The Hidden Shortcut to Launching a Cannabis Brand
When people imagine launching a cannabis brand, the pictures in their minds tend to be glamorous: sleek jars of flower displayed under glowing dispensary lights, a social media feed buzzing with lifestyle photos, maybe even a booth at a trade show with a line of eager fans. Few picture themselves in a manufacturing facility, watching products roll off the same line as their competitors.
But for many entrepreneurs, that’s exactly how the journey begins. White labeling—where a company manufactures products for another brand—has become one of the industry’s quietest, least glamorous, but most effective ways to get to market.
“It’s not the sexiest part of the business,” admitted one operator. “It happens behind the scenes. But if you want the lightest lift in starting a cannabis company, this is it.”
Behind the Curtain
To understand how white labeling works, picture a beverage bottling plant. On any given day, the same conveyor belts may churn out sodas, sports drinks, or sparkling waters—each with its own recipe, but all processed and packaged on the same equipment before being loaded onto trucks and shipped to stores.
Two Models, Two Mindsets
Marshall breaks the model down into two paths.
The first is co-packing: “I charge you a fee to make your product,” he said. “That could include manufacturing, distribution, even sales and collections. You’re essentially paying for services à la carte.”
The second is a royalty model: “We handle everything—production, sales, distribution, inventory, invoicing—and keep the revenue. In return, we pay you a royalty for using your brand.”
Marshall’s company currently uses the latter approach with Cheeba Chews and Escape Artists, overseeing nearly every aspect of the supply chain. The brands provide packaging, ingredients, and marketing support, while Marshall’s team takes the products to market.
A Faster On-Ramp
White labeling isn’t just about convenience—it’s also about speed.
When Corey Keller, the founder of Bonanza Cannabis, expanded from Colorado into New Mexico, the strategy shaved months off the timeline. “Once you’ve got the packaging and hardware squared away, you can be up and running almost immediately,” Keller said. “There’s no waiting on licensing or inspections because the partner is already compliant.”
What might have taken six to nine months under their own license took just a few using a white labeling company. Keller has since acquired his own licenses, but it just goes to show that even established brands see the benefits of white labeling.
The Hardest Part: Finding a Partner
For Nargis Hakimi, founder of NAR Cannabis, the toughest hurdle was choosing who to trust. Her relatively new brand has already landed on 70 shelves, but the path wasn’t smooth.
“It’s not easy at all,” Hakimi said. “You need thick skin and a lot of grit. Partners can eat away at your profits in the biggest way. If you don’t know your numbers—wholesale prices, retail margins, raw costs—people will take advantage.”
Why Distribution Matters Most
Marshall suggested seeking out cultivators with unused capacity—those looking to maximize yield. Marshall added that cultivators with excess capacity can be prime partners. He suggested that these companies will want to find a way to use up the pounds that aren’t committed to a specific customer. “I would probably advise people to go call all the big manufacturers and cultivators in a certain state and find out who the biggest ones are and then start calling them and saying, ‘What’s your appetite for bringing on a partner? Do you have access to capacity? Could you add an extra grow room?’”
What to do now while the rules catch up?
Tight books. Close the month on time. Track cash conversion, inventory turns, and gross margin by SKU.
Standard operating procedures. Clear, simple SOPs beat heroics. They also make lenders and buyers more comfortable.
Data and compliance on deck. COAs, traceability, safety records. Organized. Searchable. Shareable.
Quality and story. Keep your flower and hash honest, your brand human, your community close. When capital returns, real gets rewarded.