Boots on march into Europe
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BOOTS, the drugs and toiletries retailer, is poised to expand its contract manufacturing division. It will announce a continental acquisition within the next few days.
The deal is expected to be the first of several aimed at dramatically increasing access to European retailers for its cosmetics and toiletries.
The purchase, understood to involve less than pounds 10m, marks a return to the continent, where Boots has had a mixed history. In 1993, it pulled out of retailing in France, selling its Sephora chain of health and beauty shops.
Boots sees considerable growth prospects for its contract manufacturing business, which makes private-label products for rival retailers as well as own-brand products.
However, winning customers overseas has proved notoriously difficult, because continental retailers prefer to source locally. Boots hopes the imminent deal will resolve this deadlock.
Private-label toiletries on the continent make up a tiny share of the market, where big-name brands are preferred. But their share is growing fast, especially in France, Spain and Germany.
Boots is one of the biggest private-label manufacturers in Europe. The division made operating profits of pounds 17.8m on sales of pounds 216m last year. As well as toiletries and cosmetics, it also makes over-the-counter drugs.
Contract manufacturing could be a useful growth area for Boots, whose reputation in the City has been tarnished by its failure to find a successful second string to match its cash cow, the Boots The Chemist chain.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments