Private labelling, or white labelling, is a popular option for brands looking to enter the CBD space. Private labeling is the act of placing your own brand or label on a product. As a retail strategy, private labeling is not new. For decades big grocery stores have taken generic items, labeled them as their own, and set them on the shelf right next to products with household brand names.
There are several companies specializing in manufacturing end-to-end finished CBD products and commonly providing third-party test results, certificates and data to verify the purity and potency of products created. Technically, all new brands need to do is place their label on the package and start selling! However, establishing a successful private label CBD brand will inevitably mean various challenges need to be overcome.
Here are top tips for you to overcome challenges in the private label CBD industry.
Securing Quality Sources of CBD
Finding the right partners to work with is a must. The best way to source credible and trustworthy suppliers and manufacturers is to look for certifications and audits from third-party agencies. These include the Global Food Safety Initiative (GFSI), the Safe Quality Food (SQF), the United States Department of Agriculture’s (USDA) organic certification program and others. Look for the USDA organic seal to help identify which manufacturers are trustworthy and can produce a range of organic products.
From the perspective of consumers, certifying your products as organic is an additional way to provide both supply chain transparency and increase confidence when trying new CBD products. It also provides a form of quality assurance to skeptical consumers, especially those who avidly read product labels prior to making a purchasing decision.
Creating a Unique Product
Innovation and creativity will perpetually be the crucial factors in the highly competitive nature of the CBD marketplace. New ingredient innovations such as water dispersible materials are big game-changers. From chewing gum to energy drinks, the opportunities for new and unique CBD products under your own private label are limitless.
In the past, product differentiators involved third-party lab testing or providing COAs — today that’s just industry standard. The USDA organic seal is becoming one of the hemp industry’s most coveted certifications because it is a product differentiator.
Trustworthiness, transparency and traceability are important factors for consumers to consider when shopping for products. These factors should also be considered when producing products and while vetting vendors, partners, stakeholders and supply chain suppliers.
Credible certifications allow consumers to make informed decisions while feeling confident that they are purchasing products from reputable sources. Research has shown that today’s CBD market lacks credibility while consumers are desperately seeking comfort and are eager to purchase from trustworthy brands.