Apollo Healthcare (TSX:AHC) is one of the largest private label personal care product manufacturers in North America, developing and manufacturing retailer-branded and private label products for major North American retailers. Apollo’s products are sold in tens of thousands of stores across North America. The company’s customer base spans major North American grocery, drug, and mass merchandise retailers, as well as wholesale clubs.
The company was founded in 1993 with one manufacturing facility located in Toronto, Ontario, and began operations as a producer and seller of private label personal care products in Canada. Apollo has since expanded to the United States and Mexico private label market by supplying major retailers’ needs for private label personal care. Apollo currently operates a centralized design and manufacturing facility in Toronto that’s capable of manufacturing stock-keeping units in nearly any liquid product category.
Diverse products
Products that Apollo manufactures include over 16 product lines, each of which falls into five main product categories including body wash, soap, sanitizer and cleansers, hair care, and skincare. Similar to Unilever (NYSE:UL), Apollo’s products are backed by advanced formulations and constant evaluation of performance in order to ensure high quality and consumer value.
Apollo is well positioned within the personal care marketplace, enjoying several competitive advantages. The company is widely regarded by customers as having industry-leading research and development capabilities, having compiled a strong catalogue of independently tested private label products that directly compete with most major national brands or forge new and innovative formulations into successful products on the market. Consultation and ongoing collaboration with suppliers and industry experts provide insights and access to new, advanced formulations and technologies.
Advanced manufacturing facility
Apollo’s manufacturing competency is an integral component in consistently providing high-quality products at competitive prices. Apollo’s facility employs advanced technology and processes that allow Apollo to be energy efficient and cost-effective.
Apollo’s client list is composed of a mass merchant, food, drug, and specialty retailers in North America. Apollo offers comprehensive private label programs through active collaboration with retailers.
Strategic location
The strategic location of Apollo’s facility creates logistical efficiencies. Key input and raw material suppliers are located in close proximity to Apollo’s facility. A dedicated rail spur provides Apollo with increased freight flexibility on demand.
Economies of scale allow Apollo to enjoy relationships with major suppliers which has resulted in cost savings. Also, Apollo’s product development cycle can be completed significantly faster than the company’s national brand competitors. Rather than focusing solely on contract manufacturing, Apollo’s vertically integrated private label programs include product formulation, label and packaging design, proactive category insights, and demand forecasting. Apollo partners and collaborates with major retailers and to create tailored private label product offerings for consumers.
Strong track record
Further, Apollo has garnered a strong track record for fostering product innovation through the company’s internal capabilities. It has successfully developed thousands of formulations within the company’s product portfolio across multiple product categories and product types.
Apollo continually improves the company’s robust manufacturing practices and employs a team of dedicated quality assurance and quality control specialists. These improvements should serve long-term shareholders well.
