8 Nick Howard Uline’s challenge to print’s naysayers
INSIDER
Hiring quality talent
Arecent “Canadian Survey on Business Conditions” by Statistics Canada found “shortage of labour force, recruiting skilled employees, and retaining skilled employees are leading obstacles businesses expect to face” this year.
47.4%
According to a recent Statistics Canada survey, over 47 per cent of manufacturing businesses expect recruiting skilled labour to an obstacle in the near future.
According to the survey, nearly 35 per cent of businesses expect labour shortage to be an obstacle. In March, over 1 million positions went unfilled across Canada. Manufacturing businesses (47.4 per cent) were most likely to expect difficulty in recruiting skilled labour. Among businesses that expected shortage of labour or recruiting and retaining skilled labour to be an obstacle, nearly 58.7 per cent reported recruiting and retaining staff was more challenging now than a year ago.
Considering these challenges, nearly 54.6 per cent reported management would have to work more hours, and close to half (47.3 per cent) said current staff would have to work more hours to compensate. Additionally, nearly twofifths expect these labour obstacles to limit growth or cause the business to hire less suitable candidates. Over 25 per cent anticipate the labour challenges to cause delays in order deliveries.
Wage adjustments
To help attract and retain staff, Stats Canada reports businesses are adjusting their wage plans. Average hourly wages for employees rose 3.3 per cent on a year-over-year basis in April. More than half (55.2 per cent) of businesses expect inflation to be a bigger issue when discussing wage increases with employees. This issue was most prevalent in businesses in accommodation and food services (76.1 per cent); manufacturing (70.9 per cent); and arts, entertainment, and recreation (62.3 per cent).
Strategies to consider
In light of these statistics, here are some strategies that small and medium-sized businesses can implement to attract and retain quality talent.
A competitive pay along with regular bonuses and raises would help companies build goodwill among employees and increase loyalty. As explained by Jennifer Hartman in an article in Fit Small Business, “Competitive pay is more than just dollars in a paycheck: It also includes the benefits offered to employees that contribute to their total compensation—
health-care coverage, life/disability insurance, paid time off, and retirement benefits. Making sure that your total compensation package is competitive will also increase your chances of retaining your employees.”
Heather Black, a recruitment specialist at Connecting for Results, stresses on the need for creating a flexible, equitable and inclusive company culture.
“Employees want to be treated as individuals, each having a unique set of circumstances. Evolved employers measure performance by results and not face time,” she wrote in a recent e-mail from the company.
She also suggests creating an employer branding strategy that includes developing and widely sharing content highlighting the company culture. She encourages employers to take advantage of recruitment websites like Glassdoor and Indeed where it’s possible for existing and potential employers to rate their experiences with a specific company. A positive review will speak volumes and can increase the trust factor.
Work-life balance
A healthy work-life balance has been key to navigating the pandemic. This will continue to be an important ask from employees even after the pandemic. Employers can consider offering work from home or flex hours. As Hartman said, “Work-life balance can also involve maintaining manageable workloads, creating a positive work environment, and providing wellness programs. Allowing employees to prioritize a healthy work-life balance will make them more likely to stay with your company for the long haul.”
Upskilling and growth
If you want to retain your employers, offer them opportunities to stay and grow. Encourage employees to pick up new skills and certifications. Conduct annual training sessions and quarterly performance reviews. Always promote from within. This is a huge morale booster and builds company loyalty. I hope these tips are helpful and you’re able to hire and retain the talent you want.
Reader Service
Print and digital subscription inquiries or changes, please contact Angelita Potal 416-510-5113
apotal@annexbusinessmedia.com
Fax: 416-510-6875
Mail: 111 Gordon Baker Road, Suite 400, Toronto, ON M2H 3R1
Bob Dale, Gordon Griffiths, Nick Howard, and Treena Hein
Media Sales Manager
Kim Barton kbarton@annexbusinessmedia.com 416-510-5246
Media Designer Lisa Zambri lzambri@annexbusinessmedia.com
Account Coordinator
Alice Chen achen@annexbusinessmedia.com 416-510-5217
Audience Development Manager Urszula Grzyb ugrzyb@annexbusinessmedia.com 416-510-5180
Group Publisher/VP Sales Martin McAnulty mmcanulty@annexbusinessmedia.com
COO Scott Jamieson sjamieson@annexbusinessmedia.com
Subscription rates
For a 1 year
subscription (10 issues): Canada — $43.00 +Tax Canada 2 year — $70.50 +Tax United States —$98.00 Other foreign —$191.00
All prices in CAD funds
Mailing address
Annex Business Media 111 Gordon Baker Rd., Suite 400, Toronto, ON M2H 3R1 Tel: 416-442-5600 Fax: 416-442-2230
Occasionally, PrintAction will mail information on behalf of industry related groups whose products and services we believe could be of interest to you. If you prefer not to receive this information, please contact our Audience Development in any of the four ways listed above. Annex Business Media Privacy Officer Privacy@annexbusinessmedia.com 800-668-2384
PrintAction is printed by Annex Business Media Printing on Creator Gloss 80lb text and Creator Silk 70lb text available from Spicers Canada.
