How do I vet a private label manufacturer?

Whether its CBD tincture drops, bath-bombs, skincare or hemp pet treats, CBD is everywhere. This makes it an exceptionally large market with lots of competition. Even large retail brands are carrying CBD, which are usually sourced from a white label or private label CBD manufacturer like 5Day Private Label. According to recent research, the global market for CBD moisturizers and skin care is estimated to be about $600 million dollars in 2020 and expected to grow to almost 2 billion dollars by 2025. This means there is a fantastic opportunity for a private label CBD brand to carve out a nice portion of the market and make money.

So, what is important with regards to choosing a CBD manufacturer?

Well for starters, when choosing a private label CBD manufacturer, make sure they are an actual manufacturer. It’s well known that most of the CBD “manufacturers” are just brokers with a story. Make sure they will flip on the camera and give you a tour of the facility. If they can’t do this, you should be cautious. Any good manufacturer will have a GMP certificate. This is a must! Everyone and their brother jumped into the CBD game and some just don’t follow Good Manufacturing Practices. Some states like Utah will have manufacturers that have a benefit over others in that they (we) are required to be permitted as a food manufacturer by the Utah Department of Agriculture and Food prior to being licensed as a hemp processor. This ensured they/we invested in clean room, proper sanitation, and developed SOPs, etc.

Your manufacturer should be FDA registered and be licensed with their state. Ensure they have general and product liability insurance. These are easy questions that can be asked, and your manufacturer should be able to provide proof very quickly of these items. If they can’t, keep looking. Research/vet your CBD supplier to ensure they are a real CBD manufacturer and private labeler with real equipment and real employees.

Doing your due diligence will save you significant stress down the road and may even determine your long-term success as a company.

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