Labelling the Beer Industry - Arena International · Labelling the Beer Industry presented by ... –Positioned as summer time beer to compete with Corona and Sol ... Global Branding

Labelling the Beer Industry

presented by

Dan Muenzer

VP Marketing Spear

• Labels & Beer

• Technology Development

• Beer Label Introductions

Today’s Topics

• Pressure Sensitive = Self-Adhesive = Applied Pressure Labelling (PS/SA/APL)

• Wet Glue = Cut Stack (WG/CS)

Disclaimer

• Leading supplier of labels to the beer industry – Self-adhesive (pressure sensitive) – Wet-glue (cut & stack)

• 94% of turnover is beverage

– 70% beer

• Production facilities in North

America, Europe, Africa – Beer customers in 59 countries

Who is Spear?

Label Market Overview

24%

31% 9%

33%

3%

North America Europe South America Asia Pacific ROW

Global Label Share

Source: AWA

70% 5%

25%

Global Label Evolution

33%

48%

6%

WG PS / SA Sleeve Other

1970 2010

Source: AWA

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Europe North America Asia Pacific

36% 33% 43%

42% 48% 37%

15% 13% 12%

7% 6% 8%

Other

Sleeve

PS / SA

WG / CS

Regional Label Share

59% 39%

2%

Glass Can PET

Beer by Format

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

E Europe W Europe N America Asia-Pacific

10%

27%

7% 5%

20%

20%

42%

14%

40%

50% 51%

80%

30%

3% 1%

PET

Glass

Cans

Draught

Regional Beer Format

87%

10% 3%

WG / CS SA / PS Other

Beer Labelling

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Europe North America Asia Pacific

87%

58%

95%

10%

37%

4% 3% 5% 1%

Other

PS / SA

WG / CS

Regional Beer Labelling

• Advantages – Dominant label method

– Traditional for beer

– CAPEX labelling in place

– Lowest label price solution

– Significant capacity

– Returnable market solutions

• Challenges – Label durability

– Limited substrates

– Line efficiencies

– Clean-up

Beer & Wet Glue Paper

• Advantages – Ultimate no label look

– Durability

– Tactile feel

• Challenges – Limited color palette

– Print capabilities

– Capacity

– Costs

– Inventory

– Environmental considerations

Beer & Direct Screen

• Barriers included: – Price points

– Line speeds

– Filling complexity

• Solutions included: – High speed label applicators

– Wide-web gravure / scale

– Operational efficiencies

• Challenges – CAPEX

Beer & Self Adhesive

SA Beer Penetration

2004 2005 2006 2007 2008 2009 2010 2011

4.2

20.1

25.6

• Billions of Units

• 2011 penetration 10%

Label Technology Developments

• Replacing the use of foil-laminates – Uses 18% less total material

– Utilizes <1% of the aluminum

– Full wet-strength vs. Groundwood

• Environmental benefits – Fully recyclable

– Uses <5% of energy of foil-laminates

– Better caustic usage • Less solution

• Lower temperature

Metalized Paper

• 20-40% construction reduction – 75µ → 45µ total material

• More labels – Per roll & truck

• Environmental benefits

• Aesthetic improvements

Thin PS Constructions

• 3.5 to 1 returnable bottles to NR

• Solutions duplicate NR graphics

• No washer modifications needed for caustic, time or temperature

• Commercial applications in Europe, Africa, Asia-Pacific

Wash-Off PS

• Traditional PS contaminates PET bottle regrind process

• Material developed allowing label, ink and adhesive to separate during flaking

• Approved by Plastics Forming Enterprises

– Complete removal from PET bottle wall

– New bottles with acceptable clarity and haze values

• Also approved by Cleanaway, Scandinavian Authorities

Recyclable PET PS

• Seaming done at point of application

• Cost savings up to 40%

• Commercial in both Europe and North America

• Application speeds up to 900 bpm

Full-Body Roll-On Sleeves

Approximately 300 digital new presses annually

30% of all new installations!

Digital Printing

Beer Label Innovation

• ABI – Bud Light

• North America

• Market chatter – #1 Innovation in 2011

Customer Custom

• Grupo Modelo - Corona

• 135 countries

• Market chatter – Back label PS

– Cost savings

– No market impact

– Expansion test markets

PS for Direct Screen

• Heineken Desperados

• France

• Market chatter – One of Heineken’s global

brands

– Multiple sub-brands country dependent

Multi-Branding

On-Premise PS

• SABMiller – Nastro Azzurro

• Italy

• Market chatter – On-premise package

– Off-premise WG labelled

WG & PS Combination

• SABMiller – Nastro Leggera

• Italy and Australia

• Market chatter – New brand

– Positioned as “light” verision of Nastro Azzurro

Large Pack Expansion

• Carlsberg - Tuborg

• United Kingdom

• Market chatter – Large format pack of existing

brand

– Printed on die-cut paper PS vs. standard WG

Metallic Inks PS

• ABI - Klynskoe

• Russia

• Market chatter – High sheen inks

– Converted from metalized WG

Metallic Inks WG

• SABMiller – Castle Milk Stout

• Africa

• Market chatter – Metallic inks provide nearly

same sheen as metalized paper

Blue Glass

• ABI – Bud Light Platinum

• USA

• Market chatter – Achieved 1.5 share in first 12

weeks

– Premium pricing to Bud Light family

Regional PS

• Craft industry

• USA

• Market chatter – Growing at double digits

– Investments in PS for operational and SKU management

Clear Film Frosting

• Carlsberg – San Miguel Fresca

• United Kingdom

• Market chatter – Under license from Mahou SM

– Positioned as summer time beer to compete with Corona and Sol

– Frost replicates etching

Labels in Embossment

• Innis & Gunn

• United Kingdom, USA, Canada

• Market chatter – Winner of multiple packaging

awards

Global Branding

• Heineken

• Global

• Market chatter – Proprietary embossed bottle

being introduced globally

– Includes returnable markets

– USA coming in 2013

Metalized PS

• Heineken CCM - Tecate

• Mexico

• Market chatter – Converted NR products from

metalized paper

– Increased sheen

Tactile PS

• Hank’s

• USA

• Market chatter – Tactile printed PS replaced

embossed paper

– Creates raised tin feel

Augmented Reality

Open Discussion