White labeling is a proven strategy that puts companies on a fast track for growth. For businesses looking to expand without heavily investing in manufacturing, working with a contract manufacturer allows companies to focus on branding and marketing while the actual production occurs behind the scenes.
Established candy manufacturers are uniquely positioned to support these emerging and expanding brands. By forming white label partnerships with these emerging brands, makers of gummies, chocolates, hard candies, and infused confections can increase production volume, scale efficiently, and diversify their client base, all without the time and expense of extensive research and new product development.
In this blog, we’ll explore some key considerations for implementing a white label business model and explain how diversifying your client base can help scale your candy business, even in challenging markets.
Expanding Your Business Line
Adding white labeling services to your business allows you to increase production while continuing to use existing equipment and proven recipes without making significant internal changes like developing new recipes or investing in specialized equipment. If you already have an efficient Universal Depositor, Demolder, and a selection of silicone molds, scaling may be as simple as increasing batch volume rather than purchasing new machinery.
The business aspect, however, is different. Selling candy directly to customers versus offering white-labeled candy-making services are two very different lines of business and must be managed accordingly. For manufacturers — infused or just plain sweet — that began as a DTC brand, it is crucial to ensure your focus remains on ensuring exceptional quality with great gummy recipes, optimized kitchen production, and consumer-focused marketing. Candy makers must assess operational readiness to ensure expansion doesn’t disrupt current production.
Where to Start
Starting small is important during any new business expansion, and white labeling is no exception. By doing so, candy makers are able to identify bottlenecks, refine SOPs, and evaluate where hidden costs may be lurking. If you are already making blue raspberry gummy ropes with this mold, scaling that item or introducing just one additional flavor or gummy mold shape may be all that is needed for sustainable growth.
Determine Market Offerings
White labeling can take many forms – from standard recipes and shapes to custom flavors or full-contract manufacturing. It is important to clearly define what you offer (and what you don’t!) before engaging with potential clients.
Establishing clear boundaries upfront helps manage client expectations, protects your operations, and helps set the state for smoother long-term partnerships.
Choose the Right Level of Visibility
As the candy manufacturer, the majority of risks and responsibilities will fall on you, making regulatory compliance and quality assurance even more critical. Before onboarding any clients, ensure all certifications, documentation, and compliance systems are in place and up-to-date. White label partners may request access to proprietary information, so non-disclosure and confidentiality agreements should be established early in the partnership.
Additionally, candy makers may want to receive some public credit for the final product. Choosing whether or not to display your brand name on the client’s label is an important decision, as the client may have strong feelings about that choice as well. Some may prefer complete anonymity, while others may see value in highlighting a trusted manufacturing partner.
Ensure Production Capacity
Before scaling, perform testing and analysis at various stages to ensure the existing production line has the appropriate capacity to scale. This process helps identify potential bottlenecks, confirm research availability, establish production benchmarks, and ensure your facility can handle increased demand without compromising quality or delivery timelines.
Define Target Partners
Candy manufacturers already have the expertise new brands are seeking. Emerging CPG brands, supplement creators, or makers of regulated infused gummies will value partners with existing expertise and a proven track record of success. Whether your ideal clients are emerging CPG companies, retailers creating new house brands, or international brands entering new area markets, the best business partnerships are built with brands that understand candy-making and respect the experience you already have.
Implement a Targeted Marketing Strategy
A full-funnel marketing strategy is just as essential for your new B2B business line as it is your DTC brand’s success, and the steps are fairly similar. Determine a reasonable pricing strategy that balances profitability with market competitiveness. Develop a new landing page or website, new targeted messaging, and sales materials that clearly outline your white labeling capabilities. If needed, strategy and marketing agencies can assist with brand positioning, sales pitch deck creation, and campaigns designed to drive client acquisition and long-term retention.
Consider Truffly Made Your First Brand Partner!
At Truffly Made, we are committed to supporting our customers’ success at every stage of growth. Whether you need help optimizing recipes to align with larger production volumes, automating equipment for a hands-off approach, or scheduling routine maintenance for your machines, our team is happy to support your growth journey in any way we can.
Reach out to us anytime at info@trufflymade.com.