ISSN 1481 9287
Mail Agreement No. 40065710
printaction.com
NITHYA CALEB Editor ncaleb@annexbusinessmedia.com
Koenig & Bauer officially confirms that Kenmore Envelope, a high-end direct mail solutions provider, has set a world record on its Koenig & Bauer Rapida 106 LED-UV six-colour press. In one 24-hour span, Kenmore produced 444,444 gross sheets with only one per cent run waste at its Richmond, V.A., facility.
“We are so proud of our extraordinary team and their effort to achieve this amazing world record,” said Scott Evans, Kenmore’s president & CEO. “This is an unheard-of production performance and displays the phenomenal skillset of our employees, our company’s culture, and the superior technology employed on the Koenig & Bauer Rapida 106 press.”
Print Against War is a non-profit initiative aimed at helping Ukrainian printing and packaging companies continue to operate or providing support when they can again start up their productions.
Before the war, the printing and packaging industry in Ukraine employed more than 100,000 people. Since February 24, 2022, the lives of all these people have been disrupted. Print Against War is taking care of them, involving them, listening to them, and understanding their needs.
If you’re interested in helping Ukrainian companies,
please join the Print Against War community.
The Circular Plastic Taskforce partners with Digimarc Corporation to test Digimarc Recycle, a digital watermark, for optimizing the sortation of flexible plastic packaging in Canada, a first in North America. Digimarc Recycle watermarks are applied within the package artwork without requiring special inks or print processes, and are visible to specialized sorting equipment, but imperceptible to consumers. The watermarks, when scanned by machine cameras, connect to a cloud-based database containing unlimited (and extensible) characteristics of the package, such as the manufacturer and specific product, prior use (food versus non-food), additives or the presence of components that are problematic for recycling.
Adobe unveils Adobe PDF Print Engine 6. The new version is
The Circular Taskforce plans to test the effectiveness of Digimarc Recycle watermarks to provide traceability of packaging.
optimized and updated to take full advantage of the latest system hardware and imaging science. The new colour features in version 6 will accelerate the adoption of spectral colours by brand owners. The reduced switching overhead between jobs will save time and money, especially as average run-lengths continue to decline.
In 2021, Printful’s revenue reached more than $289 million, an increase of 39 per cent compared to its revenue of $208 million in 2020. This has allowed Printful to fulfil over 48 million items and reach more than $1 billion in total gross merchandise value since it began in 2013.
Another major milestone for the company was achieved by securing a $130 million non-control investment from Bregal Sagemount, a growth equity firm. This financing established Printful as the first privately owned company with Latvian roots to achieve unicorn status with a valuation of over $1 billion.
Mark Andy is extending its partnership with Konica Minolta. It will be the exclusive provider of Konica Minolta’s newest technology, the Accurio Label 400 (AL400), for the labels and packaging industry. By integrating this new toner-based print technology into its Digital Pro line, Mark Andy is developing its first five-colour (CMYK and white) toner end-to-end label and converting solution.
The addition of digital white toner offers Mark Andy customers, for the first time, the flexibility to use clear or metallic substrates for short run label work without using a flexo plate. The new press provides print speeds up to 140 ft per minute.
Formed by Infigo, Significans Automation and Tillia Labs, Web Connect+ will host regular online events, giving printers the opportunity to ask any question (from high-level
Mark Andy integrates Konica Minolta’s Accurio Label 400 tech into its Digital Pro line.
background to in-depth technical queries) about web-to-print strategies.
