Canopy Growth has announced plans to transition from production to sourcing third-party providers for its vape, beverage, edible, and extract products while focusing internal efforts on higher-margin categories such as flowers, pre-rolls, soft gels, and oils, as reported by BNN Bloomberg. This shift reflects the current landscape of the cannabis market, where a wide range of products, including flowers, pre-rolls, vapes, edibles, extracts, oils, and smoking and vaping hardware, can be white-labeled or private-labeled.
The rise of white/private labeling in the cannabis industry presents both opportunities and challenges for companies. On the one hand, it may become easier for new competitors to enter the market. On the other hand, existing companies can take advantage of the situation by focusing on quality, creating a strong brand identity, and investing in research and development. It is worth noting that the tobacco industry has successfully leveraged white labeling as a profitable strategy, and the same could be achieved in the cannabis market.