Starting an Edibles Business – Top Tips for Compliance Success

In our first edition of How to Start an Edibles Business, you learned all about the basic building blocks it takes to get started. But that was just the beginning. As you begin to move forward with starting an edibles business, you’ll soon realize that the complex world of DCC regulations (Department of Cannabis Control) is a whole other ballgame. 

Simply put, California cannabis compliance poses quite a learning curve for aspiring cannapreneurs who have little to no experience in the industry. Unfortunately, imposing even more barriers to the market for those without the resources to successfully navigate the lengthy list of state requirements. 

To help, here we’ll simplify the most important aspects of starting an edibles business legally and in compliance with California requirements specifically. So, keep reading for our second edition of our How to Start an Edibles Business series – all about California cannabis compliance.  

How to Start an Edibles Business – Compliance Edition 

Outside of learning how to formulate recipes and build a business plan, starting an edibles business also requires knowing how to legally operate. In cannabis, it’s not just everyday business regulations you’ll need to adhere to but also those of the DCC. To get you started, here are the five most important factors to consider when setting up your future business. 

#1 – Licensing 

In California, getting a license is the first step to starting an edibles business that is compliant. The state requires you to get a Type N, Type 6, or Type 7 manufacturing license if you want to make edibles in your own facility. However, California also offers a Type S license that allows you to manufacture edibles in a primary Type S licensed facility. 

What’s the difference? Type S licensing has a much faster approval process and costs far less, especially when accounting for start-up location costs. But licensing isn’t the only way to legally sell edibles in compliance with DCC regulations. You can also explore white-label and private label opportunities, where your business won’t require a license but the contract cannabis manufacturing partner you choose will. 

#2 – Location Matters 

Speaking of location, to be fully compliant, you’ll need to understand and follow not only DCC regulations but those of local jurisdictions, too. This will require finding out the local laws and regulations of the city you plan to set up shop in. 

In fact, it’s best to know this before you start scouting locations to make sure that the building you choose is properly zoned for cannabis manufacturing. This is another perk of starting an edibles business with a cannabis contract manufacturing partner or a Type S facility where the primary license holder will have already done so. 

#3 – Compliance SOPs 

From security to storage and everything in between, each step of the cannabis manufacturing process is highly regulated and monitored. One slip-up during an inspection or through monitoring, can put your business at risk for violations, potential fines, and even license suspension. That means you’ll need to include the requirements for California cannabis compliance in your working SOPs and stay in tune with any changes to make revisions when they arise. 

Because regulations change so frequently, this often requires the help of an in-house hire (e.g. compliance manager) devoted to the task, or the hiring of outside help—two costs to consider when starting an edibles business and deciding which route is best for you. 

#4 – METRC

METRC or Marijuana Enforcement Tracking Reporting and Compliance, is the universal system that’s used to track cannabis from seed to sale to prevent loss and uphold community safety. To do so, the system tracks everything from the base oils you use for infusion to the finished product, transport, and sales. 

When starting an edibles business, you’ll need to become well-versed in METRC or, again, partner with a contract cannabis manufacturing partner, or Type S facility, that is. 

#5 – Required testing 

Speaking of safety, it’s no surprise that there are just as many requirements for the testing of cannabis edibles to ensure they’re safe to consume. To hit store shelves, DCC regulations require that all cannabis products are tested for – 

  • Cannabinoids 
  • Residual solvents and processing chemicals
  • Residual pesticides
  • Heavy metals
  • Microbial impurities
  • Mycotoxins
  • Moisture content and water activity

The lab must also be ISO-accredited and follow the rules set by California’s cannabis compliance requirements. To further ensure compliance, both you and the lab you choose should be well-versed in how to collect samples from batches for testing to avoid any issues that could raise red flags with regulators. 

#6 – Packaging and labeling 

While we touched upon the basics in our first edition of the How to Start an Edibles Business series, we didn’t get into the full scope of requirements for the actual content. In addition to what you learned about the type of packaging to be used (child-resistant, resealable, etc.), you’ll also need to get a process down for what you need to include on the label. That includes over 20 different subjects like ingredients, net weight, and usage warnings, in addition to requirements like font point size and weight. 

Rather than listing each one individually here, we’ve created a comprehensive guide for tracking edibles’ packaging and labeling requirements in an all-in-one checklist.

Maintaining California Cannabis Compliance – Final Tips

If there’s one last tip we can leave you with for starting an edibles business that maintains compliance, it’s this: plan to regularly audit your internal processes for the utmost success. Or, seriously consider partnering with a third-party manufacturer to ensure that success. Even though starting an edibles business can result in profitable results, doing so without risk management and as cost-effectively as possible can make success that much more difficult to achieve. 