The world’s largest compilation of recycled and next-gen paper and packaging options, the EcoPaper Database (EPD), has just been updated. Created by environmental non-profit Canopy, EPD lists over 1,100 paper and paper packaging options.
The new EcoPaper Database makes it easier to identify Superior Ranked paper. It provides references to FSC codes where available and includes a scan for coatings with ‘forever chemicals’ PFAS (per-and polyfluoroalkyl substances) in food serviceware as well as food contact safety compliance.
Capital Colour and Priority Printing merge their two organizations. Growth and stability are at the forefront of this decision. While the two companies are brought together over the next several months, operations will continue as usual. Brian Todd, owner of Capital Colour, and Robin Chapelsky, owner of Priority Printing, will act as managing partners.
The Association for Print Technologies (APTech) acquires one of the printing industry’s leading independent media organizations, WhatTheyThink. The move signals a continuing effort to help print businesses grow by providing a platform for education, inspiration, and connection. WhatTheyThink will continue to operate as an independent voice in the industry, and there will be no immediate changes in staff or operations.
The Kenmore Envelope team that set a world record on the Koenig & Bauer Rapida 106 LED-UV six colour press.
Digital finishing solutions manufacturer Kongsberg Precision Cutting Systems (Kongsberg PCS) has appointed Matt Thackray as vice-president/ general manager of its operations in the Americas. Thackray will be responsible for the management of the commercial, service support and financial performance of the business across the U.S., Canada, Latin America and South America, operating from Kongsberg PCS offices in Dallas. Originally from Canada, Thackray has been based in the Detroit, Mich., area for the past 16 years. He joins Kongsberg PCS from Gravotech, where he was general manager of the Americas.
The Flexographic Technical Association (FTA) appoints Kyle Baldwin as its new director of marketing and communications. In this new position, Baldwin will orchestrate and oversee FTA’s marketing across multiple channels and its communication with the association’s membership and the industry at large. Baldwin most recently spent five years at TLMI, initially as its marketing director and then as vice-president of marketing. While at TLMI, he led a full rebranding, web overhaul, CRM system update and event design. His career has also included marketing roles at NuLabel Technologies, Spear, Inc., and Constantia Flexibles (now Multi-Color Corp).
Allen Print of Dartmouth, N.S., recently installed a Certified Series Duplo DPB-500 Perfect Binder. The binder can produce books up to 2-in. thick and does up to 525 cycles per hour.
Roland DGA , has appointed Roland DGA president and CEO Andrew Oransky to its board of directors. As a member of the board, Oransky will play a pivotal role in setting strategy and direction globally for Roland DG Corporation. With this appointment, Oransky will also serve as managing executive officer of global sales and marketing for Roland DG, which allows him to have direct oversight of these crucial corporate functions. Oransky has served as president of Roland DGA Corporation since 2016 and assumed the expanded role of Roland DGA CEO in 2019.
Sterling North America recently completed installation of a new Speedmaster CX 104 from Heidelberg, the first-of-itskind in North America.
Asahi Photoproducts appoints long-time Asahi customer and senior industry expert Gene Martin as its agent in the United States. Martin has been in the flexographic industry for 40 years, the last 30 of which were with a major provider of flexographic services, where he rose from graphics division manager to plant manager. As Asahi’s agent for the U.S. market, Martin will be working directly with both Asahi customers and distributors in the United States to provide value-added services.
Auto Trim
Design, Concord, Ont., installs a new Kongsberg C64 digital cutting table, together with Dual Heavy Duty Unit, 3 kw router, Kongsberg CorruSpeed tool and Fast Tool Adapter.
Uline’s challenge to naysayers
A
printed catalogue places Uline in the hands of prospective customers in an unassuming
way
By Nick Howard
Recently, Uline, a privately owned supplier of everything from trash bags to bakery boxes, included in their delivery package an 800-page catalogue. I was intrigued. Why was Uline, a savvy and successful business, embracing an archaic marketing tactic: the printed catalogue?
However, Uline isn’t the only business mailing catalogues to customers. W.W. Grainger, Inc., another well-known industrial supplier, has the largest ‘mailed’ catalogue I’ve ever received. Coming in at over 3,200 pages, it would be an understatement to call it ‘massive’. Several other distributors have also continued swimming against the online current to distribute meaty volumes. All these companies (and many more) can’t be that slow or lack intelligence. Wasn’t print dying? Didn’t they get the memo?
