Sometimes a business spots a gap in the market with precision timing. Transcend Packaging might just be one of those companies.
Last week, the company announced it was partnering with Plastico, the UK’s market leader in catering products.
This long-term supply agreement and strategic partnership will ensure that food and drink service companies will be able to access the same quality, UK-made paper straws supplied to major brands.
It follows the news in June this year that the company based in south Wales had struck a deal securing a contract to supply paper straws to global fast food chain McDonald’s.
Not only was this good news for the Valleys town of Ebbw Vale – the area will benefit from 200 new jobs once the factory is running at full capacity – it was also a positive sign for the environment, as McDonald’s uses 1.8 million straws every day in the UK alone.
Paper straws haven’t been produced in Britain for several decades. However, a combination of the BBC’s popular Blue Planet II series and growing political awareness of the environmental dangers of plastic straws meant Mark Varney and his business partners saw a niche in the market.
Varney, sales and marketing director at Transcend Packaging, realised that while businesses phasing out plastic straws was great news, if they then had to import paper straws from China it completely defeated the object of the exercise.
A ban on single-use plastics, such as straws and stirrers, in the UK could come into force by early next year. As more chains announced plans to phase out plastic straws, Transcend Packaging saw the opportunity and seized the moment.
Speaking about the latest deal with Plastico, Varney explained: “This new strategic relationship leverages our own UK-based production facility with the market reach of Plastico that now offers customers the ease, reliability and consistency in supply that sourcing from other markets or suppliers would be difficult to match.”
Lorenzo Angelucci, managing director of Transcend Packaging, said: “We founded Transcend Packaging because we aspire to help companies become more sustainable across a broad range of products from paper straws to folding cartons.”
Suffice to say, for a company that was only established last year, Transcend Packaging has had a busy few months.
Transcend Packaging secured investment through the SFC EIS Growth Fund. Designed to help growing businesses move out of their start-up phase, the fund invests in a variety of industries.
For more information about the fund, contact Enterprise Investment Partners on 020 7843 0472 or firstname.lastname@example.org