Say you want to launch a CBD brand by next month. You might think it an impossible task, but in 2022, it’s not.
White label services are growing more and more popular in the wellness space, with expert manufacturers making it easier than ever to launch a brand. Having the option to white label CBD products means it has never been easier to jump on a trend.
How does it work?
The manufacturer sells a shelf-ready product to a brand, typically with a white label on the packaging. Although the brand buys the order to sell under its own name and creatives, it doesn’t own the formulation. The brand releases the product as its own and orders more if it sells.
For many, white labelling – or private label manufacturing – is a cost and time effective route to market as it allows for launching a brand within a very short window with a small team. It presents a minimal involvement option for brands who need to launch a quality range quickly, compared to doing everything in-house.
It removes the need for a manufacturing site, formulation experts and ingredient sourcing.
In some cases, the convenience of launching an off-the-shelf product is passed onto the consumer, who can enjoy buying quality products without a premium price tag.
According to online retail experts at Shopify, white labelled goods are often cheaper for the consumer to purchase than the custom variety, because they are usually generic and mass manufactured.
Is white labelling CBD popular?
CBD is the latest in a long line of product categories to reap the benefits of this method. According to global data platform Statista, the market share of private label goods in Europe takes up between 20% and 50% of unit sales.
Leading e-commerce facilitator Shopify agrees:
“Selling white label products is an easy option for those looking to jump on a trend or avoid having to make or manufacture products on their own.”
What you need to know before white labelling CBD
“The idea with white labelling is that you have the best possible chance of success with good quality products, consultancy and knowledge of the industry,” according to Steve Batchelor, marketing director for British Cannabis, the leading experts in cannabinoids.
Founded in 2015, on the cusp of the emergence of CBD in the UK, the company is embedded in growing, extracting, analysing and manufacturing for the sector.
Steve says finding a compliant white labelling partner is the first thing any brand should do on a quest to launch a CBD product in 2022.
“Your manufacturer should be able to supply you with evidence to show they have submitted their finished formulas to the Food Standards Agency as part of the novel foods process. In the UK, we have faced regulation changes, so there is a potential sticking point with white labelling that may mean you take a greater risk if you’re new to the market. British Cannabis is confident we will be able to support new and current white label clients moving forward.”
Steve says there are 12 key points to consider before settling on a manufacturer for your brand.
12 things you need to know (and do!) before launching your CBD brand in 2022
- Know the law and marketing restrictions on CBD – focus on what you can say about your product.
- Develop a strong business plan – consider the channels your products can perform best in.
- Find a reputable CBD supplier.
- Know your products. From every label to each drop of oil, you are the guardian of your products.
- Establish a professional brand that resonates with a target audience.
- Get social – consider which social media platforms you can use in which ways.
- Optimise your website – keywords and search engine optimisation are critical to attract traffic.
- Understand challenges in the cannabinoid industry – consider which countries / markets you can sell into and determine if the laws and regulations on CBD products will allow your entry.
- Research the best e-commerce platform.
- Continue building fresh, relevant, seasonal content for your digital platforms. .
- Determine shipping and payment terms.
- Market your business – consider what advertising, PR, sponsorship and influencer marketing will appeal to your target audience.