I reached out to Brian Shenker in Pleasant Prairie, Wis., Uline’s vice-president of direct marketing and advertising, to find out why Uline was sticking to a medium many of us have given up for dead. We discussed Uline’s marketing (print editions, mailers, cards, social media, and direct email) strategies. Shenker said Uline wishes to control the complete advertising cycle, and print plays an important role in making the company more noticeable to prospective customers.
He went on to say that a printed catalogue can place Uline products directly into the hands of, for instance, a warehouse employee who initiated the order, but wasn’t named on the purchase order.The catalogue has a way of cutting through rigid
A printed catalogue places Uline products directly into the hands of employees who may find something new and valuable to order.
company structures and showing up in a shipping office or company cafeteria or even taken home by an employee. The catalogue lingers, well past its expiry date. Remember the old Sports Illustrated issues in your hairdresser’s salon.
3,200
Industrial supplier W.W. Grainger, Inc.’s, product catalogue is a massive 3,200-page book.
Shenker acknowledged that current paper shortages are a major concern and Uline must be flexible in choosing the paper and weight for individual runs. Regardless of the current crisis, Shenker believes a printed catalogue does an excellent job in circumventing the traditional purchasing agent while reaching a wider body of potential buyers at the same location. When the goods arrive—with a requisite free-ride catalogue in tow—the ultimate user often discovers valuable items they didn’t know about.
Large expenditures to keep mailing lists up to date are necessary, and Shenker believes the expense and time are well worth the trouble. Ironically, the mailing list serves both print and online activities. Various printed catalogues can reach specific customers in restaurants, offices, and warehouses.
According to Shenker, Uline’s printed catalogues are getting positive reviews from customers. He believes Uline’s catalogues are in the spotlight because considerably less catalogues are direct mailed today.
Shenker was adamant in suggesting that some of his competitors exited print early and are now regretting their hasty decisions.
Shenker believes print campaigns can increase Uline’s sales but worries about the declining amount of web printers who can serve his needs.The decline in commercial web plants (large enough to handle his work), growing materials shortages, and rising prices keep him on his toes. Recently in the United Kingdom, YM Group’s massive implosion is just the latest in a trail of web firms that ran out of road.
Surprisingly, Shenker had nothing but praise for the US Postal Service, referring to them as “still a bargain.” He had fewer plaudits for Canada Post, who are “more expensive”. Catalogue distribution is not specific to the mails either. Uline takes full advantage of the thousands of packages leaving their warehouses each week to insert printed materials or special editions to specific users.
NICK HOWARD, a partner in Howard Graphic Equipment and Howard Iron Works, is a printing historian, consultant and Certified Appraiser of capital equipment.
nick@howardgraphicequipment.com
August 17-19, 2022
America’s Print Show 2022 Columbus, Ohio
September 13-15, 2022
Labelexpo Americas 2022 Chicago, Ill.
September 15, 2022
OPIA Toronto Golf Classic Toronto
October 19-21, 2022
Printing United Expo 2022
Las Vegas, Nev.
February 27-March 2, 2023
Hunkeler Innovationdays
Lucerne, Switzerland
April 26-27, 2023
Wrap Fest
Towcester, United Kingdom
May 4-10, 2023
Interpack 2023
Dusseldorf, Germany
Business growth through acquisition
The current state of M+A activity in Canada
By Bob Dale and Gordon Griffiths
Companies need to evolve and grow in order to thrive. Maintaining status quo may provide regular income, but since most business relationships are not static, new customers are needed, new services should be offered, equipment needs to be replaced, and re-investment is required. Organic growth is good, but faces constant challenges, especially with our current substrate supply issues.
Merger or acquisition are options, but also face many challenges and risks. What is the current state of M+A activity in Canada? Connecting For
Results has conducted a study of publicly announced deals involving Canadian companies over the past two years and can share some interesting insights.
We are aware that activity for acquisitions virtually ground to a halt in 2020 due to the pandemic. As expected, there was increased activity in 2021. However, the level of activity increased at a significant pace in 2022. In the first five months, more deals were announced than all of 2021.
Why has activity picked up so much? To a degree there was pent-up demand, with some of the deals-in-progress resuming, but most of those were completed in 2021.
We have heard from several sellers the pandemic has taken a lot out of them, and they are now dealing with the new challenges of paper shortages and labour challenges.
