Building on Success

Jan 30
08:32

2009

Paul Tye

Paul Tye

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Producing packaging products for some of the food and pharmaceutical industries' major players, the Benson Group is the UK's leading privately owned c...

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Producing packaging products for some of the food and pharmaceutical industries' major players,Building on Success  Articles the Benson Group is the UK's leading privately owned carton suppliers. Boasting state-of-the-art technologies at its four sites across the UK, over which 790 people are employed, the company's facilities are amongst the best in Europe. It has grown significantly since the turn of the century, with over £25 million spent on new equipment for the plants in the Midlands, the North West and the North East of England.

A 130,000 sq ft production and warehousing facility in Bardon, Leicestershire is the location for the company's impressive headquarters. The site is responsible for the manufacturing for the Benson Group's many clients in the food and drink industry. The same can be said for the two North Eastern facilities, which are located in Newcastle and Gateshead and boast a combined total of 200,000 sq ft of space. The fourth site is located in Crewe and is home to Medica Packaging - an organisation that was acquired in 2005. With 73,000 sq ft of manufacturing, warehouse and office space, Medica is responsible for working with customers in the pharmaceutical and healthcare industries.

The Benson Group is an organisation that has a rich tradition of producing packaging products, having been established over 85 years ago to serve Leicestershire's shoe and hosiery sectors. Over the years, the company has developed its product portfolio to meet the changing needs of the market, and can boast a current turnover level of about £83 million. A family-run enterprise since it was founded, it remains in private ownership with Andrew Benson - grandson of founder, William Watson Benson - providing the overall vision as the chairman of the board.

Whilst always competitive, the Benson Group has shown significant growth since 2002. Through a combination of a change in marketing strategy and the shrewd leadership of Managing Director Mark Kerridge, the company's profit margins have been positively transformed. But perhaps the most important factor has been the commitment to progress and expansion through a mixture of acquisition and organic growth. The order book of Robor Carton was added in 2004 while Medica Packaging and Print Design & Graphics Ltd were purchased in 2005 and May 2006 respectively.

The most recent acquisition is that of Integrated Packaging Limited, which was agreed in December last year and will add £18 million to The Benson Group's turnover. Speaking about the purchase, Mark said: "Integrated Packaging has responded to highly competitive market conditions by investing in facilities, equipment and staff development. A partnership with Benson Group will help build on that position and escalate the achievement of ambitious targets."

Speaking about the Benson Group's performance over the past two years, Mark continued: "We have seen good organic growth in the business overall and the acquisitions have enabled significant growth. We have been pleased by the rapid integration of both Medica and PDG into the Group and look forward to that pattern being repeated with Integrated Packaging. A positive investment for growth strategy is paying dividends particularly in terms of maximising capacity across all sites."

With Integrated Packaging securely positioned under the Benson Group banner, following acquisition in late 2007, the company has confirmed itself as a fully-fledged member of both the food and pharmaceutical fraternities. Not that Mark is complacent, looking to the future he says: "The immediate focus is to continue to grow the Benson Group in an organic way. It has grown by more than ten per cent every year for the last five years, so while there are no further acquisitions planned at the moment, I certainly wouldn't rule them out in the near future."

Speaking about his long-term hopes for the organisation, Mark continues: "The conditions of the market, both here and in mainland Europe are mixed but there are certainly many opportunities to be had. I believe that the company needs to develop a little further but looking forward the vision is certainly to take the company and make it a success in Europe, which it is more than capable of."

Benson Group's list of clients reads like a "who's who" from their respective industries, encompassing well known names such as GlaxoSmithKline, Northern Foods, Cadbury Schweppes, Greencore, Bakkavor and all of Britain's leading supermarkets. Many of these relationships are long-standing and correlate with the company's commitment to building close partnerships with its clients. This is achieved through inviting customers to present their specific needs and ideas to the Benson Group's knowledgeable staff, who in turn strive to provide the most efficient and cost-effective packaging solutions.

Close working relationships are also encouraged between Benson Group and its suppliers, including companies such as finishing equipment provider Bobst, Arden Dies with its cutting tools, and leading press manufacturers such as Heidelberg and Komori.

There is no reason why such service - alongside the company's dedication to innovation, operational efficiency and environmental awareness - cannot be replicated on the continent. Since Mark took the reins of the company in 2002, it has grown at a staggering rate: "We have a can do, will do attitude", he explains. With that in mind, you can expect to see the company carving out a prominent position in the European food and pharmaceutical packaging sector in the not too distant future.

Paul Tye

This article originally appeared in the leading industry journal “Folding Carton Industry”