Accrol Group Unilever deal a step change in how it’s positioned in the UK (LON:ACRL)

Accrol Group Holdings plc (LON:ACRL) Chief Executive Officer Gareth Jenkins caught up with DirectorsTalk to discuss their agreement with Unilever, validation of strategy, how the deal will contribute to the overall success of the business, outlook and what investors should be looking out for.

Q1: Gareth, straight to the point, the agreement with Unilever plc (LON:ULVR), you must be thrilled with the deal. Can you just update listeners on what this incredible agreement entails?

A1: As you say, we’re really really pleased with the agreement we’ve set up with Unilever.

What it allows us to do is to produce, under licence, a kitchen towel product under the Lifebuoy brand range, and clearly that then allows us to enter the UK retail and grocery market with a market-leading, well known global brand, manufactured here in the UK.

So, we’re really really pleased about the opportunity this new agreement with Unilever gives us.

Q2: Now, you’ve made an enormous investment in the business over the last 4 years. Do you see this deal as a successful validation of your strategy?

A2: I think we do, we’ve spent almost £20 million over the last 4/5 years in new machinery, fully automating all of our sites.

Clearly, the confidence that Unilever had in us delivering this type of product for them is absolutely a real endorsement of the work that many people in Accrol Group have been working on over the past 5 years. It really marks a real step change for the group in how it’s positioned in the UK.

So, absolutely, we’re really pleased with the endorsement from Unilever.

Q3: This is your first licensing deal and it’s a major success story, how do you see this licensed business model approach contributing to sales and the overall success of the business?

A3: We’ve said already that we see this part of our business growing quite considerably, we’re in discussion with a number of different parties on other potential licencing agreements that we could bring to market.

We see this as being around about 20% of our business in the future so it’s a real important part of our business and the reaction that we’ve had from retailers, as we’ve taken the Lifebuoy product to them, has been fantastic.

So, we’re really excited about what a difference it will make to the group going forward.

Q4: Given the cost pressures consumers and retailers are under, do you see the drivers of demand for your products continuing and how do you view the outlook?

A4: I think with regard to the agreement we’ve got with Unilever and Lifebuoy, we see this positioning really nicely in the market, slightly above our private label product, in price point, but significantly lower than the traditional brand.

The reason why we’re able to bring that to market, at such a competitive price, is the low cost base that Accrol Group has positioned itself and the investment that we’ve made over the last 5 years.

So, we see this giving people a real alternative if someone wants a brand at very competitive price then they’ve now got an alternative. The reality about our products is they are clearly everyday items, they are items that people can’t live without and what we’ve got to make sure is we bring options for all consumers in the UK, no matter what their price point is.

Q5: Finally, what should investors be looking our for in terms of news flow over the coming year?

A5: Our year-end finishes at the end of April, we will give a post-close statement quite soon after that with some more updates that we’ll give to the market in regard to our mill investment that we announced in our half-year results. We’ll also update the market in Q1 of next year so from May/June/July onwards, we’ll give a further update around the mill, and our full-year results will be due out around September of this year.

So, quite a lot of information coming out but a really exciting time for the group.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Accrol Group

More articles like this

Accrol Group

Industry leaders welcome landmark plan for UK Advanced Manufacturing

Industry leaders from across UK advanced manufacturing have welcomed the Government’s landmark Advanced Manufacturing Plan (AMP) backed by billions to boost Britain’s manufacturing sector, announced by Business and Trade Secretary Kemi Badenoch today (26 November). The package of

Accrol Group

Jeremy Hunt to announce tax cuts aimed at reviving economy

U.K. Finance Minister Jeremy Hunt will deliver his Autumn Statement budget announcement on Wednesday, facing pressure from within the ruling Conservative Party to implement tax cuts as the country’s economy stagnates. The U.K. Treasury last week announced £4.5

Accrol Group

UK manufacturing delivers productivity boost

The UK manufacturing sector was 6.6 per cent more productive in Q3 this year than the same period in 2022, analysis of ONS data from FourJaw Manufacturing Analytics has found. Analysis by FourJaw, an AMRC spin-out that develops

Accrol Group

Navigating the future of manufacturing

Nicola Scott discusses the future of manufacturing: Sitting at the helm of Crowe UK’s clients and markets team in the Southeast, I have the privilege of working closely with clients from all parts of the manufacturing sector, witnessing their

Accrol Group

Accrol reports margin recovery quicker than expected

UK independent tissue converter Accrol Group Holdings has announced “strong growth” in revenue and profit in its latest results, driven by increasing market share and volumes.  In its results for the year ended 30 April 2023, revenue was

Accrol Group

The resurgence of UK manufacturing

In a recent study of 2436 individuals, conducted by Savanta for Make UK, the manufacturers’ organisation in collaboration with Sheffield Hallam University, a transformation in public perception regarding manufacturing in the United Kingdom is taking place. The findings of the survey, “Perceptions vs Reality”, reveal an

Accrol Group

Accrol Group Full Year 2023 results presentation

Accrol Group Holdings plc (LON:ACRL) is the UK’s leading independent tissue converter, producing toilet tissue, kitchen towel, facial tissue and biodegradable wet wipes. The UK soft tissue market is worth £1.6bn with private label products comprising circa 50%.

Accrol Group

How do Laundry Sheets work?

Laundry sheets are a great alternative to traditional detergent liquids and capsules for anyone looking to make their laundry routine environmentally friendly. With convenience in mind, laundry sheets make washing a breeze – an Ocean Breeze! Not only

Accrol Group

Public believes manufacturing is critical to the UK economy

A new study of 2,436 people shows the majority of the general public thinks manufacturing is hugely important to the future of the UK economy and over three-quarters see manufacturing as delivering solutions today to the challenges of

Accrol Group

The benefits of a laundry sheets subscription

Imagine laundry day, simplified. No more heavy detergent bottles, no more measuring, and no more environmental guilt. At Oceans, we believe that keeping your clothes clean should be effortless and eco-conscious. That’s why we’ve introduced our eco-friendly laundry sheets and

Accrol Group

Accrol performs strongly, gaining further market share

Accrol Group Holdings plc (LON:ACRL), the UK’s leading independent tissue converter, has announced its audited final results for the year ended 30 April 2023, which show strong growth in both revenue and profit, driven by increasing market share and

Accrol Group

Accrol analyst briefing to be held on 26 September 2023

Accrol Group Holdings plc (LON:ACRL), the UK’s leading independent tissue converter, has announced that it will release its Final Results for the year ended 30 April 2023 on Tuesday, 26 September 2023. An analyst briefing will be held online

Accrol Group

The perks of a toilet roll subscription

Have you ever wondered how you can make a difference in the world while still enjoying the little luxuries of life? Well, look no further, because today we’re diving deep into the fantastic world of a toilet roll

Accrol Group

Flush out harsh chemicals

Let’s face it, cleaning the toilet isn’t exactly glamorous, and the harsh chemical odours can make it downright unbearable. Did you know that the average household is unwittingly hosting a whopping 62 toxic chemicals in their cleaning products? Yikes! But

No more posts to show