Apr 26, 2022Fast-growing Brazilian company Beontag RFID, formerly known as CCRR, has acquired wireless identification company Confidex and has moved its headquarters to Italy as part of its globalization and growth strategy. With the acquisition, along with nine others throughout the past 15 months, Beontag intends to become one of the largest RFID tag and label manufacturers worldwide.
The purchase of Confidex will enable Beontag to sell more industrial-grade RFID, Near Field Communication (NFC) and Bluetooth Low Energy (BLE) products, as well as NFC contactless ticketing for transportation. As for Confidex, the company will gain access to more global manufacturing sites, enabling it to further serve its customers in Europe, North America and Latin America. Confidex will continue to operate its headquarters in Tampere, Finland, its R&D Center of Excellence, and its offices in France, the Netherlands, the United States and Asia.
Beontag sees a rising demand for RFID technology across numerous markets. The company is driven by a digital transformation underway by industrial companies, as well as the retail market and supply chains, according to Marcio Muniz, the VP of Beontag RFID's Digital Transformation business division. As it has been increasing production capacity and acquiring companies in Europe, Brazil, Asia and the United States, CCRR renamed itself early this year to Beontag RFID.
Growing Business for Label Products
Marcio Muniz
The business originated as a 2011 merger between self-adhesive company Colacril and RR Etiquetas, a converter of self-adhesive labels for the retail industry. The firm became part of a private equity fund the same year. In 2012, Muniz says, it began producing label products that include RFID technology, then grew rapidly in Brazil. Growth has been so strong, he reports, that the company has been "always against capacity" since 2018. Beontag has since acquired more label production machines, and it has expanded its factory in 2019.
Beontag has two primary business sectors. One is global label materials, such as the self-adhesive labels used in a variety of packaging, while the other is digital transformation enablers centered around RFID-, NFC- and BLE-based intelligent labelling. Its first RFID-based acquisition involved a tolling RFID technology company in Brazil, after which it acquired the RFID label business from French firm Mojix. Other acquisitions included Italy's LabID as well as Temera, an Internet of Things solution provider in the retail market. Beontag also acquired Swedish label and materials manufacturer Scandstick Group, and the R&D unit of Stora Enso, responsible for the development and patent of the Ecotag.
The company's name, Beontag RFID, was established in September 2021. The business is growing around three major goals, Muniz reports: a global reach, a wide portfolio of products and greater sustainability. When it comes to geographic growth, the company aims to provide products to customers around the world. Therefore, it has increased its presence in Asia, Europe and the Americas.
Expanding in RFID Ticketing
With regard to RFID solutions and the demand for RFID-enabled tags, Muniz says, "We understand that RFID is a global value chain." Thus, the need for labels is coming from all continents. The second goal is to establish a wide portfolio to serve the diverse needs for labels and for RFID, NFC and BLE products.
Beontag already serves the ticketing, luxury retail and toll-collection markets, and with the Confidex acquisition its offerings will now include more ticketing products, along with UHF, NFC and BLE tags, labels and beacons for industrial applications, including on-metal tags. With the latest acquisition, he says, "We have a good range of products to offer the market." A third market strategy, Muniz explains, is to provide sustainable products, including tags with more environmentally friendly materials. That strategy coincides with that of Confidex, he says, which is developing tags offering a reduced environmental impact.
Beontag has a label production capacity of 2.3 billion units, with the inclusion of Confidex's production site in China. The company is acquiring more label production equipment and expects to have twice that capacity (about five billion units annually) by 2023. While IC shortages have impacted Beontag, as they have other label makers, Muniz predicts the industry will see a vast improvement in supply in 2023. "That's why we're creating the capacity for next year," he states.
For Confidex, the acquisition provides opportunities for growth and more development, says Timo Lindstrom, the company's CEO. Confidex had been on the lookout for a long-term investor shareholder that could bring financial support for new development, Lindstrom says, and that could provide strategic benefits. Because Confidex's only manufacturing site is in China, its leadership was attracted to Beontag's capacity to build products in Europe and the Americas. With the current challenges involving international logistics costs, tariffs and supply chain shortages, he says, "Having multiple manufacturing sites will enable us to meet customer orders more quickly." That, he adds, means "shorter delivery times and better service levels."
Building on Confidex's Expertise
Confidex's business is divided into two main markets. The first is public transportation. Its NFC-enabled tickets are being used for transportation access in 120 cities throughout Europe, the Middle East and the United States. The other side of the business centers around industrial UHF RFID and NFC products, including on-metal labels and specialty labels for automotive manufacturing, logistics and other industries. The company also develops and sells BLE beacons.
Timo Lindstrom
Confidex will continue as an independent business, Lindstrom says. "We have our products, we have our customers [and] we have our organization," he states, "which we will continue as they are today." However, he notes, the firm can now take advantage of an industrial, strategic shareholder. This will be mutually beneficial, he says, adding, "We can continue to develop our products and processes and learn from each other." That will include developing tags, as well as focusing on reducing the ecological impact of RFID products and business processes using them.
Confidex employs approximately 200 staff members globally, including in-house research and development, engineering and manufacturing teams. The acquisitions and growth on the part of Beontag will benefit the RFID market as a whole, Muniz predicts, by providing a global RFID technology company to bring competition and innovation into what is a small set of such global providers.
For Confidex and Beontag, there is an alignment to serve a changing RFID market. "We share Beontag's vision and growth strategy," Lindstrom states. "We want to be in the top tier-one players in the industry." But it's not just about the size of the company or the volume of sales, he maintains. "I want to see us [Beontag] as the most admired wireless identification company in the market."
Key Takeaways:
- Beontag's latest acquisition is aimed at further expansion into ticketing, as well as manufacturing RFID tags and technology.
- Confidex will continue to operate its business and leverage Beontag's global reach.
Exhibitors at RFID Journal LIVE! 2022 will offer RFID labeling solutions. To learn more, visit the event's website.
