Business growth member profile: Fuzzy Brush

Entrepreneur Jim Drew returned to his roots to keep his “chewable toothbrush” business, Fuzzy Brush, cleaning up both at home and abroad. Many people will have seen Fuzzy Brushes – disposable, chewable brushes that do not require toothpaste or water – and its toothy logo when making stops at motorway service stations across the UK, not realising this is a British success story. More than 150,000 units a month are made at the group’s factory in Guildford, Surrey.

Jim has personally pushed sales both in the UK and abroad since starting the business in 1998 and has recently opened a new factory in Consett, Durham, with the initial aim of tripling annual production to half a million Fuzzy Brushes and Fuzzy Rock teeth-cleaning mints every month to meet increasing demand.

Jim, who was trained as a chartered accountant but didn’t qualify, acts as both CEO and CFO.

“I didn’t have the patience to complete three years of training. I felt it was more important to work on my ideas than to sit exams. Our finances are not that complex as we are not a huge conglomerate yet! I can still deal with our finances without the need for a separate CFO,” he says. “But this may change in the future.”

“I’m from the North East and remember running around the Consett countryside as a child. When we began searching for a factory last year, I looked north. One reason was that a packaging company we used near Durham had just gone under, and I wanted to turn that into a positive for the area.

Also, I know the North East people; they are caring and conscientious. If you look after them they will work hard for you,” (see Jim on employees).

Back in the late 1990s, Jim was eating in a pancake restaurant in Amsterdam. “I went to the lavatory and found these chewing toothbrushes in a gumball vending machine,” he says. “I bought one and kept thinking about it for a year. I knew I needed to do something with this great product.”

In 1998, he finally decided to contact the brush’s designer. “He was a Dutch dentist and I explained that with my sales, marketing and creative skills, I could really do something with the product. We negotiated the rights to sell it,” he explains. “When I got home, the name ‘Fuzzy Brush’ just sprang into my head! I then drew Mr Fuzzy – the big-eyed, big smiling little guy we have as our logo. So, in just two minutes we had our brand.”

Fuzzy Brush is described as a “serious and effective” oral hygiene product. “The brushes contain xylitol crystals, a natural sweetener [that is] tooth-friendly because it kills off the bacteria that makes plaque. We educated dentists on the benefits of the brush and soon we had our vending machines in 200 UK dental waiting rooms,” Jim explains.

By 2007, the company had 8,000 vending machines in dentists, service stations, hospitals, the military and 50 corporate contracts. The business then adopted a licensing model, developing a network of global distributors (see Jim on exporting). By the end of 2008, the group had sold over 70 million brushes worldwide – all through vending machines – and was growing at an annual rate of 30%.

“Then the recession hit,” says Jim. “We lost about 3,000 machines because the companies that had installed them, particularly pubs, went out of business. I also had a problem with my bank and credit line. I was losing vending accounts and suppliers across the world.”

“The one thing I’ve never had to do is actually sell the products. I am so busy fielding calls from eager distributors around the world every day. The Union Jack on the front of the packet also helps. The biggest selling point for our products in Asia is that they are made in the UK.

“I’ve recently taken on a distributor in Taiwan who saw our products in Seoul and they thought they were great. So, I sent him some samples and he told me: “We’ve already had a board meeting. We deal with 30,000 outlets and we want to start selling it.” I am looking for guys who think like me – 95% of those who write to me are dreamers with no money or network. You need experience of working with retail to truly understand its nature, dealing with buyers and stock control.

“It’s only 1% who are spot on, but it is only through speaking to the 100% that you find them. We have success abroad because I personally speak to everyone who is interested.

“In each country I look for one distributor. With two or three you get conflicts of interest.

“We talk about pricing, because every economy of scale is different. We look at the cost of goods and retail spending patterns. Then I gauge that price as low as I can, looking at cost and time production. You must fit with their pricing policy, so they can make a percentage. We look at a net profit margin of 40%.

“We have a trademark for the product that we must license in each country. We also must go through FDA approval, which can take time. In Indonesia, it took a year and a half.”

Jim, however, was resilient. “I’m an optimist, so I carried on,” he states. “It was a period – over a few years – of repair, healing and determination to pick ourselves up again. I was running two other firms at the time; I didn’t give Fuzzy my full attention as it was a small ticket item. We repackaged the product and trialed them at the NEC in 2014. We had such positive feedback, I knew we were onto a winner.”

He employed a sales director he met at the show and together they approached UK retailers. “When we got a ‘maybe’, we had to exercise patience and perseverance before getting to the head buyer. When trying to break into supermarkets, we had to redesign the packaging half a dozen times before getting approval.”

This perseverance paid off, with Fuzzy Brush now on sale in Asda, Morrisons, Lloyds pharmacies, The Range, Boots and One Stop. The vending part of the business has also bounced back, with brushes now available in 7,000 vending machines across Britain in airports, Odeon cinemas and motorway service stations.

