Cosi gears up for further global growth

The UK-based company, which also develops colour cosmetics and toiletries, said that it had completed a refinancing plan last week that releases new funds for the working capital needs of the business as well as for investment in strategic initiatives.

The company added that it has secured asset based lending facilities from Venture Structured Finance as part of the new debt package, replacing Barclays Bank, which had previously provided similar services.

However, the company stressed that Barclays Ventures remained a major share holder in the company, and that in turns ut continues to support the company's position.

Speaking about the move , COSi's Chief Finance Officer, Alison Henriksen, said, "As a manufacturer, asset based lending has proved to be a very attractive option".​

Cosi makes finished products for major global players from its plants in Wales and West Sussex. The company claims that despite tough international trading conditions in 2005, it has outperformed many of its UK competitors through efficient manufacturing techniques and an aggressive programme of sales expansion into Europe and the US.

As part of this expansion sales offices were established in key target market, including mainland Europe, China and the US in the first quarter of last year.

Cosi's CEO Bob Tolan said, "The refinancing enables us to move forward with the strategic initiatives that will accelerate the growth of Cosi. We are well prepared and extremely focused on our strategy to achieve a leadership position worldwide.​

"Our next step is to move forward with plans to establish operations around the world in regions where our customers most need our services. I have no doubt that COSi will be successful in our quest to become the best in our industry,"​ he added.

In recent years Cosi has evolved from being a research and development player by extending its capabilities into the contract manufacturing arena, an area that the company considers holds plenty of scope for the future expansion of the company.

Speaking at last September's Cosmeeting in Paris, Cosi's head of communications, Tracey Elms, told CosmeticsDesign-Europe.com​ of how the company has evolved off the back of the increasing demand to outsource all aspects of cosmetics production.

"Two years ago P&G said that they would never be interested in outsourcing the production of its cosmetics products, now they are rapidly evolving as one of your major customers as their decision makers realise the benefits our services can bring,"​ said Elms.

"On the back of this kind of success Cosi has now evolved into a business that can provide a complete service for the development of products; from the sourcing of ingredients, through to testing and even branding. Looking at the evolution of the market place in recent years, this appears to be the future of the industry."​