Private Label Manufacturing

Kedo Eurocosmetics Kft. was one of the first domestic manufacturers specialized in providing manufacturing capacities for medium-series fine cosmetic products.

We commenced the manufacturing of cosmetic products in 1982, as one of the first firms to do so alongside the major brands known in Hungary at the time – Caloa, Hélia-D and Fabulon. Our firm has been functioning with the current ownership structure since 2001, primarily with the goal of operating a plant with the size that makes it capable of servicing medium-size production series in the field of specialized, fine cosmetic products – gels, creams, creamy shower gels and detergents.

Currently, there are over 100 cosmetic manufacturing firms registered in Hungary, many of which are merely laboratory-size businesses which have few machines and an infrastructure which only allows for the production of small amounts of products. There are only 4-5 truly mid-size manufacturing firms, despite the great demand. Brand owners unable to realize volumes in tens of thousands through multinational retail chains, yet who wish to sell their products on the domestic and foreign markets, are seeking for plants of this size for toll manufacturing purposes. Our firm produces both self-made products and self-branded products for other firms. Private label manufacturing represents the greatest part of our activities, whilst the ratio of self-manufactured products represents 10-15% of the annual manufactured output. This ratio allows for providing a suitable degree of stability for the firm’s operation, as 2-3 new private label series are launched every year, whilst the same number of series is discontinued. We are present on the domestic and neighboring, Eastern European market with two self-madeproduct range ranges – with the brand names of Petra and Cosmedic – which are realized through reference retail units, online and through wholesale distributors.

The plant established in Péteri in 2011 was mainly created for the purpose of toll manufacturing, where medium-size series are produced for client brand owners. We are currently manufacturing 20-25 private label series, where the individual series represent separate brand owners.

Both the limited absorption capacity of the domestic consumer market and the changes that took place through the ascension to the EU made it necessary for us to seek out new markets. The market expansion strategy defined in 2004 was fulfilled by 2008. In this year, the sales of both self-owned and private label products was launched in the neighboring countries as well as in Sweden, Germany, France and Spain and the products we manufactured even made their way to the USA, Vietnam and Australia.

Whilst the realization of products in Romania and Slovakia could not take place prior to the EU ascension, following this milestone, the elimination of administrative and physical borders made these countries natural market outlets which now realize turnover on the same level as Hungary. Our competitiveness is not merely manifested in the fact that we envisioned a medium-size series plant upon the foundation of the firm, but also that from the very beginning, we placed a great deal of emphasis on the manufacturing of plant-based cosmetics. The water used for the products – which accounts for the greatest share of the ingredients – and the quality of the raw materials are such that the products only require a lower amount of preservatives. We now have a technological background which allows us to avoid the use of chemical conservation agents in the case of many of our products. This is of great significance as these products produce no allergic reaction and are suitable for consumers who cannot purchase expensive products distributed in pharmacies.

The site in Péteri features a level of machinery which allows for the economic production of 200 to 50,000-size series, where the series volume naturally depends on the packaging of the end product. The wide range of products produced at the plant consists of a combination of hundreds of ingredients and packaging options.

The plant produces an average of 10-15 tons of cosmetics per month (150-200 tons annually), 70% of which is water, with 30-50 tons of active and base agents.

The monitoring of the products is ensured, as the plant features an ISO9001 and ISO22716 (cosmetic GMP) quality management system as well as NATURE and ECOCERT certifications for the manufacturing of natural cosmetics.

The packaging is assisted by 4 semi-automaticfeeding machines, an automatic tube filling machine and 4 different labeling machines. All manufactured items undergo quality inspection.