Global supplier uses brand power to drive growth post-pandemic.

 

In its latest trading update, leading global supplier ACCO Brands said it is experiencing a return to more normal demand pattern for office supplies in overseas markets, including Australia.

 

ACCO Brands Australia accounted for eight per cent of the company’s 2019 global revenue of nearly US$2 billion.

 

The US-based company reiterated its Q3 outlook from July which forecast a sales decline of between 15 and 20 per cent as the pandemic continues to impact the office supplies market.

 

ACCO confirmed that most of its office employees are continuing to work remotely and its manufacturing plants and distribution centres are open.

 

While the demand for commercial products continues to be soft, there is a strong demand for computer accessories, air purifiers, and other work-from-home products.

 

As part of its presentation, ACCO highlighted the strength of its brand portfolio and its strategy to counteract private label competition.

 

Approximately 75 per cent of the company’s net sales come from brands that occupy the number one or two positions in the select product categories in which it competes.

 

ACCO’s top 12 brands account for US$1.5 billion in sales while its top 10 customers account for 41 per cent of sales.

 

ACCO’s “strategic imperatives” include: