How can labels be used even more effectively?

Over the past two years, the Sappi paper mill in Gratkorn, Austria, has been further expanded as a central plant for label papers. What were the strategic reasons for this expansion? 

We forecast slight growth rates for the global label market in the coming years. This enables us, as a global paper group, to have strategic development potential. Before selecting a suitable location, we first decided to consistently strengthen our product portfolio of label papers and expand it to an almost full range. This applies to both wet-glue label papers and face stock papers for self-adhesive labels. It became clear to us relatively quickly that the paper quantities planned in the future would exceed the capacities of our existing production facilities in Carmignano in Italy and Alfeld in Germany, which is why we chose the Gratkorn site in Austria. The plant not only offered sufficient strategic capacity, but also already had a very extensive technical infrastructure in terms of production and further processing. The Gratkorn mill is one of the most modern paper mills in Europe and with our multi-million investment we now offer our label papers customers security of supply at the same time as the highest quality standards. With our location north of Graz in Austria, we can also quickly reach customers throughout Europe, as well as important shipping ports. It was also important to us to save emissions in both production and logistics, because as a responsible company we attach the highest importance to sustainability.

How does Sappi ensure security of supply for beverage manufacturers to avoid interruptions or downtimes in their production? 

Supply bottlenecks can be triggered at any time by global events, such as during the Covid 19 pandemic or due to the current wars. But, of course, there are also seasonal economic cycles that can lead to supply bottlenecks if there is a lack of flexibility. It is precisely in such phases that customers need a reliable and crisis-proof partner like Sappi. 

As a leading manufacturer of graphic and specialty papers, we are well prepared for crisis scenarios and to ensure that our customers always have enough goods available. In the past, we have developed many highly flexible production and logistics solutions with our major customers in the graphic paper industry. Our direct customers such as printers and converters as well as end users of label papers can now also benefit from this. For example, we have established so-called "carousel solutions" for most of our paper grades. This means that we are able to manufacture core products from various ranges in the same specification and performance at different locations. If there is an increased demand for certain papers, this efficient system allows us to respond quickly by producing orders in the respective back-up mills. This ensures the shortest possible delivery times alongside unlimited availability. 

In addition, we also offer service solutions that go beyond a normal "call-off warehouse" (a warehouse where goods are kept ready on demand). In this way, we can take over the management of our customers' paper requirements completely for maximum dovetailing.

Today's constantly changing consumer demands mean that brand manufacturers, printers and paper manufacturers have to react more and more quickly. How does Sappi rise to this challenge in terms of label paper production? 

If consumers frequently want new and creatively designed print products, it is first and foremost the task of brand manufacturers and printers to react to this. It is our responsibility to produce high-quality paper at the desired customer appointment that meets the highest quality criteria and can be efficiently processed with all common printing and finishing processes. To achieve this, we work closely and proactively with our partners and analyse predictions of future trends very precisely. This now also includes the use of AI.

The latest product made from Gratkorn is the wet-strength and alkali-resistant wet-glue label paper Parade Label WS – available in a glossy and linen-embossed versions and used, for example, for returnable bottles. What are the advantages of the two variants? And for which applications is the new linen-embossed version particularly suitable?

Both papers use the same base paper and thus have excellent technical properties. As a result, they offer high running and labelling performance. They are therefore very robust in the production and printing process, providing high-quality performance there.

One difference in the papers is in the way they are used. The embossed variant is often used for neck labels in the beer industry, for example. In general, embossing in the beer sector is not a pure design element, but rather a functional element to reduce the static attraction and stiffness of the labels and thus ensure a trouble-free labelling process. In general, embossed paper is usually used in offset printing, where the printer – unlike with engraving printing – usually does not have their own embossing option.

Consistently high quality is becoming increasingly important for manufacturers and consumers. In this respect, our two paper variants score points both in the production process, which runs smoothly due to the properties described, and in visual appearance at point of sale (POS). The papers allow brand manufacturers maximum design freedom when it comes to labels – and thus the ability to stand out visually from the competition. In the end, of course, it is also a matter of personal taste whether you prefer to use the glossy version or the linen-embossed version.

Parade Label WS is particularly suitable for reusable beverage bottles. Which functionalities of the paper are important for such applications?

In addition to the requirements already mentioned, there are important other aspects such as glue absorption. This means that the paper must absorb and hold the glue well enough for the label later to adhere perfectly to the bottle – and to PET and glass bottles alike. In terms of bonding, it is also important that there are no waves or protruding corners. Even demanding contours, such as the conical neck area of bottles, should be optimally supported. In addition, the labels must be able to be separated perfectly so that multiple label removal does not interfere with the labelling process. At the end of the product cycle, the label should also wash off without leaving any residue on a reusable bottle. Here, wet-strength and alkali resistance is particularly important. In concrete terms, this means that the label must come off the bottle without leaving any residue within a specified time and must not disintegrate or lose its colour so contaminating the detergent solution.

How does Sappi test the functionalities such as wet-strength and alkali resistance? When do the tests take place and how do they work?