Jim then turned his attention to international retail growth, once again through a licensing and distribution model. “I sent packs to a South Korean distributor I know. He started selling to retailers there and had success,” he explains.

“We then sent packs off to Germany, Spain, China and Japan. I am always happy to take a punt and go with my gut feeling. We were attempting to germinate growth in different markets, and South Korea really took off – we always use local talent. We were greatly helped by a cultural love of mints, particularly lemon flavour, and a Korean government dental health drive based around xylitol.”

As the international business developed, Jim continued innovating. “We took the xylitol crystals, melted them down in tanks and created little slabs of rock,” he explains. “You manually break up these slabs after they have cooled, and you have mints which are actually good for your teeth. We called them “Fuzzy Rock” – sticking to our brand name – and have now developed flavouring such as Crystal Coolmint, Lemon and Extra Strong Mint.”

The use of xylitol, which is sourced from Finland, has its challenges. “It is a great substance, sweet tasting with a lot fewer calories than sugar, but it’s about 20 times more expensive,” says Jim.

This time last year, 10,000 packs of Fuzzy Rock and Fuzzy Brush a month were sold in South Korea. Now, the figure is up to 140,000, and the packs are stocked in over 20,000 retail stores in the country, including Costco.

“More retailers are ending their trials and taking our products on board. They come to us because we are unique, the sole manufacturer,” Jim states. “But our sales are increasing so much throughout Asia that I am struggling to keep up.

“I could run a very comfortable lifestyle on the South Korean business alone. We’ve got six product lines there now, and retailers are asking us to make different flavours.

“We are getting enquiries from American retailers, but there is no way we could cope with the required production output,” says Jim. “The focus is South Korea, Singapore and Taiwan. I am dealing with what I have rather than what I would like to have. If I did have a factory to cope with all the demand, it would have to be the size of a football field!”

Or an aircraft hangar, perhaps. Presently, Fuzzy is talking to Russian airline supplier, Aeromar, about supplying packs. It is also holding talks with UK airlines. “They are substantial. We are talking millions of brushes needed for these,” Jim smiles. “The only issue with airlines is that they want a 75% margin. Ridiculous, but it is how they operate.”

"A company can have an excellent product, but it’s only as good as the people who work there. You must look after them. Paying a good wage is part of it, but it’s also appreciation. Even just a few kind words generate loyalty and that’s what helps drives business productivity growth.

“We’ve created a new snack-like vending machine called the Teeth Cleaning Station, selling our brushes and mints aimed at those with autism. There are 200 special needs schools in the UK and I’m going to put a machine in every single one. We can take this global. I get letters from parents saying their child hasn’t brushed their teeth in 10 years, but now their teeth are clean."

This demand brings us back to the new factory in Durham. Alongside the emotional reasons outlined earlier, the move also bolstered Fuzzy’s balance sheet.

“In Durham, rates and rent are a third cheaper than in London. It made commercial sense to have the packing and production done under one roof as it saves thousands of pounds a month on transporting the product abroad,” he says.

The new 2,500 sq ft factory unit, built at a cost of £60,000, has a production area, two package areas, pallet storage and will create up to 50 packaging and production jobs.

The company has invested in equipment to break up the xylitol slabs, which allows for a tenfold increase in production speeds, and is recruiting from the local council and job centres to find workers.

“It’s not an easy product to make. We need to transfer our production knowledge to Durham and carry out some training,” Jim explains.

“The Brexit vote did affect my business,” says Jim. “But only because of the fall in sterling that resulted from the vote. It meant my distributors could spend more to promote the product. We should look at the great opportunities from this – we don’t need pessimists in business.”

Already, he sees the new factory as being a template for further expansion. “We’ll see how much this factory costs, how much we produce and how that fits with demand,” Jim says. “But already, I feel that we will need to get another factory, perhaps even before the end of the year.” That’s because global retail demand appears to have no ceiling.

Part of the financial structure is a new investment programme for retail investors. It raised £500,000 in finance from the sale of 700,000 redeemable shares. “We’ve had this programme since 2016 and we pay our investors a percentage of our profits,” he explains. “The first round of money we used to buy stock and help our manufacturing expansion. We are now looking at the Enterprise Investment Scheme to raise more funding.”

On the company’s LinkedIn page, there is a declaration that it will look to float on the Alternative Investment Market (AIM) in 2020. But Jim plays this down.

“It is possible, but to get on you are talking about £400,000 spend and taking six months out of your life,” he says. “I could spend that time and money on developing the company. I’m not looking at a float at the moment.”

“Everybody has a great idea. But there is a world of difference between having that and being successful,” Jim says. “It takes years of dedication and most people fall away. You must see it through and push products forward. I have more than enough work to keep me going for the rest of my life, my son’s life – and my great grandson’s life".

• Business growth member profile: Fuzzy Brush
  Business & Management Magazine, March 2018, p.16-19

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