4 Advantages of Using Private Label for CBD


The CBD market continues to mature and is a rewarding industry for CBD-based businesses with continuing growth prospects. While there are several ways for entrepreneurs and businesses to enter the CBD industry, private labeling is one of the most popular approaches.  Here’s our list of the top 4 advantages of using private label for cbd.

Firstly, the basics: what does “private label” even mean? This term extends to nearly any industry and product, not just CBD. Private label means that a third party makes – and sometimes sells – products under your brand name. You do the “creating,” they do the “making.” For example, Safeway doesn’t make every loaf of bread with their label. Someone makes it for them, and puts their label on it.

Now, the 4 advantages of using private label for CBD.

  1. You do not need to obtain a manufacturers license or other local/state/federal requirements.Typically, a manufacturer’s license is required to create your CBD products from scratch. It is to ensure that you are informed and following of all of the regulations governing the production of CBD products. This ensures that you are then promoting and selling a product that meets or exceeds minimum requirements.However, obtaining a manufacturer’s license involves much work, money, and time. You would be undertaking a major investment of time and capital, that is not an efficient use of either one.
  2. It greatly minimizes your upstart capital requirements.

    It is hard to underestimate the amount of capital is requires to set up your own CBD manufacturing facility. Consider just the basics: finding a shared lab facility that allows you to manufacture your products. Or creating your own, which is a massive use of time and capital, including finding a location, licensing, construction, equipment, storage and more. Even then you’ll need to have chemists and experts in health care product manufacturing.  It’s truly a significant undertaking, especially for a small or medium sized business. If you’re reading this you are probably starting your own CBD company.

    3. Your products will be a higher quality right from the start.

    Startups always have a steel learning curve. But, customers are not very forgiving and if they don’t like a product they won’t purchase them again. You need to launch with top-quality and market-tested products. If you were to use Beyond Botanicals as your third-party manufacturer, for example, you’d know that the products have been refined and improved over time to meet exacting standards and are of the highest quality. They’ve also been sold online and through national retailers. If you look at your journey to launching your own CBD brand as a journey with ten steps, using a private label manufacturer lets you hop right over to step five. Click here to learn about GMP standards.

    4. You can “hire out” your learning curve.

    In most restaurants, the owner is not necessarily the chef, and for good reason. Most of us have creative or business skills, and rarely both. It’s the same with private label CBD manufacturing. You have the idea, the branding, the capital and the business acumen, but do you know chemistry? Herbal formulation and sourcing high quality ingredients from around the world? CBD product packaging? How about the ins and outs of CBD lab testing? It’s unlikely your competencies and specializations extend to all areas.

    When you hire a third-party manufacturer, it allows you to focus on the bigger picture, the branding, the marketing and the numbers, while the nuts and bolts of making the product are done by the ones who do it best.

    It’s not a sales pitch to say you should use a private label manufacturer for your CBD brand. It’s more an introduction to the path of least resistance for your new business and a way for you to leapfrog your CBD brand well past early startup phase and right into market-ready products. Understanding these 4 Advantages of Using Private Label for CBD will help on your journey to starting your new business.

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