Shares of Blackburn-based toilet roll and tissue maker Accrol Group rose about 7% after it announced that it entered an agreement with consumer goods giant Unilever plc 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,” said Accrol.
“With over 70% brand awareness amongst consumers in the UK, the Lifebuoy kitchen towel product expands Accrol’s offering to include those consumers who prefer to buy global brands but are seeking best-value …
“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.”
Accrol CEO Gareth Jenkins 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.”