International brand packaging consultancy LFH says a detailed study of clients using its patented Chapter 1 printing innovation shows visible savings of €700-€6,000 per client brand SKU have been achieved. Global brand owners that typically have 25,000 plus brand SKUs could make annual savings of between €17.5 million and €150 million, the company claims.
Chapter 1 reduces the number of ink colours used in packaging to just six, ‘without any visible difference in quality’, allowing for economies of scale cost savings to be achieved at the press. The greatest savings are said to be achieved by broader ranges of brands using a similar print process and substrate.
Mano Manoharan, ioint managing director of LFH, explains: “When you apply this level of savings to the P/E ratios of the typical companies we are now advising, which range from 15 to 24 – you can see that Chapter1 can potentially add shareholder value of €260 million - €3.6billion.
“In the current economic climate, brands are having to work harder and smarter to maintain profitability. Our system is tailored for each individual client, and also offers significant environmental benefits.”
