If you’ve peeked into the realm of the cannabinoid (CBD) industry, then you’ve probably noticed the phrase “Vertical Integration” tossed around a few times.
For a Short Definition: Vertical integration is a business model where companies bring their internal processes together for stronger control over their product’s supply chain.
But since vertical integration is a broadly applicable strategy, it takes on a slightly different shape within every industry its used. This means the way cannabinoid suppliers use vertical integration to manufacture their products is unique, and right now, this approach is allowing the CBD industry to take the world by storm.
Understanding Vertical Integration in CBD
For newcomers learning about the CBD industry, the term vertical integration might conjure images of those vertical indoor cannabis growing operations you frequently see on T.V., with rows of flourishing plants stacked beneath LED lights. But of course, that’s not at all what CBD vertical integration is about.
This is a strategic concept rather than a physical one, and it occurs when a business connects two or more of its supply chain processes (such as sourcing materials, manufacturing products, distribution, and retail). By structuring the CBD supply chain to be completely connected from top-to-bottom (hence vertical), CBD companies can maximize their output efficiency and the reliability of their product’s performance.
For an example of a vertically integrated CBD operation, let’s take a quick look at ourselves.
The Pure Metta Difference – Vertically Integrated
Our Hemp CBD products are controlled at every aspect of the supply chain—from the seeds they start out as, to the shelves they’re eventually purchased from.
The process starts with our natural genetic strains of phytocannabinoid rich hemp which are grown in Colorado, USA, under strict guidelines that include 100% organic farming practices. At those same farming sites, our Hemp CBD products undergo rigorous quality control testing to guarantee they meet industry standards along with our own CBD regulations and personal expectations. Once approved, those products are packaged and shipped out to our customers.
From farming, to extraction, to purification, our complete CBD vertical integration process allows us to ensure the highest quality control for each of our products.
Other Benefits of CBD Vertical Integration
Fine-tuning a CBD supply chain for greater efficiency in production, and performance, creates a huge advantage for companies, and their customers. The level of control they have allows them to set themselves apart from competitors in terms of quality, identity, and the room they have to grow.
Products People can Trust
By outsourcing less and optimizing an in-house supply chain, companies remain closer to their business operations and can provide consumers with a transparent look at every step behind the scenes. This is something that’s becoming especially valuable to modern consumers of organic farm goods, and impacts everything from foods, to clothing, to cannabinoid products.
New Research Opportunities
The clear-cut practices and traceable production methods which vertical integration provides means that researchers are having an easier time than ever before in discovering ways to enhance CBD growth—and there’s still plenty left for everyone to learn.
After all, CBD products just recently became available for U.S. consumers and manufacturers to engage with, so now a massive wave of CBD solutions are being explored for the first time. Everything from the many applications of CBD in products, to the innovative combinations of growing conditions, are currently under research.
In other words, due to CBD vertical integration, new groundbreaking opportunities are presenting themselves within the world of the CBD all the time. At this point in 2019, we’re still only witnessing the beginning.