MJBizMag November-December 2020 - 96

White Labeling
Inanna Manufacturing creates products
for cannabis companies to sell under
their own labels. Courtesy Photo
T
he complexity and cost of
obtaining cannabis licenses has
many brands turning to whitelabel
branding.
White labeling, a practice common
among mainstream businesses, is when a
product is produced by one company but
packaged and branded to make it appear
as if another company made it.
For example, many products sold at
Whole Foods Market under the
365 brand were not made by Whole
Foods at all. Instead, the national
grocery chain has various companies
that produce the items for Whole Foods
to sell under its 365 label.
The same is true for Costco's Kirkland
brand and Walmart's Great Value brand.
'AREAS OF EXPERTISE'
Daniel Yi, managing partner and
chief strategy officer of Bellflower,
California-based product maker Inanna
Manufacturing, said opportunities for
white-labeling in the cannabis space are
great because few companies are doing it.
Daniel Yi
Many entrepreneurs have ideas for
brands and would like to get into the
cannabis industry, but they are unable
to do so because they can't get a license,
according to Yi, who got his start in the
cannabis industry four years ago with
Los Angeles-based multistate operator
MedMen Enterprises.
" There are a lot of product ideas, " he
told Marijuana Business Magazine.
Inanna holds one of California's
Type 6 cannabis-manufacturing licenses,
96 Marijuana Business Magazine | November-December 2020
Obtaining licenses to operate a
cannabis company can be costly and
time consuming, so many brands
turn to white-label companies to
manufacture and package their
products. If you want to use a whitelabel
company to build your brand,
here are a few tips to ensure you get
the most out of the relationship with
your partners:
* Make sure the idea for your products
is fleshed out before enlisting help.
* Have packaging and branding
approved by authorities and ready
to go.
* Use multiple suppliers to ensure
you always have ample inventory.
* If you're manufacturing edibles,
consider using a white-label
company to extract the distillate for
your products.
* Vet the growers that work with your
white-label company to ensure you
are getting a quality product.

MJBizMag November-December 2020

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