My Green Network was established to support aspiring cannapreneurs with a more seamless and successful market entry into the ever-expanding cannabis industry. So, continue learning how to start an edibles business in California by becoming more familiar with our Type-S shared-use facility or our white label and private label opportunities.

Visit the MyGN website to schedule a tour or check out our Green Leaders, who have found their own success through edibles, pre-rolls, and a variety of manufactured cannabis goods.

 

What’s Right For You? Private Label Cannabis vs White Label: The Top Benefits

Across the retail and product industries, white-label and private-label goods are common practices. In other words, one manufacturer creates a commodity (think food, toiletries, etc.), and a variety of brands label it as their own. 

So, if you’ve ever come across an “off-brand” item that you think tastes or works just the same as the original, it’s likely you’re right. As the cannabis industry matures, so do the practices it borrows from other successful markets, including the use of private label and white label manufacturing, as we just described. 

White label cannabis and private label cannabis manufacturing are now on the rise in the most mature cannabis industries, including California. Why? Because it not only offers consumers consistent, quality products but also allows current licensees to expand their product portfolios, non-cannabis brands to capitalize on market growth, and aspiring cannapreneurs to get their start that much more seamlessly. 

If you fall into any of these categories or have an out-of-state or out-of-country cannabis brand you’d like to expand, white label and private label opportunities are ideal for entry into the California market. So, which is right for you? Keep reading to learn more about white label cannabis and private label cannabis manufacturing and the benefits of both.

What is white label cannabis? 

White label cannabis manufacturing is exactly the practice we described in our introduction. For cannabis, it means one licensed manufacturer manufactures a portfolio of cannabis product types that can be individually branded. The most unique part of cannabis white labeling is that the brand does not own a cannabis license. 

The main disadvantage of white label cannabis is that you’ll have no control over the formulation or production of the product. However, for some entrepreneurs, this could also be an advantage. Especially when you’ve tested the white-label product, know its quality, and can take the stress and efforts of product manufacturing off your plate. 

In fact, even current manufacturers and licensees are seeking out white label producers to manufacture new product lines that align with their quality standards because they don’t necessarily have the expertise or experience in manufacturing themselves. For example, cultivators white-labeling vape carts, or concentrate brands white-labeling edibles. 

Another disadvantage associated with certain white-label cannabis manufacturers is a limit on product types. i.e., some might specialize in white-label cannabis edibles but can’t produce vape carts, concentrates, or pre-rolls. So, if you want to keep growing your brand, it’s best to find a white-label cannabis manufacturer like My Green Network that can offer a wide range of products. 

What is private label cannabis? 

 
Now let’s talk about private label cannabis. Unlike white labeling, private labeling allows brands to take part in the formulation of their products. This means the product they produce is unique to their brand. Unlike white label products, where the only thing that differs is the branding and not the formula. 
 
Taking this route gives you just as many options, like private-label edibles, concentrates, vape carts, topicals, pre-rolls, etc. It just gives you the advantage of having more control over the end-product. Similar to white labeling, a benefit of private labeling is starting with a quality base formula that’s already established in terms of ingredients, recipes, and manufacturing processes. This helps reduce the time and money spent on these necessary steps for launching new products.
 
Last but certainly not least, private label cannabis manufacturing gives brands a way to stand out from the competition on the shelves by adding their own unique twist to common goods.  
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Benefits of Private Label Cannabis and White Label Cannabis

Unlike food or toiletries, recreational cannabis goods aren’t a necessity, they’re a luxury for most. Even more, the consumer community is high on culture and connection and more closely connected to brands and experiences than most. Finally, we’d be remiss without mentioning – there are a plethora of options for each product category, making brand loyalty that much more crucial.  

So, to make it in the industry, the branding and quality of your product have to be on point. After one bad experience, that customer likely won’t be back, and without proper brand awareness and messaging, how will they even know to choose your brand over others? 

This is where the major benefits of white-label cannabis and private-label cannabis come into play. 

  1. White label or private label opportunities give entrepreneurs the time and costs saved to devote towards launching their brand successfully versus focusing on the manufacturing of the product. 
  2. Choosing a reputable private label and white label cannabis manufacturer allows you to put a quality product on the shelf, from the start. Helping brands avoid the inevitable bumps in the road that come with entering a new market for the first time, therefore increasing brand loyalty. 
  3. Speaking of reputable white label and private label cannabis manufacturers, another major benefit they can provide specifically is a direct route to retail or delivery services. Further supporting a new brand’s ability to get onto shelves, and in front of consumers for purchase. 
  4. As for existing cannabis brands or non-cannabis brands, these reputable manufacturers also give entrepreneurs the ability to maintain their level of quality or standards across various products. For example, a high-end candy company can replicate their luxury status with an equally high-end edible. Or, cultivators can equally match their top-shelf flower, with a top-shelf solventless vape cart. 

