Month: December 2022

Common FAQs about Cannabis White Label California Edition

As the largest cannabis industry in the US, it’s no surprise that California is booming in consumer sales and business. If you’re interested in getting your brand on the shelves of California dispensaries and taking a share of these sales, check out these FAQs about white-label weed products as a first step.

Can you white-label cannabis? 

Yes. Just like in the grocery, health, and beauty spaces, white label cannabis manufacturers exist to produce white label weed products that can be branded by others. That means gummies, pre-rolls, concentrates, oils, and more, may be manufactured by one producer and labeled as a variety of brands. 

What does “white-label” cannabis mean? 

By definition, white label cannabis refers to a product that’s made by a manufacturer that multiple brands can brand as their own. White-label weed products give brands the opportunity to forego the costs of licensing, setting up facilities, and manufacturing a product, which can exceed a million dollars for some. Not to mention, this process often takes over a year instead of less than a year with the cannabis white label route. 

Is white-labeling legal? 

Yes. As long as the manufacturer that is producing the white label weed products is licensed to do so, white-labeling cannabis is legal in California. Of course, exact laws and regulations do vary by state, so be sure to research all of the production and sale regulations before moving forward with cannabis white labeling in other regions. 

What is the difference between a white label and a private label? 

In conversations about cannabis white labeling, you’ll also come across the term “private label.” Private label opportunities, cannabis-wise, allow a brand to partner with a THC white label manufacturer to produce its own unique product. For instance, if you brand cannabis white label gummies with a manufacturer, you’ll only be able to choose from their catalog of white label weed gummies. 

In comparison, if you decide to private label a product, you’ll have a say in its formulation, flavors, appearance, etc. This gives brands the opportunity to differ from competitors or put their own individual twist on a popular consumption method. 

Is white labeling profitable? 

Yes. In fact, because white labeling has lower start-up costs, it can be more profitable and faster than traditional licensing methods. Even more, this frees up time and capital to allow brands to focus on the launch and marketing of their products. It also helps to partner with a THC white-label manufacturer that has retail sales connections or support to increase early profits.

Do brands matter in cannabis? 

If you’re considering cannabis white labeling, you might also be wondering: Do brands really matter in cannabis or to cannabis consumers? The short answer is yes. With so many options for similar consumption methods (think pre-rolls, gummies, chocolates, etc.), it pays for brands to stand out from the crowd. 

As we just said, your team can do more to build your brand and plan for its launch and long-term success by taking advantage of cannabis white label opportunities. 

What are the benefits of white labeling? 

Outside of getting on the shelves faster, and having more time and money to establish your brand, there are other benefits of cannabis white labeling to considering, including – 

• THC white label manufacturers reduce the stress, time, and costs associated with maintaining equipment and running operations.  
• THC white label manufacturers control and maintain compliance, which is highly complex for cannabis products specifically. 
• THC white label manufacturers can supply you access to high-quality material, equipment and expertise, that might otherwise cost a pretty penny to get your hands on as a startup brand. 

White-label vs. licensing: what’s the difference? 

The biggest difference between white label vs. licensing is an obvious one. There’s no license for one, and there’s a long, intensive application process for the other. Traditional licensing for infused products in California, and other states, typically includes a long list of requirements like past financials, business plans, facility drawings, etc. Not to mention, licensing won’t just require an initial application fee, but once an application is approved, additional licensing fees which range from $1,000 – $75,000 alone for manufacturing licenses. 

Who is in Charge of California Cannabis Control?

The first question to answer on California cannabis compliance is: who’s in charge of enforcing regulations? The state’s Department of Cannabis Control (DCC) is charged with overseeing the cannabis market through “routine inspections and investigations.” 

When a facility is found to be non-compliant, the California cannabis regulatory agency’s staff first informs the licensee of the issue and provides instructions on how to fix it. Sometimes, they’ll issue a “Notice to Comply,” which outlines the specific violations found and provides a deadline for the issue’s correction. 

However, for more serious violations or repeated issues, compliance issues can become detrimental fast and subject to the following consequences – 

• Monetary fines – up to $5,000 per violation for licensees or $30,000 per violation of unlicensed persons.
• Order of abatement
• Embargo, a.k.a “preventing cannabis and cannabis product from being moved”
• License suspension
• License revocation
• Additional fines based on disciplinary guidelines

Now, to avoid fines that can reach up to $128 million for notable brands like Kushy Punch, it helps to take California cannabis regulation seriously from the start. So, next, let’s review the top ways cannapreneurs can ace compliance when learning how to start a cannabis business in California.

