Food Label
For converters in food label industry, offering steady work, but not without challenges. Rarely to find a product that people not only require, but enjoy. U.S. Food and Drug Administration (FDA) regulates regarding substrates, inks, varnishes and adhesives on labels with both direct and indirect contact with food, this branch of the industry is one of the few that is practically recession-proof.
According to the November 2011 TLMI Index and Trend Report compiled by L.P.C. Incorporated, the outlook for food production is positive. In fact, they predict a 2.3 percent increase in food production in 2012 over 2011. The report states: “Demand for food packaging products and supplies is expected to rise by mid-2012 as food production regains a sustainable rising trend. Be prepared for increases in activity.” Beyond that, the report states that strengthening economies in the US and across the world will contribute to an overall increase in food production throughout 2012. The proliferation of Food product segmentation leads to this growth, now people have more choices on food, which is obviously good news for a converter though with some challenges.
Greg Jackson, president of Columbine Label in Centennial, OH, USA, says about 45 percent of his business is food-related. He also says that an increase in food label work can be an argument for a converter to go digital, though, he says, “the added consequences are gaining jobs that may have not been appropriate or cost effective before. And with the added efficiencies, there’s no longer bottlenecking overall plant production with these types of jobs.”In the pre-digital era, Jackson says, segmentation could be a make-or-break proposition.“Depending on the number of copies and plate or color changes associated, it could get very expensive and possibly not competitive, and tie up significant press time, thus impacting the lead time throughout the entire shop,” he says.
Innovative Labeling Solutions in Hamilton, OH, USA, prints its food labels with HP Indigo machinery, and Kathy Popovich, director of marketing, emphasizes that digital print technology is a significant advantage in successful food label printing. “For ILS, product segments that have many SKUs, otherwise known as ‘SKU proliferation,’ are ideal for a digital print program,” she says. “The impact on print production is minimal – other than file management, which is handled easily in a digital workflow – but the benefit to the food manufacturer is immense, allowing for unique iconic graphics for each SKU, whether that be photos or designs that reflect the personality of the flavor.”
Promotional Labeling
Though we know that a strengthening economy will result in an increase in consumer spending, particularly on food, consumers have largely been concerned with savings the last few years. According to a 2008 report by the Promotion Marketing Association’s Coupon Council, 97 percent of American shoppers reported using coupons at supermarkets. Furthermore, the report states that more than $350 billion of packaged goods coupons are offered annually. In other words, people really like coupons.
Kieron Delahunt, owner of Axiom Label Group in Compton, CA, USA, has seen the effects of this firsthand. “Promotion in the food market is on the rise. We are consistently seeing more food manufacturers look to us for our expertise in two main constructions: dry release and multi-panel promotional labels,” he says. “The instant redeemable coupon (IRC) has become very popular in recent years. This construction is a dry release label with a discount printed on the back of the label, which is redeemable at the counter.
From Internet
Print Series Team
2 March, 2012
