A family-owned Manchester business has secured its first export to Australia in 15 years, shipping £130,000 of its bespoke baby products with the financial support of UK Export Finance (UKEF).
The UK and Australia are important economic partners. A new free trade agreement between the two countries would be worth billions of pounds to the UK economy and is close to being signed.
Cosatto is a baby product manufacturer and works with the University of Sussex’s Baby Lab to create colourful and engaging patterns that help young children to develop. It already sells to retailers large and small in the UK, and sales to distributors in countries like Japan account for 15% of its growing export business.
However, when it came to arranging the insurance for a major deal with a distributor in Melbourne, their insurance broker would not cover the risk if the deal fell through. At risk of losing the contract, Cosatto turned to UKEF, the UK’s export credit agency, which was able to step in with its export insurance policy. This enabled the business to export 300 prams, 750 strollers and 200 highchairs to another family-owned business.
Despite COVID-19 adversely affecting some of Cosatto’s largest retail customers, the ingenuity of the business in moving its operations online has allowed it to adapt to a new way of working. It now expects to turn over £14m this year and is talking to the distributor about new product lines.
Andrew Kluge, Chief Executive Officer at Cosatto, said: “We’re incredibly proud of our business and of the way we’ve adapted this past year. Australia is an important market for us, and so was ensuring we could meet demand when the first door opened in years. Our unique products are backed by science, and continue to save the world from boring baby stuff – one happy child at a time.”