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Month October 2020

Successful CBD Business
October 22, 2020 1 Comment  

Successful CBD Business: Your definitive guide

The natural potential of CBD (cannabidiol) is no longer a secret. More and more people are learning how CBD could improve their wellbeing and quality of life, and an ever-increasing number of businesses are discovering how they could utilise this natural resource. This boom in the CBD market has been so colossal that leading cannabis researchers BDS Analytics predicted that the US market alone could reach $20 billion in sales by 2024. This study took place in 2019, prior to the Covid-19 which Forbes noted provoked a soar in demand for CBD products. In short, CBD is here to stay – so are you getting on board?

Here’s your definitive guide to starting a successful CBD business, whether it’s wholesale, white label, or private label.

Knowing your CBD

Cannabidiol is a phytocannabinoid and is extracted from the hemp plant, which is part of the cannabis family – but CBD is not the only phytocannabinoid, which can lead to crucial differences in your CBD extract. In fact, there are more than 100 phytocannabinoids found in hemp and cannabis plants. The two most powerful of these are CBD and THC (tetrahydrocannabinol) which you may know as being responsible for the psychoactive effects of cannabis. CBD-based products do not have mind-altering effects, the levels of THC in hemp is significantly lower, and in most countries, the levels must be kept below 0.2% to be legal.

However, although CBD is the crucial phytocannabinoid, you may not necessarily want to extract it on its own. It is possible to obtain an extract which is only CBD, but studies have shown that when the phytocannabinoids (as well as terpenes and flavonoids) are kept together in the extract as they present naturally in the plant – they synergise and the overall effect is more impactful. Full-spectrum extracts contain all the natural elements which are found in the hemp plant, meanwhile broad-spectrum has 0% THC but contains everything else.

In general, full-spectrum CBD extract is the most favourable choice. But depending on your business and product line, your chosen CBD manufacturer will be able to advise you best.

What kind of CBD business is best for you?

CBD Wholesale

If your business is set up, you’re raring to go, and the only thing you need to do is find the right CBD products to add to your shelves, then wholesale CBD could be the best option for you. By partnering with a wholesale service, you will know exactly what the finished product is and how it performs before you go to market. It also means that you can ride on the wave of the label’s establishment in the CBD market, which is incredibly beneficial as breaking into a booming industry comes with all kinds of challenges.

CBD White Label

White label products allow you to create your own, branded line of products, with the guarantee of high-quality CBD. Setting up your own CBD operation, from start to finish including cultivation and extraction, is a costly and time-consuming endeavor. Of course, you don’t want to cut corners, and you want your customers to have access to the very best CBD. Consequently, pairing with a trusted white label CBD manufacturer will allow you to use their extract and formulated products with your own label. Entering the market as a newly established brand allows you to set your own price points and choose your competitors.

CBD Private Label

White label and private label are often confused, but there is a crucial difference between them, and this could make all the difference to your CBD business. Private label allows you to collaborate with the CBD manufacturer during the formulation process, meaning your CBD product will be completely unique and a creation of your company, while benefiting from the knowledge, expertise, and resources of the experienced CBD manufacturer. 

When choosing a CBD manufacturer and identifying the right kind of partnership it is important to take your ideal product range into consideration. Today, CBD comes in all shapes and sizes – starting with the original CBD oil, this has expanded into vapes, capsules, sprays, topicals, and skincare products amongst others. Depending on your brand identity and target demographic, your choice of product may differ. This will help you identify which manufacturer is best for your CBD business, and also help to decide whether white label or wholesale is the wisest choice, or if you would prefer to help formulate a new product.

While an excellent product is at the core of a successful CBD business, there are other factors that play a key role in the elevation of a company. The CBD industry is booming, but still largely unregulated, which has given way to a large number of loopholes and low quality companies. Partnering with the right manufacturer will help to avoid being caught up in the wrong end of the market, and there are certain ways to identify who can help you. Look for a company that is transparent, in both their production and the quality of their products which can be understood via independent third party lab testing (provided by all high grade companies). Another way of understanding your manufacturer is by reviewing the products that they already have on the market and how they perform.

CBD Manufacturer
October 6, 2020 No Comments  

5 Tips to Help You Choose The Right CBD Manufacturer

So, you’re thinking about launching a CBD business or a CBD product range within your established business, and this is a great moment to do it. People across the world are becoming more and more conscientious about their health and wellness, and in the past few years, the cannabidiol (CBD) industry has developed in leaps and bounds thanks to pioneering research and manufacturers. Today, CBD is used for a wide variety of conditions and ailments, from sports recovery and improved wellness to reduced anxiety and pain management. There is barely a demographic out there who can not benefit in one way or another from the natural therapeutic properties of plant-based CBD products. Helping people be happier and healthier thanks to the effects of a natural plant-based product is a project which you should be immensely proud of, but there may still be pitfalls and growing pains.

