Strolling into Australia: Manchester baby business secures major export contract
Export Insurance Policy helps UK baby products manufacturer secure export contract to Australia.
- Cosatto, a bespoke baby product manufacturer, exports to Australia for first time in over a decade as a trade deal nears
- Government support helped them secure a £130,000 order for over 1,000 prams, strollers and highchairs
- The Manchester-based business now expects to turn over £14 million this year, with more exports across the world made easier thanks to Free Trade Agreements
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 an award-winning 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 £14 million this year and is talking to the distributor about new product lines.
Graham Stuart MP, Minister for Exports, said:
This is a prime example of how innovative British brands have the potential to go global with the right support. Exporting companies like Cosatto are more productive, create more jobs and pay higher wages, which is why we are radically changing how exporters access the government finance they need to sell to the world, allowing them to take full advantage of upcoming trade deals with countries like Australia.
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.
Steve Cowles, UKEF Export Finance Manager for North West England, said:
We are here to ensure businesses in the North of England have the funding and support they need to win contracts, fulfil orders and get paid. Cosatto is a strong family business that has managed to crack a competitive market, and this demonstrates the huge potential that lies in trading overseas.
Background
About UK Export Finance
UK Export Finance is the UK’s export credit agency. It exists to ensure that no viable UK export lacks for finance or insurance from the private market, providing finance and insurance to help exporters win, fulfil and get paid for export contracts.
Media enquiries: Andy Aston, Head of News and Corporate Communications
Email Andy.Aston@ukexportfinance.gov.uk
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