As the cannabis industry continues its explosive growth in the US, white labeling is becoming more common in the solventless sector. White labeling means using a third party to manufacture your products, and then rebranding them as your own. Essentially, you take a product that is already developed and produced by another company and sell it under your own brand name, logo, and packaging. 

Brands that keep manufacturing in-house are referred to as vertically integrated, or “single source” meaning that they do not rely on third-party vendors to manufacture their products. However, this can get a little nuanced, since some brands might obtain their starting material from a third-party farm, while doing the actual extraction in-house. This would not be considered white labeling. 

White labeling allows companies to offer a product without investing in its research, development, or production. Instead, they focus on marketing, distribution, and customer service. This approach is commonly used by retailers, online businesses, and startups to quickly enter a market or expand their product offerings.

When a product is white-labeled, the original manufacturer is often invisible to the end consumer. The reselling company takes ownership of the product and assumes responsibility for marketing, sales, and customer support. This allows them to establish their brand presence and build customer loyalty.

White labeling can be beneficial for both parties involved. The manufacturer gains additional revenue streams by selling their products to other companies, while the reseller benefits from a ready-made product to sell under their brand, reducing time and costs associated with developing a new product from scratch.

It's important to note that white labeling is different from private labeling. With private labeling, the manufacturer allows customization of the product with the reseller's brand, while white labeling typically involves selling the product as-is, with minimal or no customization.

What Products Are Typically White Labeled in Solventless?

Any kind of solventless cannabis products can be white-labeled. The only limitation is the offering of whichever white label partner that you choose to work with. From vape cartridges and rosin to bubble hash and gummies, the options are wide open. 

That said, jarred flowers and pre rolls are a couple of the most common white-labeled products in the cannabis industry. 

Benefits of White Labeling

Assuming that solventless extraction and processing isn’t your brand’s core competency, outsourcing manufacturing via white labeling can enable you to focus on what you do best. Let’s look at a few upsides that white labeling can offer. 

With a white label partner, you can forget about production equipment, facilities, and a separate team to manage. 

Reduced Time to Market - Instead of spending time and resources on developing a product from scratch, a white label manufacturer provides you with a ready-made product that is already developed, tested, and produced. This eliminates the need for extensive research, design, prototyping, and manufacturing, allowing you to launch your product faster.

Meeting regulatory requirements and obtaining certifications can be time-consuming and complex. White label manufacturers often have expertise in navigating regulatory frameworks and have already obtained the necessary certifications for their products. By working with them, you can benefit from their compliance knowledge, reducing the time required to ensure your product meets the necessary regulatory standards.

Since the product is already developed and manufactured, you can quickly launch it under your brand name and start selling. This allows you to capitalize on market opportunities without investing excessive time in product development, enabling you to establish a presence and start generating revenue sooner.

Ability to Scale Rapidly - White label manufacturers have established production processes and supply chains in place. They have already fine-tuned their manufacturing operations, ensuring efficient production and timely delivery. By partnering with them, you can leverage their streamlined production capabilities and avoid delays and complications associated with setting up your own manufacturing operations.

By leveraging a white label product, you can allocate more resources and attention to marketing and sales activities. With the product itself already taken care of, you can concentrate on creating effective marketing campaigns, building distribution channels, and engaging with customers. This accelerates your ability to scale and helps you gain a competitive edge.

Cost Cutting - Developing a product from scratch can be expensive, requiring extensive research, design, prototyping, and testing. By working with a white label partner, you eliminate or significantly reduce these development costs. The partner has already invested in the product's development, and you can leverage their existing expertise, equipment, facilities, and extraction team, saving on production expenses.

White label manufacturers often produce products in large quantities to serve multiple clients. This allows them to benefit from economies of scale, such as bulk purchasing of raw materials, lower production costs, and more efficient utilization of manufacturing facilities and equipment. As a result, the per-unit manufacturing cost for your product can be lower when working with a white label partner compared to developing and manufacturing it independently.

partnering with experts in solventless extraction workflows, you can access their cost-effective manufacturing capabilities, saving on operational expenses associated with setting up and managing your own manufacturing facilities.

Disadvantages/Risks of White Labeling

While white labeling partnerships can be a great way for brands to gain exposure in the market, outsourcing your manufacturing also presents some potential downsides. Let’s look at a few. 

