1 March 2023

Accrol Group Holdings plc

("Accrol, the "Group" or the "Company")

LICENSING AGREEMENT WITH UNILEVER

The Board of Accrol (AIM: ACRL), the UK's leading independent tissue converter, is pleased to announce that, further to its stated strategy to expand into higher margin, third party licensed brands, it has entered an agreement with one of the world's largest consumer goods companies, Unilever plc ("Unilever"), to exclusively produce and sell a kitchen towel product under its Lifebuoy brand. 

Lifebuoy is the third most-chosen FMCG brand globally, being picked by consumers more than a billion times a year¹.  With over 70% brand awareness amongst consumers in the UK², the Lifebuoy kitchen towel product expands Accrol's offering to include those consumers who prefer to buy global brands but are seeking best-value.  Source: ¹Kantar's Brand Footprint 2021 ²Unilever consumer data 2022

The Board believes that, following significant investment over the last four years, Accrol is now the lowest cost tissue-products manufacturer in the UK. This operational efficiency is expected to deliver Lifebuoy kitchen towel at a retail price-point positioned between the current market leader and its private label equivalents, demonstrating exceptional value and quality from a trusted global brand.

The Lifebuoy range includes two of the top four selling SKUs in the UK's major retailers and the addition of a kitchen towel product will enhance the household product offering for Unilever.

Gareth Jenkins, Chief Executive Officer of Accrol, said:

"Last month, we laid out our strategic plans for the business, which included the expansion of the Group's activities into higher margin, third party licensed brands. That Unilever has chosen Accrol to bring Lifebuoy kitchen towel to market is testament to the capability of our business and our increasingly strong reputation in the market."

Graham Cox, Managing Director of Accrol's Tissue Division, who is leading the development of Accrol's licensed business model, added:

"This agreement with Unilever, our first licensing deal, is a step change for Accrol and continues our progress as a market and industry leader.  The Group has ambition and continues to explore new opportunities, including further licensing deals, to bring high quality products at affordable prices to the UK consumer."

As announced in the Strategic Review Outcomes on 24 January 2023, the Group's licensed business model is expected to generate 10% to 20% of Group revenues in the medium to long-term.

Production of the Lifebuoy kitchen towel product requires no additional capital investment.