purity, CBD and compound levels
- Compliant with OSHA and HAACP
Quantities & Expense
Another consideration to have when choosing white labeling, is quantity and upfront expense. On average when white labeling, you’re looking at a $10,000 – $15,000 upfront expense. That can return greatly, if you brand successfully. But be sure to check the minimum order quantity with the white label brands you’re reviewing. Most require a minimum order quantity, that will ultimately affect your initial cost.
If you’re looking to capitalize on a growing CBD market, than the work it takes to brand a white label product might be for you. With capital in mind, be sure your brand is set from the beginning for the most profitable outcome. Check out our top quality white labeling services, and products available to partner with, today.