Unilever has struck a new licensing agreement with tissue converting company Accrol to exclusively produce and sell a kitchen towel product under its Lifebuoy brand.
According to the brand, Lifebuoy is the third most-chosen FMCG brand globally, being picked by consumers more than a billion times a year.
Following ‘significant’ investment over the last four years, Accrol is now the lowest cost tissue-products manufacturer in the UK.
With over 70% brand awareness amongst consumers in the UK, the Lifebuoy kitchen towel is sold at a price positioned between the current market leader and its private label equivalents.
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This operational efficiency is expected to deliver Lifebuoy kitchen towel at a retail price-point
The Lifebuoy range includes two of the top four selling products in major UK retailers and the addition of a kitchen towel product that will enhance the household product offering for leading manufacturer Unilever.
“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,” chief executive officer of Accrol, Gareth Jenkins said.
He added: “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.”
Managing director of Accrol’s Tissue Division, Graham Cox also commented: “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,” Cox said.
It comes as Tesco, Unilever and In Kind Direct have launched the second phase of their partnership to help UK families tackle hygiene poverty.