Since business has picked up for many, and valuations are returning to pre-pandemic levels, with positive trends, many view now is the right time to sell. The new, and significant
demands placed on business owners has given them the incentive to consider their worklife balance. Selling a business is not a simple or quick activity, and sellers are often expected to remain engaged for one or more years to support transition activity, if they wish to obtain the highest value for their company.
What’s selling?
With all this activity, what are companies buying? While the spread of purchases appears to be balanced across the industry segments, commercial printers and packaging companies represent the majority of deals. These segments also represent the majority of the companies and print volume in Canada (70 to 75 per cent). There were several closures, especially in the trade segment and cold-set web plants. Some of the commercial transactions were classified as mergers.
Who is buying?
There has been a lot of discussion about private equity (PE)
Since business has picked up, and valuations are returning to pre-pandemic levels, many view now is the right time to sell.
buyers. While there is PE activity in Canada, we have also added ‘professional buyers’ to this category. This would include large companies/ consolidators who employ professionals to review the market, assess the opportunities and put deals together. In all cases, the common element, is that the deal needs to make business sense. The synergies come from different aspects including cost reduction, business growth, and additional capabilities. New reasons to purchase a company include access to paper and labour, which are issues that are projected to remain a problem for at least a year or more.
Many deals that are based on business closures and asset sales are not publicly announced, and there are buyers interested in acquiring ‘destressed’ companies. This has al-
In the first five months of 2022, more mergers and acquisitions were announced than all of 2021.
This chart represents all activities including closures.
acquire some of the assets, and try to secure their customers/sales. The previous owners are then left to deal with the creditors, leases, contracts,
your perspective and business goals, we wish you success!
Bob Dale and Gordon Griffiths
the sheet. The Reverse Printer (RP) technology is a print production workhorse.The press also can be configured to meet the perfecting needs of folding carton and blister packaging with a sheet thickness ranging up to 32-point board.
PBI SEEKS TO REVAMP ITSELF
Len Larose enters into a partnership with print industry veteran Ralph Misale
By Nithya Caleb
Recently, Printing By Innovation (PBI), Inc., a full service printing company in Beamsville, Ont., underwent a management change.
Len Larose, PBI’s founder & CEO, welcomed industry veteran Ralph Misale as a 50-50 partner in the company.
From declining orders to heavy competition, the challenges plaguing the commercial print industry are well known, and PBI hasn’t been immune to them. However, Larose refused to sell the company.
Larose
With an automotive industry back-
ground and experience in direct mail and marketing services, Larose began his career as a print broker 18 years ago. He hired his first designer within nine months of starting the brokerage because he was “tired of waiting for design time.” At that time, he still outsourced the printing work, but managed distribution through Canada Post.
Sales grew, prompting Larose to hire another designer, move into a bigger office and buy a couple of small Canon copiers to do little postcard runs in-house. Thirteen years ago, Larose’s company began full production work with a seven-member team and a 20-year-old
Printing By Innovation in Beamsville, Ont., has undergone a management change.
New high-end flatbed printer
300 m²/h output
10 colour channels
3.2 m wide roll option
When growing into new markets, we must change our mindset and learn what is required to service these markets. – Ralph Misale
Heidelberg Press. Eleven years ago, PBI set up its headquarters in Beamsville, where they’re currently located. The peak year for PBI was 2015-16 when it generated $16 million in revenue.
“We expanded our building, bought the Heidelberg XL-106
eight-colour press with coater, their flagship press at that time, as well as packaging equipment to do direct mail and diecut pieces,” explains 47-year-old Larose.
As is the case with majority of commercial printers, 70 per cent of PBI’s revenue at that time came
from one client. Over the last seven years, orders from that client declined due to a shift in their business priorities. This affected PBI’s bottom line significantly.
Larose began thinking of new business opportunities. Packaging seemed appropriate, as he already had the equipment and staff. Also, the commercial print space was becoming hyper competitive. The pandemic accelerated this shift— April-May 2020 was devastating for PBI, as the company’s revenues were down 80 per cent year over year from 2019. At that point, Larose decided to focus on the packaging market.
This was also the time when Larose was approached with acquisition offers, which he wasn’t prepared to explore. Larose was open to partnerships, though. A short meeting with Misale convinced Larose that they both had the same priorities and interests. Soon, a partnership agreement was signed, and Misale joined the PBI family in October 2021.
