Vetaphone plots its future - online exclusive

Vetaphone has a market share approaching 85 percent in narrow web, and a year-on-year growth rate of nearly 20 percent.

After building up a strong presence in the narrow web market, Vetaphone has its set eyes set on the mid and wide web markets, particularly for plasma treatment, with a technical breakthrough ‘that will significantly change the ground rules in the flexible packaging industry’ close. Vetaphone claims its technology can significantly improve press production speed, and print and lamination quality, at the same time as reducing expensive waste. An exclusive agreement with one of Europe’s top press manufacturers is also close to being .

Back in the narrow web market, the continued growth of digital technology is playing into Vetaphone’s hands. Initially predicted to be the death knell for corona treaters, digital presses have in fact increased sales for Vetaphone, with units being required both before and after printing to permit downstream product enhancement, like cold foiling.

Jan Eisby, whose father founded Vetaphone in 1951 and who now runs the company with his brother Frank, says: ‘This marks a real turnaround for us. In 2000, we knew little about narrow web, which up to that time was largely involved in converting paper-based substrates. 

‘But, with the advent and rapid growth of filmic materials, and the increasing use of in-mold, sleeves and wraparounds, we eased into this market and have built ourselves a strong position.’

Everything was going well until the financial crisis put a temporary brake on events seven years ago, although Eisby is quick to point out that it appeared to affect the narrow web market less severely than other sectors, saying: ‘In 2009 we took a long hard look at the market with a view to plotting a strategy for recovery, and came up with what I called “must win battles”.  These were: change the organization to a project driven one, keep our OEM business and maintain our key account projects.’ 

Since 2009, Vetaphone has recorded unprecedented growth, including being awarded the prestigious Gazelle Prize for Growth from Borsen, the leading daily business newspaper in Denmark.  Criteria to be met include a doubling of turnover over a period of four consecutive years, of which each must have shown a profit of not less than 500,000 DKr (91,700 USD).

In a presentation to his sales team last year, Eisby has set the tone for a more active and positive sales and marketing strategy going forward, including expansion of the company’s agent network, and the conscious attempt to forge closer cooperative partnerships with both OEMs and converters. 

‘We see this as an ongoing project,’ Eisby says. ‘We have made a deliberate effort to reduce the age profile of the whole team, so that, as a company, we can relate more easily to the new generation of management with which we have to deal and negotiate.’

A further eight sales and production staff are to be recruited in 2014, adding to the existing 50 employees. The new personnel are part of an investment program that Vetaphone is embarking upon, which in three phases over the next two years will see a complete refurbishment of the existing building, with increased production facilities, and the construction of a new, adjacent building on land owned by the company. 

This will house sales and admin departments, and also provide more on-site storage facilities. Estimated to cost around two million EUR ( 2.7 million USD) once fully completed, it is the largest investment plan in the company’s history, and is seen as an essential platform for taking the company forward to the next stage of development. 

‘We have taken corona treatment far beyond what was ever envisaged when my father started the company, and with our development of commercially viable EASI-Plasma treatment, we can foresee significant growth opportunities ahead,’ concludes Eisby.

‘We need to build on our list of end users and OEMs, and find projects from our key accounts that challenge us and allow us to develop new products.

‘While European plastics production  has barely recovered to its pre-2007 levels, global production is booming again – we know the volume is there, and plastics for packaging is what Vetaphone is all about.’

There is no doubt that Vetaphone will continue to strengthen its market position, partly through diversification into new markets, and partly through the innovation of new products.  When the planned investment program is completed, it will have the means to the end that Jan Eisby seeks – but I can’t help thinking it will also be the start of the next phase in the history of this dynamic company, which has a high brand image yet retains a low profile.