The cannabis industry is undergoing rapid change, with one of the most prominent trends being the rise of the white-label business model. This model allows specialized cultivators like Desert Horizons to focus on producing premium cannabis for established brands, without the added costs and complexities of marketing their own products. Desert Horizons, based in Cathedral City, California, exemplifies the success of this approach.
Jessica Alfonso, COO of Desert Horizons, is at the forefront of this innovative model. She emphasizes the importance of strategic decisions in building a successful white-label operation, including:
*
Choosing the Right Genetics:
Desert Horizons prioritizes cultivating strains that are in high demand, ensuring their production aligns with market trends. Alfonso meticulously sources genetics from trusted nursery partners, conducting thorough research and speaking with other cultivators who use those genetics to confirm their quality.*
Maintaining Operational Efficiency:
Desert Horizons operates with remarkable precision, managing over 280 grow lights with a team of just four dedicated employees. Alfonso attributes their success to effective labor management and a highly skilled team, emphasizing the importance of “a rock star team” that is passionate about their work. Their efficiency is further amplified by advanced technologies like crop steering, which allows them to optimize growing conditions for each strain, maximizing yield and quality.*
Strong Vendor and Cultivator Relationships:
Building strong relationships with vendors and cultivators is crucial for Desert Horizons’ success. Alfonso emphasizes the importance of trust and communication in ensuring consistent access to quality materials and ensuring their supply chain remains reliable.The white-label model offers several advantages for Desert Horizons:
*
Focused Production:
They can concentrate solely on cultivation without the overhead and complexities of branding and marketing.*
Reduced Overhead and Improved Efficiency:
By outsourcing marketing and distribution, Desert Horizons minimizes operational costs, allowing for greater efficiency and higher profit margins.*
Maintaining Quality:
Their focus on cultivation allows them to maintain the high-quality standards demanded by their partner brands.Desert Horizons’ approach combines meticulous attention to genetics, efficient operations, and a dedicated team to deliver premium cannabis products to other companies. This has positioned them as a leading player in the white-label market and has earned them the trust of numerous established brands. As they look to the future, Desert Horizons plans to expand into the consumer packaged goods (CPG) sector, building their own brand while staying committed to the same high-quality standards that have become their hallmark. The company’s success demonstrates the potential of the white-label model in the cannabis industry, allowing specialized cultivators to flourish while providing established brands with access to high-quality products.