“Ralph is a family man with the same long-term vision and goals as I. We’re very much on the same page when it comes to recognizing opportunities and short- and longterm goals. It’s a great fit. I wasn’t looking for a paycheck to help me get through tough times. I wanted someone who can help me grow the business. With his experience, I felt comfortable that he could bring value and help do some of the heavy lifting,” says Larose.
Misale
In 1995, Misale did a summer job at HP Graphics, a large-format printer at that time in Burlington, Ont. He didn’t think it was possible, but Misale got hooked to the printing business. From sweeping the floor to working on the press, Misale has done it all. The 51-year-old worked his way up from being a press feeder, running production, and general manager to eventually purchasing the company, Eclipse Imaging, in 2010 with a partner.
“We had massive challenges and sleepless nights. We struggled to make payroll at one point, but we had a great team behind us. We dug our heels in and inched the company forward a little bit at a time. We took the company from almost closing its doors to becoming prof-
Ralph Misale joined PBI as 50-50 partner in October 2021.
Len Larose and Ralph Misale.
itable,” recounts Misale.
In 2017, the company was acquired by Data Communications Management. Misale worked with them for four years. At one time, he was the company’s chief operating officer. However, the corporate structure disappointed Misale, who eventually left the company.
PBI with its family-like work culture impressed Misale. The fact that Larose and he had the same interests and business priorities made the partnership an easy decision for Misale.
“You must have a certain mindset and an iron gut to be an owner in this industry. Len and I have gone through so much and know what it takes to run a printing company. We have put our necks on the line and are doing it again because we believe in our people and what we are doing. This is a family business with a great team that will help us grow into new markets,” shares Misale.
Pivoting to packaging
Both Larose and Misale are very clear on how they want to take the business forward. They’re focusing on small to medium-sized pack -
aging runs. Larose acknowledges some medium-sized runs are significant too unlike commercial print jobs.
The strategy seems to be paying off. This year, PBI estimates to earn $10 million, a 25 per cent jump from 2021, but this required some additional investments by Larose and Misale.
Apart from the global supply chain crisis, the most challenging aspect of PBI’s transition to packaging has been workflow, as it’s very different from the commercial print space.
“When growing into new markets, we must change our mindset and learn what is required to service these markets. When you enter new markets, having a great group of committed people who can roll up their sleeves and dig in is not enough. Proper procedures and processes need to be in place to ensure the clients’ needs are fully met,” says Misale.
By
The peak year for PBI was 2015-16 when it generated $16 million in revenue. $16M
Larose advises companies looking to get into packaging to determine “one or two sectors that they see a need in and remain committed to that. Don’t try take anything that comes at you. Get good at one or two things and focus on that,” he said. “You have to be able to shift and believe in the opportunity.”
A changed market
I’ve often wondered the meaning of “back to normal.” After living nearly three years in a pandemic world, I’m convinced that some things like work situations have changed for the long term. Larose agrees. “If anyone is thinking they’re just going to wait it out for another few months when it’ll be back to normal, that’s not the case. In my mind, it’ll never be back to normal. It will get much better, but I think it’ll be forever changed. This is not a one and done situation. This is going to change the market. I haven’t heard specifically of people building or closing yet, but I do believe that will continue to happen,” he says.
Misale stressed on the importance of constantly reinventing oneself. “If you don’t see, ‘What can I do differently? Where can I explore?’ you’re going to fall behind in any business. You constantly need to be shifting and reinventing yourself or you will get left behind,” concludes Misale.
Looks Like This
How Digimarc digital watermarks perform on printed labels.
Perfoms Like This
LABELS AS STORYTELLERS
Technology is optimizing labels for better brand engagement and product management
By Treena Hein
In this day and age, new ways to engage with old and potential customers have never been more critical. To catch the attention of the public, especially the younger generation, innovation is ramping up in area of ‘smart label’ technologies.
“At a time when the e-commerce channel continues to grow, the ability for brands to connect directly with consumers through digitized products is invaluable,” explains Phil Stafford, director of global channels at Digimarc Corporation. Connecting directly means that consumers not only interact with the real product physically, but also with its digital twin (a version of the
product accessible solely through internet-enabled technologies).
