Adding innovation to private label products McBride

aDDInG InnoVaTIon To PRIVaTE LaBEL PRoDuCTs

McBride is a global leader in the development and manufacture of private label household and personal care products. Philip Yorke takes a closer look at a company that continues to expand its product portfolio and set the standards for the industry.

McBride was founded in Manchester, England in 1927 to supply chemical processing products to Lancashire’s cotton industry. Following consistent growth, in the 1960s the company moved into producing washing-up liquid and fabric conditioners further to growing demand for supermarket private labels. The fast expanding company was acquired by BP in 1978 and was established in its present form in 1994 following BP’s decision to sell its Consumer Products division.

Rapid expansion soon followed with key acquisitions made in the UK, Holland, France and Poland. More recent acquisitions include the purchase of Dasty, an Italian producer of private label household cleaning liquids in 2007. Further expansion then followed in the Far East and in eastern Europe.

Today the company operates across 12 countries with 17 manufacturing facilities across Continental Europe and the Asia Pacific. With a turnover approaching €1 billion and 4400 employees worldwide, McBride is twice the size of its nearest competitor.

Delivering scale advantage

McBride is continuing along its strategic path to become the leading European manufacturer and supplier of co-manufactured and private label products in the household and personal care markets.

In 2015, following a number of years of disappointing results, the group entered into a transformation stage with a new management team driving a fresh, strategic direction. This transformation process helped to optimise McBride’s activities by maximising its market-leading position and size to deliver the comprehensive scale advantage the company enjoyed, for further value creation and new growth opportunities.

A number of key developments in McBride’s main markets mean that its scale and geographic spread will be an increasingly important element of its supply capabilities and growth. These developments include the consolidation of retailers in many parts of Europe, the emergence of discounter retailers with their own private label offers and the drive by many established retailers to simplify their product ranges and supplier base. These changing market forces allow the company to leverage its opportunities for further growth.

manufacturing capabilities

The McBride Group operates a number of manufacturing sites acrossContinental Europe and the Asia Pacific, which are aligned with its commercial activities to support its regional market requirements and to create synergy between its diverse manufacturing activities. The company’s extensive network of manufacturing locations and assets offer unrivalled capacity and capabilities for both retailers, private label and branded product retailers for outsourced manufacturing.

The current market dynamics offer the company yet further growth opportunities, requiring targeted investments aligned with its selective market and product offerings. This will allow for a substantial improvement in its cost-competitiveness and operational excellence.

McBride’s R&D, production expertise and technologies include the development and manufacture of powders, liquids, tablets, soluble sachets, triggers, aerosols, creams and lotions, as well as specialist air fresheners.

However, despite its ambitious acquisition heritage, which continues to this day, and its strong organic growth, the company remains clearly

focused on its two chosen product categories of household and personal care products.

In the household cleaning sector it produces laundry products, dishwasher products, household cleaners, toilet cleaners and air-care products.

Recent investments in new technology,such as a high-speed line that can manufacture PET bottles and fill them within the same time, has made its UK Middleton factory one of the most efficient and costeffective in the McBride Group. Furthermore, future investments for other manufacturing facilities are also planned. Growing product portfolio

Despite the fact that McBride’s core business is private label products, the company also has a growing portfolio of its own branded products within the household and personal care sectors. These brands represent an important new opportunity for growth particularly in emerging markets and in eastern Europe, where private label is still in its infancy. This development also creates an opportunity to develop and test new ideas, products and packaging technologies, which are subsequently often adopted by its private label customers.

Typically the big brand owners turn to McBride when they have shortterm or medium term capacity issues, or where they need a second manufacturer to spread the risk. Whatever the requirement, McBride’s unrivalled expertise in production, formulation and logistics means that it can deliver whatever level of support is needed, from purely contract manufacturing, to the entire process from concept to packaging and delivery. The company plans to continue to invest in its growth regions and categories to further leverage its capabilities and maintain and expand its support to major retailers across the world.

For further details about McBride’s innovative products and private label services visit: www.mcbride.co.uk