The cannabis industry is evolving rapidly, with one of its key trends being the rise of the white-label business model. White labeling allows specialized cultivators to produce high-quality cannabis for established brands without the costs associated with marketing the product under their name.
Desert Horizons, a cannabis cultivation company based in Cathedral City, California, exemplifies how this model creates new opportunities for craft cannabis businesses.
At the helm is Jessica Alfonso, COO of Desert Horizons, whose company produces cannabis for some of the most recognizable brands in the market. Alfonso emphasizes the importance of selecting the right genetics, managing operational costs, and building strong relationships with vendors and cultivators. For Desert Horizons, the key to success lies in maintaining product integrity while delivering premium cannabis to other companies.
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The White Label Advantage
White labeling allows Desert Horizons to focus exclusively on cultivation without the additional costs and complexities of branding or marketing. "We have very much control over how we operate," Alfonso told Benzinga, highlighting the benefit of streamlined production.
Unlike vertically integrated operations, white-labeling enables Desert Horizons to reduce overhead, improve efficiency and maintain quality.
This model also allows their partner brands to focus on marketing and distribution, reducing their operational risks.
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Mastering Cannabis Genetics For Success
A critical aspect of white-label cannabis production is ensuring that cultivated genetics align with market demand. Alfonso explains that success isn't just about high yields, but about understanding trends and controlling costs. "Strain selection is very important for sure, but keeping our operational costs down is the game changer," she notes.
Desert Horizons focuses on growing cannabis that commands higher prices, ensuring production costs stay aligned with market demand.
Alfonso takes a meticulous approach to sourcing genetics, working with trusted nursery partners, and thoroughly vetting their offerings. "I like to talk to other cultivation operations that use them to ensure the proof is in the pudding," she explains, underscoring the scrutiny applied before partnering with a nursery.
Efficient Operations And Teamwork
Behind the scenes, Desert Horizons operates with remarkable precision, powered by a team of just four dedicated employees who manage over 280 grow lights. "We run like a well-oiled machine," Alfonso explains, crediting their success not only to careful labor management but to the exceptional talent of the team.
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Each of these four employees is responsible for what many other operations would require a much larger workforce to achieve, with Alfonso emphasizing the importance of having “a rock star team.” She notes, “I’ve seen three people do the work of six or seven, and they’re doing it with a smile, not because they’re afraid of losing their jobs, but because they love what they do.”
In addition to strong team dynamics, advanced technology plays a critical role in their efficiency. Desert Horizons employs crop steering, an advanced technique that allows them to optimize growing conditions for each strain. This technology monitors water and nutrient uptake and tailors environmental conditions to maximize yield and quality.
"If you're a cultivator and you're not utilizing crop steering, you're kind of shooting yourself in the foot," Alfonso says. Crop steering enables Desert Horizons to push each genetic strain to its full potential, further enhancing operational efficiency.
By combining a small, capable team with cutting-edge technology, Desert Horizons can maintain the high-quality standards their clients expect while keeping operational costs low. "Labor is one of the most significant expenses in cultivation," Alfonso explains, “but with the right people and technology, we’ve been able to keep our operation efficient without sacrificing quality.”
Desert Horizons maintains a hands-on approach, relying on manual labor rather than automation. Alfonso explains that the facility's smaller size allows them to avoid automation without sacrificing efficiency. "We do everything by hand, and while it's labor-intensive, having clear processes and a well-organized team makes it manageable," she says, ensuring each task is executed with precision.
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The Future: Expansion Into The CPG Market
Looking ahead, Desert Horizons is planning to expand into the consumer packaged goods (CPG) sector. Alfonso says she’s is excited about creating their brand, which would give them more control over the final product. However, she’s committed to maintaining the craft quality that has become the company's hallmark. "No matter what scale we're at, quality has to be the same," Alfonso asserts. "I want us to be big in reputation, and the rest will follow."
While the company focuses on white-label production for other brands, Alfonso envisions a future where Desert Horizons becomes a recognized name in its own right. For now, they continue perfecting their cultivation processes, balancing operational efficiency with craft cannabis quality in an increasingly competitive market.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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