Licensing Agreement with Unilever
01/03/2023 07:00
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RNS Number : 4041R Accrol Group Holdings PLC 01 March 2023
1 March 2023
Accrol Group Holdings plc
("Accrol, the "Group" or the "Company")
LICENSING AGREEMENT WITH UNILEVER
The Board of Accrol (AIM: ACRL), the UK's leading independent tissue
converter, is pleased to announce that, further to its stated strategy to
expand into higher margin, third party licensed brands, it has entered an
agreement with one of the world's largest consumer goods companies, Unilever
plc ("Unilever"), to exclusively produce and sell a kitchen towel product
under its Lifebuoy brand.
Lifebuoy is the third most-chosen FMCG brand globally, being picked by
consumers more than a billion times a year(1). With over 70% brand awareness
amongst consumers in the UK(2), the Lifebuoy kitchen towel product expands
Accrol's offering to include those consumers who prefer to buy global brands
but are seeking best-value. Source: (1)Kantar's Brand Footprint 2021
(2)Unilever consumer data 2022
The Board believes that, following significant investment over the last four
years, Accrol is now the lowest cost tissue-products manufacturer in the UK.
This operational efficiency is expected to deliver Lifebuoy kitchen towel at a
retail price-point positioned between the current market leader and its
private label equivalents, demonstrating exceptional value and quality from a
trusted global brand.
The Lifebuoy range includes two of the top four selling SKUs in the UK's major
retailers and the addition of a kitchen towel product will enhance the
household product offering for Unilever.
Gareth Jenkins, Chief Executive Officer of Accrol, said:
"Last month, we laid out our strategic plans for the business, which included
the expansion of the Group's activities into higher margin, third party
licensed brands. That Unilever has chosen Accrol to bring Lifebuoy kitchen
towel to market is testament to the capability of our business and our
increasingly strong reputation in the market."
Graham Cox, Managing Director of Accrol's Tissue Division, who is leading the
development of Accrol's licensed business model, added:
"This agreement with Unilever, our first licensing deal, is a step change for
Accrol and continues our progress as a market and industry leader. The Group
has ambition and continues to explore new opportunities, including further
licensing deals, to bring high quality products at affordable prices to the UK
consumer."
As announced in the Strategic Review Outcomes on 24 January 2023, the Group's
licensed business model is expected to generate 10% to 20% of Group revenues
in the medium to long-term.
Production of the Lifebuoy kitchen towel product requires no additional
capital investment.
For further information, please contact:
Accrol Group Holdings plc
Dan Wright, Executive Chairman Via Belvedere Communications
Gareth Jenkins, Chief Executive Officer
Richard Newman, Chief Financial Officer
Zeus (Nominated Adviser & Broker)
Dan Bate / Jordan Warburton Tel: +44 (0) 161 831 1512
Dominic King Tel: +44 (0) 203 829 5000
Liberum Capital Limited (Joint Broker) Tel: +44 (0) 20 3100 2222
Clayton Bush / Edward Thomas
Belvedere Communications Limited
Cat Valentine Tel: +44 (0) 7715 769 078
Keeley Clarke Tel: +44 (0) 7967 816 525
accrolpr@belvederepr.com
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