Page 4 - Snap Equipment Release Note

Background
The label market (excluding roll) for the purposes of this release can be split into two
categories depending on the post finishing work required. Flat sheet labels are printed and
then undergo some form of post print finishing whether they are forme cut, kiss-cut or
straight cut. The second category includes the pre-cut market where the labels sheets,
typically A4, have already been kiss-cut to a predetermined shape and size and are ready for
direct print and packing. The pre-cut A4 market in 2020 for unprinted stock is estimated to be
approximately $5M* in size translating to a printed retail finished product value between $70-
100M. During the Covid Pandemic, demand for pre-cut label stock has increased by 4% whilst
there has a been a decline of 10% in straight flat sheet stock. Most likely this increase in demand
for pre-cut has been driven by small start-up businesses labelling their own product. (* approximated data from Industry sources)
Current Market Situation
The supply of pre-cut labels to the production print market is through a limited number of either paper or label specialist suppliers. Each supplier offers their unique set of sizes and in a range of stocks and adhesive types. Suppliers include Avery, Labelline, B&D, Keon (ex Watts).
Current Pre-Cut Supply Issues
Pre-cut labels whilst they offer the convenience of being supplied on an A4 sheet ready to print in many shapes and sizes they also present many logistical issues for a Centre. Typical issues with pre-cut labels in fulfilling an order are:
• Stocks can only be ordered in minimum quantities and pack sizes.
• Typically, delivery may take several days from stock order placement.
• Freight is often charged in addition to stock making small orders very expensive.
• Given there is such a large number of shapes, stocks and adhesive stock options a
Centre will typically order stock on an as-needs basis to fulfill a specific order.
• Stock is typically supplied as an A4 sheet and print would incur the same copy charge
as a large sheet print (SRA3) doubling the cost per A4 equivalent.
• Often stock is left-over from an order that cannot be used immediately. Label
adhesives have a shelf life deteriorating over time. The required stock management for left-overs and the limited shelf life, ultimately leads to wastage. (note: the stock pack costs would typically be built into the quote and Customers would be charged for a full pack rate).
• Alignment of the print with the supplied pre-cut label templates requires a skilled prepress operator to impose the artwork to fit correctly.
• Overs have to be allowed for to make final checks and adjustment to ensure the art fits to the template along the whole sheet when being printed.
For the love of print