What to Look for in a CBD White Label Partner
Do you want to sell CBD products, but don’t want to spend the time and money to make them yourself? If so, white labeling with a CBD manufacturer may be the right choice for you. In this blog, we will explain what white labeling entails, the extensive benefits of white labeling, and what to look for in a CBD white label partner.
What is White Labeling?
White labeling involves two companies —a manufacturer and a retailer—working together to create one or more product. A white label relationship legally allows a company to place their brand name on a product or service that someone else produced, typically for a nominal fee. Most grocery stores have their own brand name (for example, Walmart’s is Great Value). But, this doesn’t mean that Walmart produces all of their own products themselves. Instead, they source them from manufacturers who package them with the Great Value packaging for Walmart to sell.
White Label vs Private Label
The terms white label and private label are often used interchangeably, which is incorrect. While both approaches involve one company manufacturing the product and another company putting their name on it to sell, retailers pursuing private label relationships control everything about the product to make it their own. This includes the specification of the design, ingredients and packaging. For example, say you have a family recipe for chocolate chip cookies. You find a manufacturer that can mass produce your cookies using your exact recipe, package them for you following your specifications (including branding with your company name), and ship the finished product back to you. You pay the manufacturer for the service and final product, but ultimately save by not having to purchase space, equipment and ingredients to operate your own production facility.
The Benefits of White Labeling
White labeling can provide retailers with a refined product and allow them to take advantage of expert work. Formulating CBD products is not necessarily an easy task and it is extremely important that manufacturers ensure they are compliant with state hemp laws. Commercial hemp manufacturing and distribution laws differ somewhat state to state, with each state having a chosen department to oversee CBD products and companies in the state. Some examples of these regulatory agencies include the Department of Public Health and Environment in Colorado, the Department of State Health Services in Texas and the Department of Agriculture and Consumer Services in Florida. These state departments are responsible for testing CBD products, inspecting manufacturing facilities, and overseeing labeling requirements.
If it is discovered that a CBD product goes against any state hemp regulations, the manufacturer could face a variety of different consequences that are deemed suitable by the state department. For example, if a CBD product is found to make false claims—containing significantly more or less CBD than advertised—or does not meet any of the specified labeling requirements, the manufacturer of the product could be fined, prosecuted or even shut down. However, if a retailer has a relationship with a manufacturer, it is the manufacturer who is held responsible for any products that are not up to standard. The retailer should place a high level of importance on the reputation of their brand, which means finding a responsible, qualified CBD manufacturer as a white label partner.
What to Look for in a CBD White Label Partner
Before choosing a CBD white label partner, research their reputation, product quality standards and where they source their hemp and other ingredients. It is important to find a manufacturer that uses organically sourced hemp and other high-quality ingredients. Although the never-ending debate of whether you should buy organic over non-organic products continues today, there is some pretty convincing evidence that using organic ingredients, especially organic hemp, is worth the extra dollar. Click here to learn more about the benefits of using organic CBD. Ultimately, it’s safe to say that the higher the quality of the ingredients used, the more effective the product will be, which can strengthen the loyalty of your customers and keep them coming back to buy more.
It is also important to understand the differences between manufacturers that make CBD isolates, broad-spectrum, and full-spectrum CBD products. The main difference between the three is which compounds of the cannabis plant they contain. While CBD isolate and broad-spectrum hemp products are extremely popular, it can be argued that they are not quite as effective as a full-spectrum product. This is because the effects against pain, anxiety or inflammation using a CBD isolate or broad-spectrum product may only occur at a specific dose, whereas the effects of a full-spectrum hemp tincture may increase as the dosage increases. Another debate that is constantly talked about throughout the cannabis industry is a phenomenon known as the entourage effect—the theory that all the compounds in cannabis work together, and when taken together, they produce a better effect than when taken alone.
Another factor to consider when looking for a CBD white label partner is whether they participate in third party testing or not. The purpose of third party testing is to provide an unbiased analysis of a manufacturer’s finished product and indicate the quality, purity and potency of a given sample to ensure retailers and customers alike that manufacturers are selling what they are promising. Considering that the hemp industry is still highly unregulated and third party testing is not mandatory for CBD products, companies can potentially lie about the quality or potency of their products. If a manufacturer is unwilling to test their product and is not transparent about their ingredients, it is probably worthwhile to consider other manufacturers who are.
Last but not least, it is also beneficial to find a company that offers unique and authentic products. With approximately 5,000 active CBD-hemp brands in the U.S. and Europe, the CBD market is becoming increasingly saturated due to high competition. With a continuous flood of new entrants as well as established companies adding CBD products to their product line, it may be difficult to stand out from other retailers selling CBD products since consumers are already overwhelmed with many of the same or similar products. Finding a manufacturer to offers unique and specialty products can make your company stand out and catch the eye of your customers.
Why White Label with Vera Herbals?
As an established CBD manufacturer for the last three years, Vera Herbals know the ins and outs of the industry and is looking to build relationships with retailers. Vera Herbals has everything you are looking for in a CBD white label partner including:
- We use organic, high quality, local (whenever we can!), and ethically grown ingredients.
- We use some of the best hemp extraction methods that produce unique, full-spectrum CBD products, including spagyrics and rosin.
- We conduct third party testing of all our CBD products to ensure their safety, purity and potency.
- We practice sustainable business practices and always use recyclable and compostable packaging, upcycle shipping materials, and source ethically grown ingredients. Vera Herbals is constantly making steps to becoming a 100% waste free, zero emission company.
Click here to check out Vera Herbal’s hemp and other herbal extraction offerings!
After learning about the many benefits of white labeling, it is easy to understand why it is very popular among retailers. Not only can white labeling save you a significant amount of resources, it can also increase your profit margins and allow you to add a top quality, trustworthy and effective product to your product line. While many manufacturers offer white labeling opportunities, it is essential to find a white label partner that is reliable, trustworthy, authentic, sustainable and has high standards. Vera Herbals has all of these qualities and more. We are dependable, we are unique, we make products that change lives.
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Leonard, Jane. “Cbd isolate: Uses, effects, and benefits.” Medical News Today, MediLexicon International, 11 Mar. 2020, www.medicalnewstoday.com/articles/cbd-isolate. pectrum-cbd#what-it-is.
Thompson, Ruby. “What Is Full-Spectrum CBD? PLUS, 7 Best Products to Try.” Healthline, Healthline Media, 21 Jan. 2021, www.healthline.com/health/full-spectrum-cbd.