An image of a preroll packing machine for commercial preroll production. — Image of Atomic Closer 2.0 provided by STM Canna.

Build Your Brand Using Cannabis White-Label Manufacturing

December 13, 2024 Omega

As the cannabis industry becomes more competitive, many businesses are turning to white-label manufacturing to expand their product lines without incurring the significant costs of research, development, and mass production. By leveraging the expertise of white-label OEMs (Original Equipment Manufacturers), cannabis dispensaries and retail shops can focus on strengthening their brand while outsourcing production.

Let’s dive into how white labeling works, the benefits it offers, and steps you should keep in mind to help ensure success.

White-Labeling Recap

Essentially, white labeling involves sourcing products from a third-party manufacturer and selling them under your brand name. For cannabis businesses, this can include everything from pre-rolls and edibles to tinctures and topicals. For a more comprehensive definition of white labeling, check out Part 1 of our white label series: What Is Cannabis White Labeling?

The cannabis white label approach allows you to sidestep the complexities of developing new products from scratch, enabling you to launch faster, save money, and build a recognizable brand in an ever-evolving market.

The Benefits of White Labeling

Now that we have a firm grasp on how white labeling works, let’s explore the tangible benefits this strategy can offer your cannabis business.

1. Faster Market Entry

White labeling allows you to skip the lengthy product development phase, helping you respond quickly to trends and opportunities in the market. This is especially important in an industry like cannabis, where laws and consumer preferences change rapidly.

For example, with Ohio’s upcoming pre-roll legalization (Rule Package 6), businesses can either invest heavily in production equipment or partner with a white-label OEM to immediately jump into the market and mass-produce pre-rolls. The latter provides a faster and more cost-effective route, ensuring you’re ready to meet demand as soon as new regulations take effect.

2. Reduced Costs

Developing new cannabis products requires significant capital investment in equipment, facility space, parts and materials, and skilled labor. White-label manufacturing eliminates a good deal of these costs.

For example, white-label manufacturers benefit from economies of scale, producing large quantities of products at a lower cost per unit. This results in significant cost savings for the original cannabis manufacturer and retailer.

It’s not just about saving money; it’s about freeing up financial resources to focus on brand-building, social media marketing, and efforts to increase sales. And of course, sometimes reducing costs is simply about operating more profitably.

3. Focus on Branding and Marketing

It can be difficult to hone and develop your brand while operating a bustling cannabis dispensary or adult-use retail shop. White labeling allows you to focus on building your brand and attracting new customers.

A young marketing team that consists of a racially diverse group of professionals, taking notes and conducting a whiteboard exercise at the front of the room. — Using a white label manufacturer to bring your new product line to market (for example, prerolls) allows you more time to focus on your business’ marketing strategy. You can focus on how to package and market your new cannabis products while your OEM focuses on manufacturing quality products intended to be stamped with your brand.

When you leverage white labeling, your energy can be focused on:

Crafting a compelling brand story for your business. Tell people your story and set yourself apart.
Engaging customers through targeted marketing campaigns. This can be in person at a booth or marketing within your state’s legal guidelines.
Creating a memorable unboxing experience with premium packaging. “Wow!” your customers with an attractive first impression.

Especially in the cannabis industry, strong branding is often the difference between standing out or blending in.

4. Consistent Quality Control

Reputable white-label manufacturers prioritize consistent product quality, adhere to industry standards, and ensure your products align with your brand’s promise to deliver a top-shelf toke. Consistency in quality builds customer trust and loyalty—an essential factor in retaining repeat buyers and new business.

A lab technician is testing samples of cannabis products to ensure quality control. They are wearing white, latex gloves and are holding a steel vial. — Building a world-renowned brand takes creativity, experience, and a product that maintains the exact same quality and experience time after time, toke after toke, cookie after cookie. A quality white labeler will be constantly testing its products for contaminants and cannabinoid concentrations. Consistency and quality are what they do so you can focus on growing your business.

In addition to your business’s reputation, reliable OEMs are already familiar with your state’s laws and regulations surrounding cannabis processing and manufacturing. This is a huge burden white labelers take upon themselves for the opportunity to scale their products and generate revenue from already established cannabis brands.

Steps to White-Labeling Success

White labeling is more than just slapping your logo on a product—it requires skillful planning and execution. Below are six tips on how to leverage white labeling successfully.

1. Refine Your Brand Identity

Your brand identity should be baked into your business strategy and guide every decision, from product selection to packaging design. Your dispensary’s unique combination of visual aesthetics and upbeat social ambiance will distinguish your company from competitors and create a lasting impression with customers.

A glass cylinder designed to hold fresh cannabis buds and flower. The branding on the label states, "Calibud." — Calibud has been mastering cultivation for over twenty years. In addition to their highly popular buds, they’ve honed their branding to be immediately visible and representative of the quality flower packaged inside.

Your retail shop’s brand includes your logo, color scheme, typography, your budtender’s tone of voice, and overall messaging, as well as your company’s values and mission statement. Before you lay your first brick or launch a new product, always remember to clarify your:

Target audience: Who are your customers?
Brand voice: What tone and messaging resonate with your customers? Cannabis businesses can often get away with more slang and urban-speak.
Unique selling proposition (USP): Why should customers choose your brand over competitors? It’s not just about THC concentration anymore.

