Christchurch exports jars for world cosmetic firms

Press, 10 December 1983, Page 24

Christchurch exports jars for world cosmetic firms

By

NEVIN TOPP

Cosmetic firms such as Faberge, Revlon, Jovan, Avon, and Ponds, are among the clients of Crown Crystal Glass, of Christchurch.

Although there may be nothing glamorous in the way that Crown Crystal Glass makes tiny glass containers for products such as perfume, nail polish, and eau-de-Cologne — the factory is hot and noisy — the Christchurch company has proved equal to meeting the standards of the big cosmetic firms, plus the competition from overseas manufacturers.

Since 1975, the company has increased its sales in cosmetic glass packaging 300 per cent by an emphasis on exports (45 per cent of the units made are going overseas). Mr Mike Nottingham, the sales manager, says that in 1975 the company decided to concentrate on small, quality containers, and equipment was installed for this purpose. The equipment includes screen-printing on to glass

(badging) and etching in an acid bath, to give bottles a frosty, opaque look. The company analyses the market before bidding, deciding whether to go for price, quality, or service, Mr Nottingham says.

“For instance, there are some cosmetic companies which are mainly concerned with quality, then service, and lastly price, and Crown Crystal Glass responds to this.”

But Crown Crystal Glass also has had the advantage of a product rationalisation with ACI International, Ltd, the big Australian group, which owns 56 per cent of Alex Harvey Industries. The manager of Crown Crystal Glass, Mr Dudley Jamieson, savs that the firm was awake to closer economic relations before the agreement was thought about. The Christchurch company supplies glass cosmetic containers to Australia, without competing against similar products made by ACI. Crown Crystal competes in Australia against imports from France, the United Kingdom, and Italy, but the

short distance to Australia in terms of transport costs is a big advantage for the New Zealand firm.

Crown Crystal imports glassware from Australia, France, and Italy, but not in the same lines that it makes itself.

“If we didn’t do it, someone else would,” says Mr Jamieson.

Another area of product rationalisation is that Crown Crystal’s sister company in Auckland, New Zealand Glass Manufacturers, does not make the same glass container line as the Christchurch firm. The emphasis in Christchurch is on small glassware for cosmetic, pharmaceutical, and food markets, and drinking glasses. An advantage for the Christchurch company has been its ability to do short runs, because of the size of the domestic market.

Mr Jamieson says that the shortest run is 24 hours, but the longer the run the less costly it is for the customer. It generally takes three hours to have the machinery set up for a run.

The Hornby factory works 24 hours a day, 365 days a year, and employs about 400 people. The switch from oil to electricity for all. glass melting and other services, meant that the local content for the production of glass increased to 95 per cent, he

says. Besides competing with other glass manufacturers, Crown Crystal faces competition with other forms of packaging, particulary plastic.

Two of the major changes in packaging have been the move to plastic packaging

for shampoos and large containers of soft drink. Clients move around a lot in trying different styles of packaging, but products have a good image in glass, Mr Jamieson says. At present, Crown Crystal exports glass cosmetic containers to 16 countries, in-

eluding the United States, Japan, Britain, Canada, and West Germany. In some instances, major cosmetic companies use the Christchurch company’s glassware to increase their requirements for proprietary packaging.