Europe’s first quarter 2024 prices were static, followed by rises of between 80 and 100 euros in the second quarter for label grades. The third quarter is also opening on an upward trend, with many producers announcing increases of at least 100 euros/tonne, due to pulp price increases. As one producer put it, “Everything is lining up to ensure that these price rises will unfortunately materialize, the main indicator, of course, being pulp prices, but the rises just won’t stop. Once the peaks were reached, we thought there would be a leveling-off, but prices continue to rise. What’s more, in the second half of the second quarter, the market experienced a slowdown in activity following the euphoria of the beginning of the year, because since May, label converters have been placing fewer orders.”

Focus on focus

One of Britain’s few remaining press manufacturers, Focus Label has a 40-year experience of designing mostly flexo presses, but now also represents Konica Minolta. Konica’s AccurioLabel 230 digital toner press, demonstrated at Labelexpo Europe, was recently installed at James Label’s UK plant. Like many small or medium converters, James Label has been running very nicely thank you on flexo technology, but it now felt the need to go digital.

Keven Mitchell, joint managing director, comments, “With our impressive growth over the last 12 months we needed to invest in new technology to complement our existing digital offering to our increasing customer base. The new press will operate alongside existing Focus flexo presses to enable the company to satisfy the increasing demand for short run and variable data label production.”

Eliminating glass, recycling plastic

Bailey’s is a drink described as an Irish cream liqueur. Your correspondent tried it (once), but it is very popular in Britain. Made and marketed by Diageo, Bailey’s has just been test-marketed with a “bottle” composed of 90% paper fibers with a thin lining of plastic and an aluminum closure. For the test, held in Spain, particular attention was focused on the transport from Ireland. For this new container, Diageo called in The Bottle Collective, set up by PA Consulting and PulPac, the Swedish R&D company behind the dry-molded fiber production process.

Jamie Stone, design and innovation expert at PA Consulting, explains, “Dry-molded fiber bottles are a huge step forward, setting new standards in the world of more sustainable packaging. But it’s only the beginning. PulPac’s dry-molded fiber technology has immense potential: not only is it water- and energy-efficient and recyclable, it’s also viable at commercial manufacturing speeds and scale.”

Diageo is reported to be working on similar “bottles” for whiskey and rum. The bad news for label converters is that dry fiber packs can be direct-printed; the good news is that many drinkers may not be enthusiastic about fiber bottles.

Another eco-friendly innovation comes from Amcor Capsules, maker of closures and films for wines, spirits and sparkling wine products. The company has just developed a new plastic-free closure solution for its customer Moët & Chandon champagne. Your correspondent has offered to beta-test the new champagne closures, but so far no reply.

Another ecological initiative combines the practical with the exotic. Based in Indonesia, the Prevented Ocean Plastic company collects empty bottles and other plastics along a section of shore. These are then recycled into new bottles for a wide range of (mostly UK-based) industries. The British cosmetics manufacturer Lush is the latest of a long series of “converts” to bottles made from certified, recycled Prevented Ocean Plastic. Lush has long been using 100% recycled PET for its transparent bottles, and using raw materials fished out of the Indian Ocean certainly gives this cosmetics brand a few more brownie points. However, transport costs may limit the attraction of this initiative.

Andy James (L) and Keven Mitchell with Focus Label’s Antony Cotton

Do Belgians bite?

Too small to be a Great Power, Belgium needs to be entrepreneurial. MCC Verstraete, though no longer strictly a Belgian company (it is now majority-owned by MCC), is a world leader in in-mold labels, with sales exceeding €170 million.

Another good example is the Reynders Group. This family-owned self-adhesive label specialist, founded in 1956 and now in its third generation of managers, has worldwide sales of around $160 million and claims to produce eight billion labels annually: its pharmaceutical label division is also number one in Belgium (and possibly, in Europe) for profitability, with a return on equity pushing 40%.

Last year saw Reynders’ acquisition of Germany’s Schäfer Etiketten. The German site is Reynders’ eighth, and the group is believed to be interested in making more acquisitions to complete those already existing in Poland, France, Spain, and India. As their motto says modestly: “We’re professional nerds when it comes to labels and shrink sleeves. But nice nerds. And we don’t bite.”

drupa – the final word

Most, but not all, drupa visitors came away satisfied, but the reduced number of exhibitors and visitors could be a sign that some changes are ahead. Starting in 2024, the partnership set up between drupa and PRINTING United Expo, located in Europe and North America, respectively, is clearly designed to bolster the reach of each brand throughout the industry.

