CBD's popularity has exploded since it was removed from the Controlled Substances Act in the 2018 Farm Bill. This has left many startups, small businesses, and established businesses looking for ways to get in on the CBD rush. CBD went from being virtually unknown to being sold in every corner shop in town. But how can you offer CBD to your customers? You have a couple of options — white label CBD products and private label CBD products.
In this article, we’ll cover what white label and private label means, which one is better, and how you can get started selling wholesale CBD products.
White Label CBD Products
White labeling is a common wholesaler practice where a manufacturer produces a product and that product is rebranded by another company for resale purposes. So for example, if you shop at a grocery store like Walmart, you’ll find many products with the Great Value brand. That’s white labeling in action.
White label products are generally generic. Meaning, the same formula is sold to multiple different brands and is then rebranded to fit the purchaser’s brand.
Let’s say that two retailers purchased the same white label CBD product — the only difference between the two products would be the branding and packaging. The formula and ingredients of the product would be identical.
White labeling is a good option for those who already have an established brand because it lets you take an already successful product and rebrand it as your own. But it could be riskier if you don’t have an established brand as you’ll be competing against name brands.
Private Label CBD Products
Private labeling is another common wholesaler practice where a manufacturer produces a product in collaboration with another company. So, while it’s similar to white labeling, it’s different because the retailer plays a more active role in the creation of the product.
In other words, private label products are not generic like white label products are.
New products can be created or developed under a private label solution. This makes it easier for retail brands to differentiate their CBD product compared to the other CBD products on the market.
Private labeling is a good option for both those with established brands and those without because you can create your own brand name for each product you produce.
White Label vs Private Label
Perhaps the biggest difference between white label products and private label products is the price. White labeling tends to run cheaper than private labeling since you’re getting an already formulated, generic product with white labeling.
But you get what you pay for. And many unestablished and established brands find that selling white labeling products is harder unless you have a raving customer base or top-notch marketing as you’ll be competing against better-known brand names.
Private labeling runs more on the expensive end, but it’s more involved. Instead of purchasing a generic CBD product, you work alongside the manufacturer to create a custom formula and product to best fit your brand. This also helps you play the marketing game on “easy mode” since there will be greater differentiation from private label CBD products compared to white label CBD products.
How GenCanna Can Help
Whether you’re looking to promote a white label CBD product or a private label CBD product, we’re here to help you. At GenCanna, we offer both a Private Label Program and a Quick Start White Label Program.
We will either work alongside you to create a custom CBD product for your product line or you can choose from our selection of white label CBD products to offer to your customers.