Sussex launches $10 million expansion to keep up with growing Mr Lid brand

Injection molder Sussex IM Inc. is spending $10 million to keep up with growing demand for proprietary storage containers and custom molded products.

Sussex IM plans to build a second facility in Sussex, Wis., which will house expanded shipping and manufacturing operations, said the firm's CEO, Keith Everson. The molder will break ground on the new plant in July and finish construction in the first quarter of 2017, he said in a phone interview.

“Three months ago we went to 24/7 manufacturing and now we need more space,” Everson said. The investment includes construction of an 87,000-square-foot building, additional molding machinery and equipment and systems to boost order fulfilment and storage.

Everson said Sussex IM will buy new injection presses with clamping forces ranging from 150 to 900 tons. The expansion will be financed through an Industrial Revenue Bond issue.

Sussex IM custom molds components for diverse industries, including cosmetics, medical and sporting goods. Its top proprietary product line is Mr. Lid storage containers featuring lids permanently fixed to the storage box through a “living hinge.”

Sussex IM has launched a major marketing campaign on the internet for the Mr. Lid products. It will showcase the premium storage containers on Scripps Networks Interactive, a leading developer of on-line popular lifestyle content. Its food lifestyle platform includes FoodNetwork.com, CookingChannelTV.com and Food.com. The Scripps food sites get more than 46 million visits from U.S. consumers a month.

“The Mr. Lid story aligns perfectly with SNI's lifestyle brands, which reach our target consumers — women 25 to 54 [years of age] — every day,” explained Bobby Dodd, president and chief marketing officer for the recently formed Sussex Brands division.

Dodd said in a phone interview that the digital thrust will create broader awareness of Mr. Lid and help Sussex IM expand its presence in retail stores. Until recently, the living hinge and other features of the Mr. Lid line were highlighted in infomercials and other conventional marketing media. Early exposure fuelled sales of more than 20 million units of the polypropylene containers, but Sussex IM expects the digital push will boost sales.

Expanded molding operations and storage space will accommodate Mr. Lid's growing sales, according to Dodd. The company expects its current footprint in retail space will grow significantly to include Wal-Mart Stores Inc. later this year.

Sussex IM touts the living hinge feature of its premium storage containers. The patented products include containers with attached lids that are colored while the storage box remains transparent. Everson said his firm has a lot of experience in coinjection that it applies to Mr. Lid and other molding programs. The company was previously owned by Rexam plc and learned a lot about living hinges for cosmetic caps and closures.

Dodd said Sussex IM is highly automated to help it compete in the crowded storage container market. Mr. Lid is marketed as a premium product that is priced lower than premium brands such as Rubbermaid and Tupperware. The product line's motto, “You never lose the lid,” is stressed in the company's sales campaigns. The average household already has about 50 storage containers but Sussex IM executives think there is room for more when the containers boast a permanently attached lid and a made-in-U.S. provenance.

Sussex IM developed the Mr. Lid line soon after Everson and two other company executives bought the business from Rexam in 2010. It has grown to sales of more than $65 million per year.