These innovations provide consumers with dynamic and more rewarding experiences with a product, even personalized experiences that might enrich their lives in a meaningful way. Stafford explains that as consumers become more familiar and comfortable with digitized products, they’re more willing to engage with them, “especially when the content is of value.”
For companies, the benefits of smart labels are obvious. When a new form of digitized product hits the market, it gets a lot of attention. The brand also becomes associated with the use of new, cutting-edge
ASPIRE. EVOLVE. SUCCEED.
THE LABEL ALL-STARS, THE PACKAGE PRINTING MVPs AND THE PROMISING ROOKIES ALL COME TOGETHER UNDER ONE ROOF THIS SEPTEMBER. At Labelexpo Americas 2022, you and your team will find an incredible array of the latest technologies and solutions alongside hundreds of live demonstrations that will improve your plays and achieve your business goals. This is your opportunity to turn your converting playbook from good to great. Experience it all at Labelexpo Americas 2022.
technologies, making these products seem ‘cool.’
However, there are other benefits in the direct communication channels created by smart labels between companies and their customers, says Stafford. Brands receive valuable, consensual data from consumers of the product in real-time, such as when, where, and how often a product is being interacted with, even when and where consumption occurs. This direct data capture informs future marketing strategies, allows companies to identify purchasing and consumption trends, and so on.
A look back
It’s been common for a few years now for companies to print QR codes on their labels to provide consumers with a direct link to product information. This might be the date on where and how the product was made, or even traceability of ingredients.
Companies like Multi-Color Corporation (MCC) offer a variety of interactive ‘smart label’ options that include reaction to heat or cold. Another example came on the Brazil market in June 2022, when
Digimarc on packaging allows products to be tracked throughout the supply chain.
06/ 2022
In June 2022, limited-edition bottles of Sol beer sporting labels with photochromic ink were released in Brazil.
limited-edition bottles of Sol beer were released sporting labels with photochromic (light-activated) ink developed by MCC. When exposed to sunlight, the label reveals a hidden message to consumers, enhancing their experience with the brand and reinforcing a connection with the brand name and the power of the sun.
Another example is the personal ‘Reel Label’ used by British Columbia-based Jones Soda. These labels have images of real customers on them, and other customers can learn the story behind the moment captured in the label through Augmented Reality (AR) videos on the Jones Soda app.
“We see customers utilizing these [types of smart labels] for promotional products and high-engagement campaigns,” says Kimberly Flynn, marketing project manager at MCC. “For AR and virtual reality, we have a number of customers who have launched very successful campaigns where consumers hold up their smart phones and the label comes to life. We haven’t seen these platforms grow at the same level as some of the other smart packaging options, but the brands that have
introduced this technology have been quite successful.”
This has certainly been the case for Australia-based Treasury Wine Estates. In 2017, it became the first wine company in the world to use an AR platform across its portfolio. For example, through a company app available in over 90 countries, consumers hover their smartphone over the label of the firm’s ‘19 Crimes’ bottles and are introduced to the associated real historical criminals. This innovation helped in achieving double-digit growth of the 19 Crimes brand in the US, and netted Treasure Wine Estates a prestigious Super Reggie marketing award.
Now, AR ‘smart labels’ have become truly interactive. The first Internet of Things packaging platform, recently developed by MCC and a company called Talkin’ Things, combines AR with near field communication (NFC) technology on the labels for an imaginary brand called ‘Black Beer.’
As explained by MCC, when the Black Beer smart label is scanned (again, using an app), “the skull displayed on the label engages in interactive dialogue with the consumer. The facial recognition feature detects if the customer is happy or sad and customizes the next part of the dialogue. Variable AR scenarios are also launched, depending on answers provided to questions asked by the skull.” The product also recognizes when the product has been opened, which changes the responses of the skull.
Operation and supply chain benefits
Other smart packaging and smart labelling applications, notes Flynn, are more operational, such as RFID and electronic article surveillance (EAS) tag inlays for product tracking and inventory management.
“The increase in online shopping has expedited the use of passive tags to manage operations and product tracing,” she says. “We see a larger growth in this segment of the market. Retailers are developing policies that consumer packaged goods brands are answering with tags applied either onto the container or onto the label before the container.”
For product security, among its other technologies MCC offers se-
Going Green with CMYK Paper Bags
By Richard Lee, CEO, Delphax Solutions Inc.
