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Unfolding the future via innovation and expansion

In the ever-evolving landscape of packaging, Shave & Gibson (S&G) has carved out a notable presence as one of South Africa’s largest privately-owned manufacturers of folding carton board packaging. With roots tracing back to its establishment in 1981, the company has demonstrated a relentless commitment to innovation, quality and growth. We delve into the company’s remarkable journey, highlighting its strategic expansions and future prospects.

15 July 2024
in Acquisitions & evolutions
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03 S&G FrontCoverED

Founded with a vision to revolutionise the packaging industry, Shave & Gibson has grown from a modest operation into a powerhouse in the South African market. 

Under the astute leadership of its management team, including Richard Downes, the managing director of the company’s packaging division, S&G has built a reputation for delivering high-quality packaging solutions across diverse sectors. To date, the company’s product portfolio spans folding carton packaging, paper bags, security printing, and now point-of-sale displays, catering to industries ranging from retail to pharmaceuticals.

01 S&G FrontCover

Expanding horizons: paper bag

One of the most significant milestones in S&G’s recent history is the expansion of its paper bag business. In 2021, S&G acquired the complete paper bag and wrap business from Counterpoint, having been a majority shareholder since 2019. This acquisition was more than a mere business transaction, it marked the beginning of a transformative journey for the company.

‘The growth in our paper bag business is a key area that we’re focusing on,’ comments Richard. ‘Since the acquisition, we’ve moved the entire factory from Hammarsdale to Mobeni, incorporating over 40 staff members into our team and adding new machinery to ramp up production.’ The staff complement has now grown to more than 100 for S&G’s bags division.

This strategic move not only consolidated S&G’s operations but also created a synergy between the folding carton and paper bag divisions, despite the inherent differences in their manufacturing processes. ‘It’s about having the folding carton business and paper bag business working together under one roof. It’s not easy, but the potential for complementing each other is immense,’ he explains.

The push towards paper bags aligns with global trends favouring sustainable packaging solutions. S&G sees significant growth opportunities in the retail and e-commerce sectors, driven by major retailers and the increasing demand for eco-friendly alternatives. ‘The initial mindset was to move away from plastic bags and drive more towards paper bags,’ notes S&G’s innovations manager Michael Downes, citing the rising use of paper bags in e-commerce and retail spaces.

Reinventing the retail experience

A current pivotal expansion for S&G is its foray into the point-of-sale (POS) and corrugated pop-up display business. This was catalysed by the acquisition of Barrows Media’s corrugated division. Barrows, known for creating immersive retail experiences, has entrusted S&G with the manufacturing side of its corrugated displays.

‘There’s a lot of potential growth and future prospects in the point-of-sale market in South Africa,’ Michael says. ‘We’re going to try and incorporate our expertise to really grow the pop-up display and in-store promotional experience for brands and retailers.’

This acquisition isn’t just about machinery and facilities, it’s about creating a seamless integration of processes to optimise production. ‘The shorter runs are geared for high-value, multiple-component promotional materials, while high-volume orders can be efficiently managed by our folding carton division,’ Michael elaborates. This dual capability ensures that S&G can cater to both bespoke promotional campaigns and large-scale packaging needs.

The relationship between S&G’s and Barrows has been cultivated over decades, beginning with personal connections between S&G group chairman Simon Downes and Barrows partners Richard Barrow and Derek Woodhouse. This bond has been further strengthened through years of collaboration between the two companies. Historically, S&G has refrained from entering the POS market because Barrows has excellently served this sector. Now, as Barrows shifts its focus globally to the more sophisticated digital market, a new opportunity arises that benefits both parties. Barrows and S&G will continue their partnership to ensure the ongoing success of this venture for the foreseeable future. 

02 S&G FrontCover

Securing the future

In a world where counterfeiting poses a growing threat to brands and consumers, S&G’s focus on security printing is both timely and strategic. The company is leveraging its expertise in this area to explore new avenues, particularly in pharmaceutical packaging.

‘Our current focus is to grow our presence in the high-security areas of passport and visa printing, as well as in the pharmaceutical industry, specifically for package insert leaflets (PIs),’ states Grant Hubbard, security printing general manager at S&G. The pharmaceutical industry, with its stringent requirements for authenticity and safety, presents a significant opportunity. S&G aims to incorporate security features into packaging to protect against counterfeit products, thereby safeguarding brands and consumers.

Grant highlights the potential for growth in this sector: ‘With the rise in pharmaceutical demand post-Covid-19, the need for anti-counterfeit measures is more critical than ever. We’re looking at various security elements, from watermarks to advanced printing techniques, to meet this need.’ Grant emphasises the need to explore new technologies and innovations, stating: ‘Our upcoming projects include integrating secure codes and potentially even biometric data into printed documents. This will enable us to offer comprehensive ‘smart’ document verification services and advanced anti-counterfeiting solutions to our customers.’ 

Continued growth

S&G is on the move! They’ve acquired a new warehouse complex within a three-minute drive from their consolidated factory in South Coast Road, Mobeni. Currently tenanted, the premises in Lerwick Road require significant alterations and modifications, and S&G plan to relocate there in early 2025. ‘We have sold our multi-storey Blokhaus warehouse facility, and the new warehouse will incorporate our corrugated operations, offering significant economies and efficiencies. This move will also future-proof our storage capacity into the 2030s,’ says S&G’s group chairman Simon Downes. 

This is an exciting development, especially given the severe shortage of warehousing space in the eThekwini industrial basin – a situation likely to worsen as the Durban port regains efficiency and increases its container throughput.

According to Simon, S&G is currently in the process of installing a new Roland six-colour press. ‘This will significantly bolster printing firepower for our carton division, and underscore our commitment to delivering high-quality, efficient printing solutions for our customers.’ 

Adapting to market changes

The packaging industry is dynamic, influenced by evolving consumer preferences, regulatory shifts, and technological advancements. ‘Our proactive approach to these changes has been critical,’ emphasises Simon. ‘By staying ahead of trends and continuously investing in new capabilities, we ensure that we meet and exceed the expectations of our diverse customer base. Our ability to adapt and innovate has been pivotal in maintaining our leadership position in the industry. Most importantly, we’re committed to an ethical and value-based business approach in our interactions with suppliers, customers, employees and all other stakeholders.’ 

Diversifying the portfolio

S&G’s diverse product offering is a testament to its adaptability and market insight. From general foods and agriculture to beauty care and industrial packaging, the company has established itself as a versatile player in the packaging industry. This diversity is not just about having a wide range of products, it’s about being able to meet the specific needs of each sector with tailored solutions.

‘We want to show people that we don’t just focus on one area. We have a broad range of packaging solutions under one roof, all within our state-of-the-art facility,’ remarks Simon. This integrated approach allows S&G to provide comprehensive packaging solutions, ensuring that customers receive the best possible service and quality.

Shave & Gibson’s journey is a narrative of strategic growth, innovation and a relentless pursuit of excellence. From expanding its paper bag and POS divisions to pioneering in security printing, the company is not just keeping pace with industry trends but setting them. As Simon succinctly puts it: ‘We’re excited for the future, confident in our diverse capabilities and committed to delivering unparalleled value to our customers.’ In an industry where adaptability and innovation are key, S&G stands out as a beacon of progress and potential.

Our ability to adapt and innovate has been pivotal in maintaining our leadership position in the industry.”

Click here to read this article in the E-mag
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