Whether you’re looking to go to market with wholesale products, white label, or private label – the first thing you need to do is find the right manufacturer. But this is easier said than done; due to the largely unregulated nature of the CBD market, there is an abundance of low quality products made by unreputable manufacturers.

Finding the right manufacturer is one of the primary concerns for new CBD businesses. The right manufacturer will make your CBD journey easy, efficient, and beneficial – so we’ve compiled our top five tips to help you find the right CBD manufacturer. 

Top five tips to help you find the right CBD manufacturer

CULTIVATION

Good CBD needs to be the best from the beginning, and this means using the best strain of cannabis and cultivating it in the optimal environment.

Companies such as Reakiro recognise the importance of prioritising the process of cultivation, this is reflected in the time Reakiro took to research the best strains of hemp for CBD extraction and find the most arable fields in Europe to grow it. By having control and overview of the cultivation process, a manufacturer can offer consistency and full transparency about their operation from seed to shelf. With seed to sale transparency, you can also track the potency of CBD extract and determine the presence of certain phytocannabinoids and terpenes. Additionally, depending on where the hemp plants are grown, as a business partner, you will want to verify what certifications the manufacturer has and which regulations they comply with – which can vary from country to country. Reakiro’s hemp is all grown in compliance with the European Union’s regulations.

PRODUCTION AND EXTRACTION

When picking a CBD manufacturer, do your research to learn about their extraction process and the transparency of the methods used.

The most complex and expensive part of manufacturing CBD-based products is the extraction process, which is why when you’re getting started in the CBD industry it’s best to pair with a trusted manufacturer who can show you the ropes without incurring the cost of setup and the learning process. However, due to the recent boom in the market, many low-grade operators have seen this moment as a good opportunity to quickly cash in. Consequently, the quality of their product is not of premium grade as they have no intention of making a name in the industry, rather their interests lie in turning over the largest profit in the shortest amount of time. When picking a CBD manufacturer, do your research to learn about their extraction process and the transparency of the methods used. If you have any questions someone from the company should walk you through their methods in detail.

THIRD PARTY LAB TESTING

All legitimate CBD manufacturers should obtain and openly supply third party independent laboratory testing certificates.

Throughout this guide to help you find the right CBD manufacturer, we have mentioned the need to make sure the product you’re dealing with is high quality and also consistent. And maybe you are wondering just how you can verify these things before jumping into a partnership. All legitimate CBD manufacturers should obtain and openly supply third party independent laboratory testing certificates which show the dosage and potency of the CBD extract, consistency between batches, suitability for vegans, while also checking for the presence of heavy metals, pesticides, and other contaminants. These documents are called COAs (Certificates of Analysis). Another aspect to verify is whether your manufacturer is GMP (Good Manufacturing Practices) certified, a certification awarded by the FDA (Food and Drug Administration) for the highest manufacturing practices.

EXISTING CUSTOMER REVIEWS

From a less technical standpoint, you will also want to know how the chosen manufacturer’s product performs from the customer’s experience. Reading what people candidly think about CBD products from your chosen manufacturer will be the closest prediction of how your products (wholesale, white label, or private label) will perform when they go to market. Check out review sites such as Trusted Shops where customers can only leave a review after confirmation of buying a product or head to social media so find out how people are reacting.

GOING THE EXTRA MILE

While you may think you are only looking for a CBD manufacturer to supply you with the core product, launching a CBD business can be quite a complex process so having a partner to guide you through the aspects is invaluable. Perhaps you will seek advice regarding the regulations from country to country, branding and design consultancy, or launch strategy. Pairing with a CBD manufacturer who is prepared to go that extra mile and give a helping hand to a new business in the CBD industry will give you a head start thanks to their own experience and expertise. Excellent customer service is one of the pillars of an excellent business, so understanding how your potential manufacturer interacts with you is a reflection of how they run their operation.

Whichever direction you hope to take your CBD business in, hopefully, this guide will help you find the right manufacturer. Be patient when doing your research and talk to members of the team and get to know them, to learn and understand more about how the company works and the industry operates. Making rushed decisions will not serve well for the future of the business, especially given the ever-evolving and largely unregulated nature of the CBD industry. Nevertheless, finding the correct CBD manufacturer to guide you through your wholesale, white label, or private label venture will make for an exciting and informative journey.

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