Ask Our Experts: CBD Branding from Concept to Market
Q: What are some key considerations when taking an infused CBD brand from concept to market?
By William Sumner, Hemp Content Manager, New Frontier Data
A: Regardless of one’s industry, bringing a product from concept to market is a challenging process requiring several concrete objectives. In the CBD industry, marked by regulatory uncertainty, those can be even more difficult to realize. Three major milestones to consider when developing a CBD-infused product include:
Capital requirements: How much investment is required to bring the product to market? What are necessary expenditures for manufacturing costs, regulatory compliance, marketing/advertising, and other, sometimes unexpected fees and costs associated with bringing a product to market? For anyone still seeking investors, it is vital to have all capital requirements mapped out before taking additional steps.
Selecting a manufacturing partner: Without a dedicated production facility, a marketer will need to identify a partner to manufacture the products. Ascertain whether production needs can be fulfilled, and to what extent capabilities exist to scale accordingly as the brand grows. It is also important to research any potential partner, including a tour of operations and facilities prior to any binding commitments.
Retail distribution channels: Having the best CBD brand in the world will not matter unless customers have access to purchase products. When considering retail chains for selling products, producers must ascertain whether they can fulfill the retailer’s needs. Gaining a placement foothold with a retail giant like Walmart may seem like an aspirational dream, unless reality proves that their supply chain requirements are logistically unattainable.
For more information about launching an infused CBD brand, check out Episode 2 of New Frontier Data’s free Hemp Cannabinoid Webinar Series: CBD in Food & Beverage.