Used as a means to expand SKU lines as well as revenue, white labeling in the cannabis industry offers businesses unparalleled advantage and impressive profit potential.
The evolution of the cannabis industry in recent years continues to exceed market expectations. While many attribute this unprecedented growth and positive trend to the emphasis on business-to-consumer models, some cannabis companies are having significant success in leveraging white labeling partnerships to tap a rapidly emerging market that thrives on innovative business models and unique products for a growing consumer base
As the popularity of white label services among cannabis companies increases, especially in the production of rapidly growing categories of value-added products like extracts, oils, edibles and vapes, companies that are becoming Co-manufacturing experts and have the ability to provide these services are establishing themselves as industry leaders. Used as a means of extend SKU lines In addition to revenue, white labeling in the cannabis industry offers companies unparalleled advantage and impressive profit potential.
How do white label services work?
White labeling is a business practice that involves a company making a product, which is then sold and advertised under the brand name of another company. These solutions are usually done in exchange for a lump sum or a percentage of product sales depending on the terms of the agreement.
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This business-to-business solution allows a partner company to attach its unique brand to a “white label” product for marketing and sale to the end consumer and allows the “white label” manufacturer to potentially partner with different companies. Without the need to invest in infrastructure or technology. Cannabis companies can focus on building their brand and selling a wider range of products to a large network of potential customers.
Moreover, many also associate these white label solutions with toll processing, a practice in which one company supplies the raw or partially processed product for another company to transform into a value-added product.
Access to extraction and packaging services via white label providers
White label services provide an ideal solution for businesses that may not have the start-up capital to build a manufacturing plant, obtain a product license, or have difficulty starting a cannabis business. Under these circumstances, partnering with a licensed processor who has established production and focused efforts on creating a diverse range of high-quality cannabis products presents exceptional economic opportunities.
Ayurcann Holdings (CSE: AYUR), a B2B post-harvest solutions provider focused on delivering scalable custom processes and pharmaceutical grade products to the recreational and medical cannabis industry in Canada, is a case in point. The company offers a profitable business model of services and products. It operates three production divisions specializing in expert cannabis extraction and refining, the sale of high quality bulk oil and white label manufacturing.
White labeling options for cannabis companies
In an industry that is shifting its focus away from culture, more fully integrated companies offering multiple verticals in cannabis processing and production offer an unprecedented investment opportunity that sets itself apart from the rest. The major players in the white label cannabis industry offer a unique exposure and retail base that allows many companies to compete with established brands and quickly impact consumers.
Ayuracann Production offers comprehensive end-to-end outsourcing services, including proprietary product research and development, cannabis extraction and refinement, and final production formulation and execution. As a leading provider of white label services, the company strives to become the partner of choice for leading Canadian cannabis brands by providing top notch exclusive services including ethanol extraction, formulation, development of products and custom manufacturing.
Benefits of white labeling for cannabis companies
Data Collected By Grand View Research Predicts The Legal Global Cannabis Market Is Worth It US $ 66.3 billion by 2025. While much of the cannabis product sold today is still the raw product, value-added packaged consumer goods are gains traction quickly across the cannabis industry.
White label services allow cannabis companies to capitalize on the latest and greatest trends in cannabis consumption by expanding their portfolios to include high demand products such as oil cartridges, extracts, topicals, CBD bath products and lotions, edibles and more. Without having to invest in the infrastructure, processing labs, and manufacturing facilities needed to make these products, businesses can focus on delivering more products to enthusiastic customers. With an ever-changing cannabis market, white label partnerships can give cannabis companies an edge over the competition.
While vertical integration can be a very effective strategy for large cannabis companies with the initial capital to build the necessary infrastructure, companies without the resources to establish it take a huge risk by investing in them. operational and initial costs. This includes time, construction and equipment costs, licensing processing, and finding specialized personnel to develop and support the business.
Alternatively, outsourcing manufacturing allows a cannabis company to expand its product offering, use quality formulations, and establish its brand while reducing the financial risk associated with vertical integration. Finding a compatible white label partnership means more time to build a brand and reach retailers and end consumers much faster. For cannabis companies that want to get started, the white label offers the tools, expertise and systems in place to make it happen.
To take with
Cannabis companies are using white label services to expand and diversify their product lines and tap a market that increasingly favors consumer packaged value-added products. For cannabis companies without fully vertically integrated operations, white label partnerships with major players like Ayurcann Holdings offer exceptional economic efficiency and upward investment with minimized risks and infrastructure costs.
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