How to Start a Cannabis Business in California: Top 3 Ways to Stay Compliant

Mitigating risks is a large part of the entrepreneur’s process when starting a new business. For cannabis, that means learning as much as possible about California cannabis compliance before a mistake is made and it’s too late to recover. So without further ado, here are some of the top ways to ensure your cannabis business stays compliant: 

1. Include compliance in your business plan & SOPS 

What’s the best way to avoid a problem? Properly plan your operation to function with California cannabis regulations in mind. No matter what type of license you receive, every step of the cannabis production process is monitored and highly regulated through the METRC system. METRC stands for Marijuana Enforcement Tracking and Compliance, and one mistake can raise red flags. 

You will want to make sure that your business’s initial plans and standard operating procedures (SOPs) spell out your compliance and METRC procedures from start to finish. For instance, California cannabis packaging requirements are highly complex. Even down to the size of the CA compliant cannabis logo, which must be at least ½ inch by ½ inch in size. At the end of production, if you purchase labels or packaging that aren’t compliant, you could be stuck with reprinting costs, product recalls, and delayed sales, affecting your bottom line. 

2. Regularly audit 

Like taking a practice test, running your own internal audits are the best way to make sure that your facility is in compliance. These too can be outlined regularly within your operation’s SOPs, and you should also appoint a position or point person for compliance who is responsible for executing them. It can also be beneficial to bring in an outside third-party to review your processes in order to gain their expertise and ensure there are no blind spots or biases when it comes to meeting regulations. 

On the same note, there should also be processes put in place to keep up with ever-evolving and ever-changing regulations. The California cannabis regulatory agency often makes changes to guidelines and requirements, and being in tune with these changes is crucial for ensuring you don’t make a mistake. 

3. Hire an expert 

In addition to hiring a professional for internal auditing, it can be helpful to hire an in-house chief compliance officer or think about other ways to get into the California cannabis market that already have compliance figured out. Partnering with an already established infused product manufacturer or cannabis white labeling and private labeling are also becoming popular ways for new brands to enter the market with less risk, reduced costs, and advanced compliance processes. 

All in all, it’s not just California cannabis regulations that you’ll have to adhere to; there will be local and federal requirements like OSHA that you’ll have to plan for too. When you account for all of the moving parts and the cost it might take to monitor and stay on top of them, outsourcing production or partnering with an experienced contract manufacturer can often offer a higher ROI. 

What is a Canna Kitchen? 

In general, a “canna kitchen” refers to a kitchen where THC edibles are made or sometimes refers to an establishment where they can be consumed. For the purpose of this guide, we’ll be discussing the term in reference to edible manufacturing since that’s the definition that’s rising in use and popularity the most. 

Shared cannabis kitchens are similar to commercial kitchen spaces that caterers or small-batch producers would rent for the culinary and food industries. Of course, with cannabis, you’ll need a special license to do so, which in California is the Type-S license. This allows a Type-S licensee to make their cannabis-infused product in the facility of a primary Type-S licensee. 

These canna kitchens will vary from location to location, but for the most part, they are equipped with all the cannabis kitchen equipment you need to get started making a variety of edibles. Including – 

• Gummies
• Chocolates
• Baked goods
• Candies
• and beyond

All in all, cannabis kitchens are ideal for budding entrepreneurs who just need the space and guidance to get their start in the budding cannabis industry. So, now that you know more about what a canna kitchen is, let’s learn more about how to get started on building your own cannabis cooking company. 

How to Start a Cannabis Cooking Company

To start your own cannabis cooking company that produces THC-infused edibles, you should first start with a detailed business plan. The business plan should include

• Executive summary
• Company description
• Market analysis
• Organization and management
• Product line
• Marketing and sales
• Financial projections

Many business plans will also include a request for funding. For cannabis, most entrepreneurs have to get a bit creative with restrictions on federal funding due to the current Schedule 1 classification of the plant. Canna kitchens, fortunately, allow entrepreneurs to enter the market at a much lower cost than traditional licensing and production startups.