A strong cannabis brand identity communicates the company’s personality, whether it’s premium, sustainable, medicinal, or recreational, and helps build trust and loyalty with your target audience.

2. Select the Right Products

In the foodservice industry, a new entrée is often exciting and fun to try, especially for the venue’s regular clientele. In the cannabis industry, although experimentation is also part of the scene, there are standard products your customers will expect to be served. These include a variety of baked edibles, a pre-rolled joint, or a tincture with a beverage of choice as a chaser.

Whether you are entertaining cannabis connoisseurs in your consumption lounge or supplying local, licensed businesses with premium manufactured cannabis products, it’s all about supply and demand. Gummies, prerolls, and flower are must-have offerings at your business. From there, zero in on who your customers are. Are you attracting a specific niche, or have you tapped into the steady flow of casual cannabis consumers?

A cannabis manufacturer holds a mechanically filled and sealed preroll cone. There is a large pile of prerolls below in a container. — With a growing number of states, including Ohio, making legislative changes to allow cannabis prerolls, choosing a white label manufacturer that already has the equipment and processes to mass-produce prerolls can significantly save you time and money.

When considering a new product line, identify products that:

Align with your brand: For example, if your brand emphasizes wellness, focus on CBD tinctures or low-dose edibles.
Meet market demand: What are your customers asking for?
Complement existing offerings: Ensure the new product fits seamlessly into your lineup.

Don’t miss opportunities to gather data, and then allow what you learn to inspire your business and marketing strategies.

3. Choose a Reputable White-Label Partner

As in all lines of business, not every OEM concerns themselves with quality, and not all manufacturers are created equal. In Part 3 of our series, we’ll dive into the details and strategy of choosing the right white-labeler. Until then, we recommend searching for a partner with:

Proven experience in cannabis manufacturing.
A track record of compliance with local and state regulations.
Transparent processes and quality assurance measures.

There are highly skilled white label partners out there. Some are exceptionally skilled in foodservice manufacturing and can process medical-grade cannabis products. One such business is the highly esteemed, Ohio family-owned cannabis manufacturer, BeneLeaves. If you’re not familiar with BeneLeaves, we recommend you read our article on the VP of BeneLeaves, Emilie Ramach. There is a difference between 3rd party white labelers, and BeneLeaves has both heart and experience.

4. Design Strong Branding and Packaging

When designing your product packaging, create a retail box, jar, or tube that reflects your brand’s identity and stands out on the shelf. A couple of things to consider include:

Eco-friendly options: Sustainable packaging resonates with environmentally conscious consumers.
Compliance: Ensure labels meet local regulations, including warnings and dosage information.
Child-safe: Be sure your packaging meets your state’s child-proof regulations.

Marketing 101: Appearances matter. You can have the highest quality bud, terpene-packed oil, and perfectly baked edibles — but at the end of the day, you need that first impression (or word of mouth) for customers to try, experience, and appreciate your carefully crafted products.

5. Understand Legal Requirements

Cannabis regulations can be quite complicated at best. And to keep everyone on their toes, the laws and regulations often vary by state and product type. Working with a reputable white labeler can help to ensure your:

Packaging and labeling comply with state laws.
Trademarks and intellectual property are protected.
Distribution practices adhere to local guidelines.

Those are just the tip of the iceberg. OEMs don’t just save you time to market and don’t just save you money — they help you navigate and dodge much of the legalities and quality requirements that are very strict in the cannabis industry.

6. Plan Your Marketing and Sales Strategy

Launching a new product requires a well-coordinated marketing plan. We’ll dive into cannabis marketing in a future article; however, it’s important to remember some basic marketing rules of thumb:

Leverage Social Media: Leverage platforms like Instagram and X to showcase your new product line and branding. The cannabis community is highly educated, but they still appreciate a company that connects with its customer base and demonstrates its humanity and company values. Use social media to your advantage. Connect. Engage. Interact.
Collaborations: Partner with influencers or local businesses to boost visibility. We live in a very social world. Partner with like-minded businesses and influencers to create brand awareness.
In-Store Promotions: Offer discounts or bundle deals to encourage purchases. This can be useful when you are trying to liquidate expiring drinkables or taking advantage of holiday shoppers.

Cannabis can be a tricky product to market, especially while being listed as a Schedule I drug by the federal government. Even rescheduling under Schedule III won’t solve many of the regulated market’s retail woes.

Every step forward counts, and responsible, strategic, educational marketing can help nudge us to a future where cannabis is purposefully regulated and transitions from taboo to table talk.

Still Have Questions About White Labeling?

White labeling offers a powerful way for cannabis businesses to expand their product offerings while focusing on branding and customer engagement. By partnering with the right manufacturer and planning strategically, you can gain a competitive edge in this dynamic industry.

Looking to get started? Omegastore.com specializes in equipping cannabis businesses with the tools and partnerships needed for success. Contact us today to learn more about how we can help grow your business through white labeling.