The market

INVESTORS RELATIONS

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Market drivers

The UK tissue market is worth c.£1.8 billion and it continues to increase in line with population growth –approximately 1-2% per annum. The private label segment of the industry, however, is growing rapidly, taking market share from the best – known brands and delivering sales growth of over 8% year on year (Source: The Grocer). The leading discount retailers are outperforming the market further with reported private label tissue sales growth in excess of 12% year on year (Source: Kantar).

The rapid growth of private label products is being driven by suppliers, like Accrol, producing the best quality for price point paid.

Great value is key and Accrol’s private label range outperforms the brands in all trials for softness and performance. Providing that private label tissue products continue to offer the best value to the consumer, sales of the big brands will continue to decline.

Toilet tissue private label vs branded

Kitchen towel Private label vs branded

Opportunity

Accrol is the largest independent supplier of private label toilet roll and kitchen towel in the UK, supplying three of the top four retailers and all the major discounters.

Following the recent restructuring, the business is operationally efficient, well invested and in a strong position to capitalise on the continuing growth in private label tissue sales and deliver further growth, profitably, in the UK market.

With the largest range of customers in the UK, Accrol is in a unique position to benefit from this ongoing change in consumer buying habits.

This broad customer base also gives insight across all consumer purchasing channels, allowing the Group to monitor buying patterns and react quickly to changing consumer trends.

UK paper market

Innovation

Understanding the consumer is key. A good example of Accrol’s ability to react to market demand is the launch of the new “Oceans” plastic free range. Accrol is the first tissue converter to offer a completely plastic free tissue product. The Group has teamed up with the Marine Conservation Society to offer proven products, in plastic free packaging, giving the consumer choice. The product is priced at a level between private label and branded products, ensuring that the consumer is still able to save money whilst making a more environmentally friendly choice.