When you work with a well-established commercial cannabis kitchen for rent, you also get a partner with experience who can help you navigate the complicated world of legal cannabis. For example, My Green Network has a streamlined process for METRC track and trace (which is required by the state), compliant packaging and labeling, and even connections for seamless retail or delivery sales.

That means taking your time to vet canna kitchens is also highly recommended. So, last but not least, let’s review what to look for when choosing a canna kitchen to begin your journey as an infused product manufacturer on the right foot.

Finding a Reputable Cannabis Kitchen Near Me

Like most things in cannabis, not every canna kitchen can be treated the same. Each will vary depending on their own capabilities, prior success, cannabis kitchen equipment, and other factors that will affect the quality, compliance, and sales of your end product.

So, next, let’s cover the most important things to look for when selecting a commercial cannabis kitchen for rent to use for your edible manufacturing.

1. Experience – Because the cannabis industry is highly regulated, it’s recommended to select a canna kitchen that’s well-versed in the regulatory agency’s requirements. Even the most minor infractions can turn into major consequences, like license suspension, revocation or hefty fines. You’ll also want to explore or inquire, on a canna kitchen or shared facility’s ability to source material, like solventless rosin that’s quickly rising in consumer demand.
2. Equipment – For infused product manufacturers, not just any kitchen will do. It pays to be sure the canna kitchen you select has state-of-the-art equipment to help craft the highest quality edibles possible, consistently without mechanical errors or issues. As an example, not every facility will have a sugar tumbler, or a Baker Perkins depositor, one of the most advanced gummy manufacturing machines available on the market today.
3. Sales – So, you have your edibles produced… now what? Some canna kitchens and Type-S shared facilities will offer retail placement support, which is incredibly beneficial for newcomers to the scene that often struggle with breaking into cannabis storefronts. Some will also offer introductions to other cannabis companies in need of white-label and private-label services.

All in all, commercial cannabis kitchens for rent are fairly new to the scene, so trust and credibility should remain high on your list of priorities when selecting which to use for your cannabis cooking company.

Benefits of Cannabis Contract Manufacturers for Cultivators

When partnering with an established, infused product manufacturer, cultivators gain unique advantages for increasing profits and expanding their customer base seamlessly. 

The top being – 

1. The ability to turn your trim, smalls, kief, and leftover material, into profitable solventless edibles, high terpene extract (HTE) oil, infused pre-rolls, capsules, and beyond. 
2. Access to state-of-the-art equipment that you might have to cheap out on otherwise. 
3. Connection to a network of retail and delivery partners, you might not yet have tapped into. 
4. Reduced stress and wasted money on costly mistakes by streamlining METRC, compliance, packaging, and labeling. 

Cannabis contract manufacturers are not only benefiting in-state brands and cultivators but also out-of-state producers too. In fact, it’s one way some brands are able to scale so quickly from state to state. As brands continue to do so, this should only create more of a sense of urgency for California brands seeking to increase their market share. 

So, before we go, let’s review white-label cannabis and contract manufacturing to get a full understanding of how they work and how you can get started.

White Label Cannabis & Contract Manufacturing 101 

Last but not least, below is a breakdown of the basics of white-label cannabis production and cannabis contract manufacturing. 

Cannabis White Label 

White-labeling is not uncommon in the retail space. Across the industry, everyday products like shampoo, dish soap, and even food are white-labeled. That means one manufacturer produces the product with a “white label” for brands to then brand it as their own. In California, cultivators can partner with white-label cannabis producers to put their brand on products the producers already manufacture. Compared to contract manufacturing services, this does limit the range of products cultivators can choose from. 

Of course, if your brand has an idea in mind for its own unique product or good, contract manufacturing services would be the ideal route to take. 

Cannabis Contract Manufacturer 

In 2018, California’s Department of Cannabis Control created the Type-S Cannabis Manufacturing License, which allowed the creation of cannabis shared kitchens and co-manufacturing spaces. As a Type-S licensee, you can make your own unique product for sale in the facilities of a primary Type-S license. 

The Type-S license is far more cost-effective than traditional licensing and has a faster approval time. It also lets companies make private-label edibles, pre-rolls, and if they have the right equipment and expertise, a wide range of other cannabis products.