Label Training Nov 9, 2010

1. Label TrainingNov 9, 2010

2. Largest opportunity for success is in Wine, Beverage, and Food labeling

3. Market Opportunity • Wine label opportunity includes all types of wines. • Current market share for wine is 80% or about 8 million lbs • Objective to maintain and grow by an additional 1 million lbs. • Beverage includes micro-brews, bottled water, spirits, and organic beverages. • Current market share is small, less than 1%. • Objective to capture as much market share as possible. • Food/Condiment includes packaging with indirect food contact such and bottled or canned products. • Current market share is small, less than 1%. • Objective to capture as much market share as possible.

4. Label growth will come from sources other than Wine • Wine label 80% market share • Consumer beverage • Food • Condiments • Health and Beauty products

5. Two main ways labels are applied • Pressure Sensitive (PSA) • Elevate Printing Refinement • Reduces order quantities economically • Increase print colors economically • Add brand security elements • Add personalization elements • Reduce eco-footprint • Eliminate surprises via proofing/prototyping • Mostly rolls • Glue Applied • A wide range of looks from premium wine stock to high gloss metalized film • Excellent graphics reproduction and on-product durability • Dependable high speed application • A cost effective choice for high volume applications with few change • A variety of performance characteristics from standard paper to full wet strength paper • Always sheetfed

9. Cost Comparison PSA VS. Glue Applied

10. Glue Applied Technologies

11. Mainly of the rotary type for high-speed applications, and the straight-through type for moderate speeds. Krones labelers, made in a vast variety of sizes, models and configurations, are the standard by which all are measured.  Glue labelers require change parts to run different bottles and/or labels. Machines are usually factory equipped to apply a body or full wrap label and optionally, neck and/or back labels. Users should chose a machines with the maximum capabilities they expect to use, as retrofitting to add neck labels on a body-only machine is costly and seldom practical. Glue Labelers

12. What is a PSA label?

13. PSA Label make up

15. Liner Function

16. Typical label application

17. PSA Labelers Pressure Sensitive Labelers are mainly used on slower lines. The self-stick labels are fed into the machine off a spool and applied to the bottle. Machines with wrap around label capability have a wrap station to roll the label onto the bottle to assure adhesion. Getting pressure sensitive labels to adhere properly to bottles that have been filled (and are therefore cold and wet with condensation) can be a big challenge, so many operators label before the bottles are filled. Generally, 50-60 BPM is a high speed for pressure sensitive label applications.   

18. End Use Application

19. Application by label type

20. Printing technologies changing rapidly

21. NA digital install history

22. Estate clearly the market leader

23. Premium Label Paper offering • Classic Wine Label • 60# basis weight • Finishes: • Smooth • Linen • Laid • Felt • Colors: • Solar White • Solar White Recycled • Classic Natural White • Attributes: • Non wet-strength • FSC certified • Estate Label • 60# basis weights • Finishes: • Vellum • Laid • Smooth • Felt(proposed) • Pearlized( Proposed) • Colors: • White • Natural • Cream • Bright White • Attributes: • Wet-strength • Recycled 30% &100% (proposed) • Proposed Line • 55# and 60# basis weights • Finishes: • Vellum • Laid • Smooth • Felt • Embossed • Colors: • White -recycled • Natural • Kraft - recycled • Black • Attributes: • No wet-strength

24. Terminology

25. Terminology • MSI – Abbreviation for one thousand square inches. This is a unit of measurement that label material is purchased and sold in. (1,000 S.I.) • PSA – Pressure sensitive adhesive • Glue Applied – Refers to the process of how the label is applied to the container • Lineal Feet – Distance in feet • Mils - Describes thickness • Wet-strength – does not mean waterproof, provides strength when wet. • Litho Label – Usually refers to coated 1 side label. • Ice bucket test – Subjective test where bottle is soaked in water. • Cobb - Measures paper's water absorption rate and is expressed as the amount of water pick-up per unit surface area of paper by Tappi method T441. Width Diameter Width Diameter

26. Math • Labelers talk in term of MSI (Thousand square inches) • Weight of Roll/ (Basis Weight ÷ [Area of Basic Size]) × 2  = MS • Lineal feet – feet in a straight line • Roll Weight × [Area of Basic Size]) × 500 / (Basis Weight × Roll Width) × 12 = Linear Feet • MSI = Weight/ (basis weight/ basic size) X2 • Example 10,000 lbs of 60 lb text • MSI = 10,000/ (60/ 950) x2 • MSI = 79,239 • $ Per MSI = Cost of paper/MSI • Example = 10,000@ 1.30 cwt = $13,000 • $MSI = $13,000/79,239 = $0.164 msi • $ per Lft = Cost of the paper /Lft • 10,000#’s 61in roll 60# text • LF= 108,151 • Example = 10,000@ 1.30 cwt = $13,000 • $Lft - $13,000/lf = $0.1202 lf

27. Label tools, more to come.. Estate label swatch Wine label papers folder Labels of the world Sample labels Mock label samples