Licensing Agreement with Unilever

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 year1.  With over 70% brand awareness amongst consumers in the UK2, 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: 1Kantar's Brand Footprint 2021 2Unilever 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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