Can you shed some light on the history and origin story of Toly?
AG: Toly is distinct as it's a privately-owned family business, or as I like to describe, a family in business. The foundation was laid by my father who hailed from Eastern Europe and had a dramatic escape during the Hungarian Revolution in 1956. Making his way to the UK, he capitalized on the budding plastics industry of the 1950s. Initially, he worked in the toy industry, but by the mid-1960s, he ventured into the beauty sector, kickstarting with a compact. Today, Toly has diversified immensely and provides packaging solutions across various segments of the beauty industry, from compacts for makeup products to airless technology for skincare and even custom fragrance packaging.
In terms of geographical growth, while my father had a factory in London in the late 1950s, he soon realized the constraints of urban manufacturing. This led to the exploration of other locations like Northern Ireland and Wales. Eventually, after gaining insights about Malta's promising manufacturing environment, he set up a factory there. Over time, Malta transitioned into being the primary base for Toly, housing our chief officers. While we started as a primarily English company, my vision was to internationalize. We expanded our reach, opening offices in the US, Paris, and other global locations. This expansion, combined with our pioneering efforts in UV lacquer, accelerated our growth. Even after the unfortunate passing of my father in 1991, Toly continued its upward trajectory. Today, we remain unique as a privately-owned entity, with family members contributing from different parts of the world.
How have you evolved to cater to emerging indie and influencer brands?
AG: The evolution of Toly has been constant. In the 1970s, we identified primarily as an engineering company, focusing on building and converting plastics. This identity shifted in the 1990s, where we saw ourselves as a comprehensive packaging supplier to the beauty industry. Fast forward to recent years, and we've morphed into a solutions provider with a 360-degree view of the business. Our Innovation Centre in Malta encapsulates this transformation. It's a hub of creativity, from designing branding for clients to researching new sustainable materials. Moreover, our vision for Toly is to evolve into a global beauty product development platform, akin to platforms like Uber and Airbnb in their respective industries. We aim to connect global beauty brands with a plethora of products, services, and manufacturing capabilities. This is especially relevant in today's post-COVID world, where brands seek local solutions for manufacturing. Additionally, we've anticipated a shift from traditional plastics and are already exploring other materials like glass, metal, and paper. Lastly, our emphasis on innovation, especially concerning application, dispensing, and sustainability, remains paramount. Our unique Innovation Centre sets us apart, focusing on understanding consumer frustrations and creating solutions accordingly.
Are you more reactive to what consumers desire, or do you proactively propose solutions to your clients?
DB: We prioritize understanding the consumer. This understanding enables us to act as consultants to brands, creating products based on genuine market needs. Our approach originates from listening to consumers, gauging their priorities, and subsequently innovating. When we present to brands, we're not just showcasing a product but offering a solution based on actual needs. This understanding, combined with our usage of various media platforms, allows us to gather feedback from both our brands and the end consumers.
How do you drive innovation and differentiation in your company?
AG: Every year, we establish a theme to align our global teams. Last year's theme was "be different, think different for a sustainable future." Inspired by Michael Porter's perspective on competing to be unique and different, we constantly challenge ourselves to be innovative. This is evident in our global offices, from Korea to Hong Kong, where our teams are eager to showcase new ideas. Annually, we create 200 packaging concepts across categories, which have been displayed over the past 15 years in our Innovation Centre in Malta. It's exciting to see concepts we developed years ago now entering the market, reaffirming our pioneering position.
How do you see sustainability impacting the packaging industry, especially in light of new regulations?
AG: Sustainability has been a buzzword for years, but many brands have struggled to truly grasp its implications. I've encountered various brands with different sustainability goals – from refillable packaging to recyclable materials. But a significant change is on the horizon with the forthcoming PPWR (plastic packaging waste regulations) by the European Union. This regulation mandates the use of only three recyclable plastics: polypropylene, polyethylene, and PET, which haven't been popular in makeup packaging for decades. It means brands need to undergo massive overhauls to meet these standards by 2030. The challenge lies in preserving brand identity while complying with the legislation. However, it also presents an immense opportunity, as every package must evolve.
Our focus is on innovative solutions, like monomaterial pumps and pallets without magnets, that align with these regulations. Beyond plastics, there's a push towards carbon neutrality by 2050, which further complicates matters as brands weigh the environmental impacts of packaging choices, like glass versus plastic, and consider localizing production to minimize transportation emissions.
What are the key challenges you're currently facing?
AG: While the sustainability transition is significant, another pressing concern is credit risk. Post-COVID, the market saw a recovery, but rising interest rates have heightened the risk for many brands. This year, two of our major US clients declared bankruptcy. Balancing opportunities with credit risks, especially when dealing with emerging brands that lack financial history, is a significant challenge. It's this credit risk management that often keeps me awake at night, even more than the sustainability hurdles.
What drives your company's passion and vision in assisting leading brands with their product launches?
DB: Our primary excitement stems from our mission to collaborate with the world's top brands, facilitating the launch of innovative products tailored to their specific needs. A defining characteristic of our company is our unwavering commitment to delivering top-tier service daily. We view our brands' successes as our own. Given our roots as a family business, we genuinely believe that the brands we work with become an extension of our family.
Could you elaborate on your company's core values and how they align with your overarching goals and campaigns?
DB: At the heart of our enterprise are core values of people, pride, passion, and creativity. We aim for these values to be palpable in every interaction with our brand, "Toly." Our primary objective is to leave a lasting positive imprint on everyone we encounter. This is evident in our various campaigns, such as the breast cancer awareness initiative. Beyond merely fundraising, our goal is to heighten awareness. Ultimately, our aspiration is to align all our employees worldwide under the banner of "doing our best every day." By doing so, we aim to foster lifelong relationships with our customers, as demonstrated by our extensive history of sustained partnerships since the 1970s.
Are there any forthcoming product launches or milestones that you're particularly enthusiastic about?
AG: Indeed, while I can't divulge all our upcoming ventures due to non-disclosure agreements, I can share that brands consistently approach us, reflecting our strong industry reputation. Just this week, Estee Lauder launched their "Futurist" product, featuring one of our innovative bubble applicators. Additionally, we've recently partnered with a budding brand targeted towards teenagers, providing almost all of their packaging. Moreover, we've introduced the "Lyma skincare" line, one of the world's premium skincare packages. Aside from these launches, we're also gearing up for two major shows in the upcoming months, showcasing groundbreaking innovations. And for an immersive experience, we extend an invitation to our Malta-based innovation center, which promises to be an enlightening experience.
