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