Carton printer Benson proves it's well placed to weather the economic storm

However, while the others in the list were regarded as chokers when it came to the crunch, the Leicester-based company is a model of consistency.

The company’s purpose-built food packaging headquarters demonstrates its manufacturing philosophy. The privately owned printed carton manufacturer consistently targeted a high turnaround production schedule and short makeready times. As a result, every corner of the 12,000m2 site is set up to be as fast and efficient as possible.

Its B1-format litho presses include two Manroland 700s and a Heidelberg Speedmaster XL105 six-colour plus coater, the latest addition, which runs at 18,000 sheets per hour. There are also two other B1 Heidelberg units, both CD102s, and all five of the presses can print UV-based inks and coatings.

Attention to detail
It’s not just the scale of the factory or the kit that is impressive, but also the attention to detail. An ink laboratory is in full swing, and fully equipped with Vale-Tech ink mixing systems to ensure accurate and repeatable colour composition.

The site, a division of the Benson Group, trades as Benson Box and since 2000 has been dedicated to the production of food packaging. The company has been in the business of making packaging products since being founded by William Watson Benson over 85 years ago.

In 2002, Benson Box managing director Mark Kerridge started to further develop the business’s implementation skills. It set its sights on substantial growth, and in the next few years several additional companies were acquired. They included Gateshead-based chilled-food specialist Integrated Packaging, which was purchased in 2007, and the Benson Group’s first diversification into pharmaceutical packaging was with Cheshire-based Medica in 2005. Print Design and Graphics, a food packaging company based in Newcastle, was also acquired in 2006.

Last week, Benson Group announced that it had acquired the order book and various trading assets of Cameron Linn, in a last-ditch deal as the food packaging company was to be liquidated. The purchase should bolster the company’s turnover to in excess of £93m.

Overall, investment in new plant and equipment across the four group sites has been in excess of £25m since 2000. Excluding Cameron Linn, there are now 11 B1 presses in food production and six litho presses in pharmaceutical: two B1 and four B2 presses, and one mini-web at Medica for high-speed, high-volume leaflet printing. The group employs 800 staff across the four sites and aims to beef up its current turnover to £100m by 2010 through further acquisitions in the UK and the rest of Europe.

Diversification into the pharmaceutical industry was a step into a strong and growing market, according to Kerridge. We felt we could successfully expand into it. However, he adds that the selling processes of the food and pharmaceutical markets are still very different. For food cartons, it’s all about speed to market. It’s driven by product launches, seasonal brands and immediacy of supplier. With pharmaceutical products, there is a longer-term relationship, he says.

Positive forecast
The key challenges for both markets are fairly similar. It’s about continual growth. The forecast is fairly positive, for example in the pharmaceutical market there has been the emergence of lifestyle drugs. For the medium term, volumes will continue to drive forward despite the uncertain terms of the financial markets.

Over the past 20 years, the packaging market has experienced rapid consolidation. And, according to Kerridge, that trend will be accelerated by the ailing economy as he believes that manufacturing will experience more difficulties over the next 12 months. As the financial crisis washes in there will be more casualties, he says.

Yet Kerridge is adamant that market conditions can also provide opportunities. He says the company will continue to drive forward by getting even shorter lead times, becoming faster and more efficient.

Come October 2009 there is a strong possibility that Benson Group will once again be at the Grosvenor in London with fingers crossed. There is no guarantee that it will come out on top, but there is no doubt the company is a winner.

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Benson Group Factfile
Headquarters Bardon, Leicestershire
Managing director Mark Kerridge
Products Carton packaging for pharmaceutical and food products
Turnover £93m
Staff 800
Chairman Andrew Benson, grandson of company founder William Watson Benson
Clients GlaxoSmithKline, Northern Foods, Reckitt Benckiser, Greencore, Bakkavor