Packagers plan to expand

May 28 2008 by Peter McCusker, The Journal

A PACKAGING company in Northumberland has become the UK market leader after winning a raft of contracts with some of the country’s premier retailers and food manufacturers.

Cramlington’s Alternative Supply Company expects to lift its turnover from £7m last year to £10m in 2008 and plans to increase its workforce from 45 to 60 staff as it expands.

Gerard Connolly and partner Elaine Hall started the company from an industrial unit in Prudhoe in 2001, landed their first contract with Sainsbury the following year, and have delivered strong growth ever since.

The firm, based in the former Europa Magnetic factory on the Nelson Industrial Estate, labels 500 million tubs and lids every year on a round-the-clock production schedule. Since its birth the duo – who had previously worked for a packaging company in Durham – have invested £6m in machinery and buildings to ensure they remain ahead of the competition.

Consett-born Mr Connolly said: “We launched the company by spending £500,000 on a printing machine which allowed us to develop a high quality printing format for plastic tubs. The quality we achieved was well ahead of anything else available at that time.

“We got our first break with Sainsbury the following year, when they were let down by a supplier, and we have grown our turnover by almost £1m every year since then.”

The company’s success was recognised last year when managing director Ms Hall won the ‘Woman in Technology or Innovation, category in the North East Woman Entrepreneur of the Year Awards.

The Alternative Supply Co got its name when the two were meeting potential customers who were looking for higher quality packaging companies and kept saying to them “we could do with an alternative supplier”. It now supplies retailer such as Tesco, Marks & Spencer, Asda and Sainsbury as well as manufacturers such as Del Monte and Scottish ice cream maker Mackies.

Mr Connolly said: “There was definitely a gap for a manufacturer who could produce high quality labelling for retail products. We spent a lot of time researching the market and this has been justified by our ongoing success.”

Their growing confidence has seen them step into the export market for the fist time this year and in the first three months they have shipped two million pots to Ireland.

Mr Connolly, the sales and marketing director, added: “We have created a niche in a £3bn market for a high quality product. We are now the market leader and the potential for the company is huge.”