MyGN: The Premier White Label and Private Label Manufacturer

As you can imagine, in every industry, there are bound to be differences from one white-label cannabis manufacturer to the next. There are those who prioritize quantity over quality, and there are those who don’t. There are those with the equipment, facility, and capacity to keep up with supply and demand, and there are those who don’t. 

So, in addition to learning which might be right for you white label cannabis or private label cannabis—you’ve also learned the importance of choosing the right manufacturer for the complex industry. 

But don’t stop here! Continue your exploration of white-label or private-label opportunities. Schedule a tour of the My Green Network facility in Orange County or learn more from anywhere with a discovery call today. 

 

White Label Cannabis Products – The Top 6 Ways to Spot A Quality Partner

Launching a new cannabis product is no joke in today’s industry. But there’s no reason to be afraid of the competition. Even though there’s a growing number of cannabis brands in California, there’s an equally growing amount of consumers (tourists and visitors included!). 

As consumer demand continues to rise in the Golden State, so will the demand for high-quality brands that offer more than just a top-shelf product but a brand they can connect to. With the right cannabis white label California partner, this could be you. 

If you’re considering a career switch, a life shift, or searching for ways to ignite your entrepreneurial fire, white label cannabis products could be your way to change. So keep reading to learn more about how to navigate the complex market and launch your white label cannabis brand the most successfully

 

White Label Cannabis California Partners: 6 Must-Haves

To ensure your launch isn’t a flop or a costly mistake, here are the top six things to look for when selecting a cannabis white-label California manufacturer. 

#1 – Capacity 

One thing that can quickly lose white-label pre-roll or white-label cannabis edible customers is not having a consistent stock. As soon as your white label cannabis product is out, they’ll just buy another and might not ever come back for that return purchase. In an industry with so many options, brand loyalty is important, so make sure your white-label cannabis California partner can keep up with your sales plans and schedule. 

#2 – Capabilities 

Along with capacity, there are capabilities that will differ from one THC white label manufacturer to another. For instance, do they offer solventless products, an increasing category in sales? Do they offer a wide range of white-label cannabis products to allow your brand to scale and diversify over time? Do they have state-of-the-art equipment that efficiently produces consistent quality and dosage? 

#3 – Support 

One of the biggest benefits of partnering with a contract manufacturer to produce popular goods like white-label pre-rolls or white-label cannabis edibles is the time you’ll get back as a business owner to plan and strategize your product’s launch. The time that’s going to be necessary in the somewhat cutthroat industry of purchasing and sales among California retailers and delivery services. 

That means one thing to look for in a potential cannabis white label California partner is additional support for sales and branding. Even though you will still have to put in effort to launch your brand, simply having it on any shelves will get you started and give you credibility to sell others. Other benefits would include help with labeling or packaging to make sure your brand follows all of the state’s complex regulations. 

#4 – Expertise 

Expertise doesn’t just come in the form of capabilities or industry connections, it also comes with the caliber of the facility and staff. Technically, anyone can set up shop with a few pieces of equipment and manufacture white label cannabis products. But you don’t want just any product to go to sale in this market. You’ll want the best product possible to grow a returning customer base. 

So, learn everything you can about your potential cannabis white-label California partner’s legal manufacturing experience, from prior professional experience to equipment types or even SOPs for regularly maintaining critical equipment for production. 

#5 – Compliance 

Cannabis is a highly regulated market, which means your new white-label cannabis brand can’t afford to make any mistakes with fines reaching up to $128 million. So, you’ll want your THC white label manufacturer to know about more than just packaging and labeling rules. They should also know about all the requirements the product must meet as it goes through METRC. 

METRC, which stands for Marijuana Enforcement Tracking Reporting and Compliance System, is in charge of tracking and tracing efforts of products throughout their journey in the market. Any problem along the way with storage, waste, etc., can cause production delays, which can hurt your brand’s ability to keep loyal customers coming back. 

#6 -Experience 

Everyone can talk the talk, but can your white-label cannabis California partner walk the walk? Before you sign any contracts or move forward with a THC white label manufacturer, be sure you ask to see their work or speak with other brands they’ve produced for. 

white label cannabis products

The Bottom Line: White Label Cannabis Products

All in all, white-label cannabis products are a simple and seamless route into the California cannabis market when done correctly. The last thing any new cannapreneur wants is to enter with a less-than-quality product and not just be back to square one, but with a tarnished reputation to go along with it. 

So, as recession and layoff concerns rise, if you’re all in on becoming the next best thing in the cannabis industry, consider My Green Network as your trusted cannabis white-label California manufacturer. We helped launch over 20 brands in one year, as well as supply private label and white label manufacturing services to some of the biggest brand names for product diversification purposes.  

Go on and bring this checklist to a tour of our facility, and we’ll show you how we check off all of the boxes as the premier cannabis white-label California producer. Learn more and send us a message to schedule now.