How This CBD Company Is Building with Purpose
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Very few industries have seen the rapid growth that the CBD industry is currently experiencing, and while its momentum entices many to enter the market - playing in this market doesn’t come easy. Strict regulations, evolving legislations, and the watchful eye of skeptics require new entrants to prove their legitimacy under immense pressure; and while many struggle, leading CBD retailer Medterra continues to thrive under the microscope.
Conceived as a wholesaling business, the two-year-old company started with supplying premium CO2-extracted CBD to manufacturers looking for a reliable, domestic supply. The company evolved its positioning after quickly realizing there was greater opportunity in offering branded CBD products for a more accessible price than what was currently in the market.
Medterra co-founder Jay Hartenbach offers tips for thriving in the dynamic world of cannabis commerce that everyone can learn from—regardless of what industry you’re in.
Be willing to change course.
Medterra’s primary goal was to provide manufacturers with high-quality, compliant CBD—until they recognized a void in the retail space.
“When we were looking how the industry was evolving, online retail companies were popping up left and right, yet our friends and family continually complained about being able to find affordable CBD products they could trust.” Hartenbach says. “We saw an opportunity to make CBD more affordable and increase the trust factor for new consumers.”
Never forget: Quality is key.
To compete in a volatile market, high standards are non-negotiable. “If you want to build something sustainable, you simply cannot cut corners,” Hartenbach says. “When we started working with our farm, CO2 extraction was not the norm, because it’s expensive to get up and running. However, CO2 extraction creates a cleaner, higher quality product that consumers can trust.”
From a business standpoint, it was also the right thing to do. “Investing in the quality of products upfront eliminates the need to change as stricter regulations come into place.”
So is differentiation.
With the continual influx of competition, it is no longer enough to sell generic CBD products. Whether it is a unique story or innovative products, entrepreneurs entering the space need to find their niche and how they can provide a unique value to potential consumers.
To drive innovation, Medterra is working with clinical researchers and formulators to create unique CBD-blended products. Combining the powerful results of other natural ingredients, Medterra’s products generate strong consumer loyalty and prevent commoditization of their offerings.
“Consumers are becoming more educated by the day,” Hartenbach says. “Imitation products will be the first to falter as larger players enter the space. For entrepreneurs looking to get started, take time to find a sustainable advantage—the effort will be worth it as the industry matures.”
Grow at your pace.
Whether in hemp or other retail industries, new competitors and fast growth can create distractions for entrepreneurs. Are they going to potentially slow your growth? Could they make my products obsolete? No matter what, Hartenbach recommends building strategically and within your company’s capabilities.
“After our initial retail success, we assumed it would be easy to spin off countless product lines to match our competitors. It was unorganized and we were overextending ourselves,” he says. “Now we make full business plans outlining why a new product is needed and how it will fit into our supply chain. It seems overly formal, but it really forces us to think through our next steps as a company.”
This thoughtfulness is starting to pay dividends. Now in discussion with major national retailers, Medterra's stable infrastructure and consistency is ready for the mainstream push of CBD into the lives of everyday consumers.