The decision will end exclusivity for Arctic coated products through Howard Smith and Antalis with Arctic planning to sell direct to printers, and large corporate end-users among others.

There will be no exclusivity for its Munken grade, also stocked by Howard Smith. Amber Graphic will continue to be stocked by PaperCo.

Arctic Paper UK managing director Simon Ricketts explained: "The economics cycle of the paper industry has changed."

The Swedish manufacturer had said in January that where it felt it was incurring negative costs or not getting benefit, it would bypass the merchants and go direct to end-users.

Ricketts said he was forced to review Arctic Paper's performance in the UK. "I had to look at market share, bottom line and an overall cost benefit analysis of all our main processes as a business," he said.

Howard Smith Paper Group chief executive Malcolm Lane-Ley said he felt that with the poor financial performance of Arctic in the UK, this approach was trying to retain the margin that would have previously been taken by the merchant.

"Merchants, of course, provide a range of services, including collection, exchanges, delivery services and credit facilities."
Lane-Ley said he hoped Arctic had factored all these costly features into its perceived improved margins.

"The reaction I am getting is that people don't like it but that's all part of the change," said Ricketts.

Ricketts said he was currently upskilling and recruiting to both his internal and external salesforce.

Story by Andy Scott