If the manufacturer doesn't prioritize quality as much as you do, it may lead to inconsistencies or compromises in the product's quality.

Reduced Product Customization - While the white label manufacturer manages the supply chain, you may have limited visibility and control over the sourcing of raw materials and components. This could lead to potential quality issues if the manufacturer compromises on the quality of materials or sources from unreliable suppliers. Substandard materials or components could negatively impact the overall quality and reliability of the product.

White labeling often involves selling a product as-is, with minimal or no customization. This limited ability to customize the product according to your specific quality requirements may result in compromises. The product might not fully align with your brand's quality standards or unique specifications, potentially impacting the perceived quality of the offering.

Vulnerability to Untrustworthy Partners - With white labeling, you are relying on the manufacturer's consistency and commitment to maintaining high product quality. However, there is a risk of variability in the quality of the products received. Different batches or production runs may exhibit variations in quality due to factors such as changes in manufacturing processes, sourcing of materials, or adherence to quality control protocols. This inconsistency could harm your brand's reputation if customers receive products of varying quality.

Working with a quality manufacturer that can earn your unwavering trust is key. 

Limited Product Offerings - If you want to branch out and offer a new product to the market, you’re limited to whatever is on your white label partner’s existing menu. 

Is While Labeling Right for Your Brand?

Deciding whether or not to partner with a third-party manufacturer boils down to two main considerations:

1) How will this partnership impact the quality of my product and therefore my brand's reputation? 

2) How will it impact my brand's bottom line?

Some brands, particularly those built around a well-recognized or uniquely talented lead extractor, will find their competitive advantage by keeping solventless production in-house. 

Building a brand identity around consistently high-quality products, premium source materials, impeccable solventless extraction processes, etc. is well-worth the extra costs associated with vertical integration if brands can get it right. 

If design, aesthetics, branding, marketing, sales, and customer service are the core competencies of a cannabis company’s leadership team, then white labeling can be the ideal path to success. 

Conclusion

White label Partnerships can allow cannabis brands to capture market share more rapidly than they could as a vertically integrated operation. However, this isn’t the solution for every brand. If a brand’s core competency is solventless extraction expertise and production know-how, then it makes sense to lean into this advantage instead of outsourcing it to a partner. 

To mitigate risks involved with white label manufacturers and maintain control over quality, it is crucial to carefully select a reputable and reliable white label manufacturer. Perform due diligence by evaluating their manufacturing processes, quality control measures, and track record. Establish clear quality requirements and communicate them effectively to the manufacturer. Regularly monitor and audit their manufacturing and quality control practices to ensure they meet your standards.

Additionally, consider obtaining samples or conducting quality testing to verify the product's quality before launching it under your brand. This can help you identify any potential issues early on and address them proactively.

Ultimately, maintaining quality control when white labeling requires diligent supplier management, effective communication, and ongoing monitoring to protect your brand's reputation and ensure that customers keep coming back for more.

Thoughts? Let us know by joining our secret Facebook group. Hang out with a community of like-minded solventless heads like yourself. Ask our head extractor questions, share your latest press and learn from hobbyists and experts in the industry.

FREQUENTLY ASKED QUESTIONS

What is white labeling?
White labeling means using a third party to manufacture your products, and then rebranding them as your own. Essentially, you take a product that is already developed and produced by another company and sell it under your own brand name, logo, and packaging. 

What cannabis products can you white label?
Almost any cannabis product you can think of can be white labeled, including vape cartridges, rosin, bubble hash, pre-rolls, and flowers. 

What are the advantages of white labeling cannabis products?
Some advantages of white labeling cannabis products include minimized complexity for your operation, reduced time to market, ability to scale rapidly, and cost cutting. 

What are the disadvantages of white labeling cannabis products?
Some disadvantages of white labeling cannabis products include outsourcing quality control, reduced product customization, vulnerability to untrustworthy partners, and limited product offerings. 

Should I white label products for my cannabis brand?
Deciding whether or not to partner with a third-party manufacturer boils down to two main considerations: 1) How will this partnership impact the quality of my product and therefore my brand's reputation? 2) How will it impact my brand's bottom line?