We use a standardized test procedure. For each production cycle, there are certain basic values that are checked – either directly during paper production on the machines or afterwards in one of our laboratories. To this end, we have also invested in new testing machines in Gratkorn in order to better be able to meet the beverage industry's requirements for certain quality criteria. So, we regularly test the wet-strength and alkali resistance according to the binding standards and regulations. When it comes to requalifying a paper, –adapting its properties for specific applications – we coordinate closely with the end-customer before our tests.

We used 2024 intensively to qualify Parade Label WS at both printers and brand owners, such as breweries and mineral water manufacturers. From this, we received very positive feedback because our paper – both in its glossy and linen-embossed versions – can be used excellently in even the most demanding applications, regardless of whether it is belly, back, chest or neck labelling.

Labels intended to encourage purchase need bold typography and bright colours for high-quality branding. How does Sappi ensure these labels achieve excellent printing and finishing results?

Overall, we optimize our products in a targeted manner to meet the requirements of the printing industry. For example, we only use high-quality components and modern pigments for the coating, which positively affects the printability, colour rendering and gloss of the paper.

The purity of the paper is also very important to us. That's why we only use virgin fibres in production. These do not leave any visible traces on the surface, as is the case with most recycled fibres, for example. In this way, we ensure a very high-quality surface that can be printed very well and finished with all common shapes, for example by means of hot or cold foil stamping. Incidentally, the use of virgin fibres also benefits the mechanical properties.

Successful brands are consistent worldwide in terms of product and packaging. How does Sappi ensure consistently high-quality label papers and thus brand consistency?

In order to ensure the consistent quality of our papers, we attach great importance to very high production standards with an extremely low variance of technical parameters. With this consistency, printers and converters can be 100% confident that the paper and labels can be processed as desired, without any fluctuations between different production batches.

In addition to a balanced product, we also pay attention to a very high consistency of the raw materials used. In addition to wood and fibres, we source ingredients such as the chemicals and pigments contained in the paper from long-standing partners from whom we can also rely on consistent quality, and who guarantee us good availability. In short, we have the highest possible quality standards in both incoming and outgoing goods. In this way, we ensure that our customers always achieve a uniform appearance for their brands worldwide.

Both consumers and legal requirements are demanding more and more attention to sustainability. How sustainable are Sappi's label papers and their underlying production conditions?

As a world-leading paper manufacturer, sustainability and resource conservation are extremely important to us. For example, we have set ourselves ambitious targets that are based on the Sustainable Development Goals (SDGs) of the United Nations and the Science Based Targets Initiative (SBTi), among others. These hold us accountable and help to ensure we are making continual and ambitious progress on reducing our environmental impacts.

When it comes to decarbonisation, we have made good progress on our decarbonisation roadmap – completing numerous projects across our mills. As a result, we are well ahead of our 2025 target for reducing CO2 emissions – and still the projects (and progress) continue. At our Gratkorn mill, not least, we been investing in a series of sustainability projects. The plant has already lowered its fossil-based CO2 emissions by 35% compared to 2019, with that reduction estimated to rise to 55% by project completion later this year. 

Sourcing woodfibre from well-managed forests is another aspect we take very seriously in our business. All of mills and woodfibre suppliers are chain of custody certified, and all forest-based raw material is traceable to its origin.

Which legal requirements currently have the greatest influence on label production?

First and foremost, of course, is the EUDR (the EU Deforestation-Free Regulation). This was actually supposed to come into force at the end of 2024, but was postponed for a year.

We welcome these sustainability efforts of the European Union, and our regional sustainability teams are in close contact with the various political bodies. In this way, we receive first-hand information, contribute our perspective as a global paper manufacturer and can also advise our global partners on how to implement the relevant regulations.

In addition, the EU's PPWR (Packaging and Packaging Waste Regulation) may also have an impact on the production and use of labels. For example, the regulation will introduce labelling requirements, recyclability criteria, product bans and re-use requirements, just to name a few things. Labels are considered part of packaging so will be implicated, but will also play a key role in communicating recycling information to the consumer. So, there are many aspects to watch. We are following the current policy developments very closely to stay ahead of the curve and ensure that our products and partners are future-proof.

How do you think the label market will develop in the coming years?

The label market has already recovered from the crisis in 2023-24 and we are convinced that this recovery will continue. Of course, we benefit from the fact that the food and beverage industries cover a basic human need – because even in times of crisis people need to eat and drink. And the growing world population and increasingly smaller households are also a catalyst for increased demand for packaging and labels. In terms of volume, we expect global demand for labels to continue to grow slowly but steadily. That’s why we are confident that the extensive investments we have made in Gratkorn will pay off.

Of course, the label paper industry also faces the challenge of adapting to frequently changing trends and consumer wishes. Beverages with ever newer flavours, such as the numerous mixed drinks that come onto the market every year, require innovatively designed labels. At the same time, labels are becoming more and more sustainable.

As a paper manufacturer, we should partner with label producers and beverage manufacturers to use these trends to create impressive and positive consumer experiences – and keep customers loyal to their preferred brands in the long term. We mustn’t neglect the issue of quality, because high standards are often taken for granted, but they are not a matter of course. That's why, with our wet-glue label papers, we offer our beverage industry customers both outstanding, reliable performance in the production process and a high-quality appearance at the POS.