Understanding key manufacturing terms in the CBD industry
When it comes to producing (manufacturing) CBD products there are a number of named services available to clients. These are typically used across manufacturing in general and aren’t specific to CBD. The most common manufacturing service is dubbed ‘White Label’ which essentially means that a manufacturer has produced a ‘ready-to-go’ product that you can claim under your brand. This is in contrast to ‘Private Label CBD Manufacturing’ and ‘Contract Manufacturing’ which involve larger scale production of bespoke/new or existing CBD products. We offer all these services, but White Label tends to be the port of call for brands with a strict budget or those which want to test the market with a smaller amount of product.
White Label CBD Products also have the shortest lead time as they are formulated, tested and ready to go on the factory shelves. White Label CBD products are unlabelled i.e., ‘white’ or ‘blank’ products ready for use by any brand. They can be chosen directly by brands and are then labelled and/or boxed in line with the brand aesthetic.
Many CBD/cannabis product manufacturers offer a White Label service. For example, we create a wide range of premium CBD products including tinctures, capsules, balms, lotions and serums which you can claim as your own. If you are looking to launch a CBD brand or looking to add exciting products to your existing line, White Label CBD items are the ideal solution offering unique, superior quality products quickly.
The Technical Definition of White Label CBD
White label products are manufactured by a third party (US), not the company that sells it, or necessarily even markets it (YOU). The advantage is that a single company does not have to go through the entire process of creating and selling a product. One firm can concentrate on producing the product; another on marketing it; and another can focus on selling it, each according to its expertise and preference. The major benefits of white label branding are that it saves companies time, energy, and money in terms of production and marketing costs.
Our white label products are popular, tried and tested and good to go. White label is the most cost-effective route to market if you are looking to launch quickly and/or have minimal budget. As such, white label products are a great way to get your brand off the ground to make early sales and assessment of your market. Many of our clients initially launch with white label products and then go on to develop unique and protected products with us, via Private Label Manufacturing, to further differentiate their brand and offering.
Dr. Ed is an example of a successful Private Label brand.We create their unique recipes which are protected; this allows them to offer products that no-one else has.
Summary
White Label CBD products have a number of clear advantages, namely:
- Faster turnaround times
- Low minimum order quantities
- Wide range of popular tinctures and topical products
- Test your market with low financial commitment
However, they are not suitable for every brand. White Label CBD products are available to EVERYONE meaning they are not the best choice if you are aiming to carve out a very specific niche in the CBD market as your competitors also have direct access to these sorts of products. Creating unique products can be a very lucrative route via a Private Label partnership but comes with additional financial pressures including larger MOQs, R&D time and fees etc. Typically, Private Label is used by brands who have tested their market and wish to release a new product that cannot be obtained anywhere else.
As always, drop us a message for advice or a friendly chin wag and don’t forget to check out our other useful blogs on CBD Payment Processing, Insurance for CBD Companies and our checklist for starting a CBD brand.
