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Two private label diaper producers form new diaper company.

Two regional diaper producers, Veragon Corporation, Houston, TX and VMG Enterprises, Vancouver, WA, have merged to form a new company, Drypers, which will be headquartered in Houston. The new company will market disposable diapers and training pants throughout the U.S. market.

"Our strategic goal is to become the leader in the 'all other' category," said company principal David Pitassi. "We will probably do more in the private label area, although the quality aspects of our products approach features above private label offerings."

The company currently produces two regional diapers, "Baby's Choice" and "Drypers" and intends to keep both products. Mr. Pitassi reported that the diapers are very similar in features and positioning and are well known in their individual regions; Baby's Choice is sold in the Northwest U.S., while Drypers is available in the Southeast and Southwest.

Drypers also plans to introduce "Drypers" training pants, positioned to compete against Kimberly-Clark's "Huggies Pull-Ups" and introduced before a comparable product is available from Procter & Gamble. The company would not reveal specific introduction locations, but the product release is expected this summer.

Drypers also has revealed plans to offer a superabsorbent thin diaper similar to P&G's and K-C's recent introductions; however, Mr. Pitassi declined to offer specifics on the diaper features or introduction time frame.

The new company includes four principals, primarily from VMG and Veragon. In addition to Mr. Pitassi, other executives are Walter Klemp, Terry Tognietti and Raymond Chambers.
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Title Annotation:Drypers Corp. formed by Veragon Corp. and VMG Enterprises Inc.
Publication:Nonwovens Industry
Article Type:Brief Article
Date:Aug 1, 1992
Words:241
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