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Innovia Films responds to rumors of US pull-out

August 12, 2008

The company says it has no intention of leaving the market.

In making what its leaders call “considered changes” to the availability of its product range in the United States, Innovia Films generated “quite a stir,” says one company official, and rumors resulted in the suspicion that the company would pull out of the US pressure sensitive market altogether.

“We are certainly committed to the US market,” says John Fell, global sales and marketing director, “and we have no intention of pulling out.”

Like all businesses today, Innovia, based in Wigton, England, is subject to massive rises in energy, transportation and raw material costs, coupled with significant fluctuations in exchange rates. John Fell, global sales and marketing director, says that the company’s actions in adjusting its product availability are unprecedented, “but they are a direct result of the current turbulent market we are operating in, coupled with tightening supplies of materials to our customers and our own success.
“We have three key areas of business focus covering flexible packaging, overwrap and labels, and we can report that we have seen growth in all three areas, globally,” Fell says. “This has resulted in an oversold situation which has forced us to appraise the financial return on each of our products/customers, as any business is required to do in these circumstances, looking at the main factors that impact our ability to sustain supply at a cost effective level. This process has meant taking decisions which have resulted in the repositioning of a number of our product offerings.
“In every case where we have reduced supply availability, this has been in consultation with our customers, and where there was believed to be an available alternative. We still offer a wide range of high performance quality products supported by tailored supply chain alignment.
“We recognize that we are a leading supplier to the industry, often with specified products, but we are all in for a tough ride, and like every other company in the labels industry we have had to face the reality of the current trading situation and review how we can remain financially stable. It is essential that we continue to have the ability to reinvest in our business to maintain our competitive edge whilst continuing to offer our winning formula of quality, service and innovation.
“This enforced exercise has allowed us to focus on key areas of our business,” Fell adds. “In the long term this will facilitate our ability to achieve the high levels of service and support that our existing US customers have come to expect and allow us to continue to move forward.
“We are certainly committed to the US market,” Fell says, “and we have no intention of pulling out. This is one of our key focus markets, which we have serviced for over 35 years. In particular, we have supplied films into the labels market for over 15 years. It is our continued commitment to the industry and our frequent innovation that has helped to grow the filmic pressure sensitive label market.
Fell adds that as further evidence of Innovia Films’ commitment to the Americas market, the company will participate at Labelexpo Americas in Chicago in September, where innovative filmic products will be showcased which meet both changing consumer and market demands.”

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