“PRINTING United Expo’s one-roof approach aligns very strongly with what drupa has brought to the industry over the last seven decades,” says Sabine Geldermann of drupa. “Showcasing the many applications printing technology has these days, not only in the graphic arts field but in packaging, industrial and textile, this is what our attendees appreciate.”

GIPEA looks at threats and opportunities

Italy is a major force on the European label scene. On June 13-14 of this year, the annual Congress of the Italian label association GIPEA was held in Genoa: two solid days of networking and professional updating on market scenarios, economic trends, and future prospects, with a focus on two topical issues: sustainability and technological innovation.

Outgoing president Elisabetta Brambilla passed the baton to Stefano Salvemini, elected as the new Gipea president, who summarized the association’s aims as, “Meeting, discussing, collaborating at all levels among colleagues, supplier companies, education and training institutions; this is the only way to face an increasingly complex future.”

The first day of the Congress included a focus on “Generative Artificial Intelligences and Creativity,” by Alessandro Garofalo, who examined the potential of AI in creating marketing plans and promotional campaigns. However, as he stressed, AI also has limitations: it cannot substitute for empathy and understanding people’s emotions.

Other speakers at the convention covered, amongst many other topics, the perennial problem of EEC regulations. And Italy being second only to France in gastronomy and conviviality, the first day ended with a grand gala dinner in the impressive setting of the Genoa Aquarium.

Etifam opts for Screen

The Portuguese label printing specialist Etifam, founded 20 years ago by Alberto Pereira, has just installed a Screen Truepress Jet Label 350UV SAI-E. This investment is part of the company’s strategy to offer its customers cost-effective digital label printing services.

“When we decided to switch to digital inkjet, we carefully compared the various options. We chose Screen because their solution met all our requirements,” says Pereira.

The company has enjoyed steady growth since its founding and boasts a distinctive portfolio of customers active in the olive oil and wine sectors, as well as some in household products industries.

Never mind the sales, just feel the profits

Eleven percent down on 2022 – that’s how much lower Fedrigoni’s sales were in 2023. On the other hand, margins are on the up and up. The Group’s proforma EBITDA has risen by 8%, from 314 million euros in 2022 to 338 million euros in 2023 (an EBITDA margin going from 15.4% to 18.7%). This is proof of the company’s solidity and profitability despite the downturn in sales and business volumes in the multinational’s main business sectors.

One of the key factors in this growth strategy is the Group’s increasing global expansion, with offices and production sites in 28 countries: 21% of its business comes from the Italian market, 49% from the rest of Europe, and 30% from the rest of the world.

Marco Nespolo, Fedrigoni CEO, comments, “The year 2023 was marked by great volatility due to geopolitical instability, overstocking in many value chains, and an unfavorable macroeconomic context. Nevertheless, we continued to gain market share in all sectors and geographical regions, closing the year with stable financial results.” 

Today, Fedrigoni is the world’s third largest player in self-adhesive labelstock and the second largest in art and drawing papers. It employs 5,500 in 28 countries.

Anti-greenwashing rules for European Union

The EU’s planned anti-greenwashing directive (“Directive on Empowering Consumers for Green Transition”) is designed to take action against vague, misleading, or downright false environmental claims. It aims to provide consumers with a better basis for making sustainable decisions about what they buy. If the measure is passed by Brussels, EU member states will have to transpose the anti-greenwashing directives into national law by March 2026. This should curb the use of labels purporting to show “eco” or climate-beneficial features, except where the brand can provide clear scientific evidence for their environmental claims. Exactly how this will work is not yet clear but will no doubt be spelled out in yet another hefty directive.

Philately for the well-bread

On May 17, 2024, the French post office issued a self-adhesive postage stamp illustrated with a French baguette. A special feature of this stamp is its “bakery fragrance,” and it was first issued on Saint Honoré’s Day, he being the patron saint of bakers. To smell this postal baguette, all you have to do is gently scratch it to release the flavor.

“This breaks open the scented capsules,” explains Philaposte printer Damien Lavaud. The craftsmanship and culture of the French baguette are included (along with polonaise dancing and Lithuanian straw gardens) in UNESCO’s Intangible Cultural Heritage.