In June of this year, the Government of Canada published final regulations to prohibit certain single-use plastics, including plastic checkout bags. In most cases, this will prohibit the manufacture, and import of these items effective December 2022, with businesses required to use up their current inventory of such items by December 2023. Furthermore, there will be a ban on exporting these items from Canada by 2025.
Canada has long been recognized as a leader in environmental causes, and The Government of Canada estimates that these regulations will eliminate as much as 22,000 tonnes of plastic pollution over the next decade, and will virtually eliminate the up to 15 billion bags used by Canadian shoppers every year.
Aside from the obvious environmental benefits that this brings, could there be other opportunities for the printing industry? Delphax Solutions Inc., a manufacturer of inkjet based printing equipment, located in Mississauga, ON, believes so.
Plastic bags not only serve as a means to carry goods from the store to a retail consumer’s home, but also provide retail establishments with the opportunity to advertise their business. Higher volume users such as grocery stores and national brand retailers will continue to offer branded reusable bags, and bulk produced paper bags. Low volume users including smaller retailers, take out restaurants, cottage industries, etc., could benefit from short to medium production runs of customized paper bags for their goods. However, the current offerings available are not typically cost effective.
One major online promotional goods provider currently offers one of their personalized rope handled paper bags for between $2.70 and $3.10 per unit (volume dependent), with one design in CMYK across all bags. Another supplier will print on the same style bag in just a single color, but for a small run of 500 bags, has a plate setup charge of over $0.27 per bag, with each bag costing an additional $0.98 each. The same style bag can be purchased from a Canada wide shipping and industrial goods supplier for less than $0.40 per bag unprinted. Move to bulk suppliers, and the cost of an unprinted bag drops drastically. After that, with a cost effective CMYK inkjet solution to print on these bags, you can offer your customers fully personalized bags with no plate costs using pigment based inkjet printing, generating substantial margins for your business, while still providing cost savings to your customers.
It’s possible to further increase the value proposition by providing seasonal versions of bags, weekly or monthly version for restaurants to promote special deals, or even create 100% variable bags that allow for competition entries with time limited QR or other codes printed directly on the bag. The options are almost limitless.
Additionally, because you can eliminate the setup/plate fees, you can offer shorter runs allowing retailers and business to reduce their inventory holdings and better manage their cash flow and ensuring repeat business.
Delphax Solutions Inc.’s Elan 170 platform is a CMYK pigment inkjet solution that has already proven itself able to deliver on the promise of an environmentally friendly alternative to plastic bags with the recent installation of an Elan 170, sold by Delphax’s Quebec based reseller MD International, at Aubry Printing (AUBRY Solutions d’Impression) in Montreal, Quebec.
Martin Charbonneau, President, MD International, said of the installation, “MD International is proud to have sold and installed a brand new Delphax Elan 170 printing unit to Aubry. The system sold and delivered in March 2022, was easy to install, and the customer was up and running very rapidly with minimal support. Aubry has been producing small to medium size runs of full color paper bags using Delphax’s Elan 170 with the custom bag feeder which is allowing Aubry to develop a new revenue generating market.”
This Canadian manufactured inkjet solution can not only print on paper bags, but with swappable feeding options, can also print on paper, corrugated, and envelopes further increasing the ROI to any business investing in the system.
Moving to a more environmentally conscious production method can often be a challenging time, especially if trying to recreate the output from a previous process. However, in situations such as the migration from plastic to paper bags, there are opportunities to not only positively affect the environment, but also to provide greater marketing and cost saving opportunities for your customers, while increasing your bottom line.
For more details contact Delphax Solutions Inc. at 1-833-DELPHAX (1-833-335-7429) or visit www.delphaxsolutions.com
2017
In 2017, Treasury Wine Estates, Australia, became the world’s first wine company to use an AR platform across its portfolio.
cure QR codes, a new kind of QR code containing public and private data. Consumers scan the tag to instantly receive a message confirming
Digimarc digital identities on labels/packaging support traceability initiatives.
the authenticity of their purchased item. The public data can be read by any reader such as a smart phone. The private data is encrypted and protected
with a password that can only be unlocked with a proprietary scanner. The technology provides product tracking, traceability, and anti-counterfeiting
applications.
Digimarc currently offers digital watermarks, which are created by subtly modulating the pixels in the label artwork
Serving the US market for nearly a decade, RM Machinery (RMM) proudly brings our expertise to Canada’s printing industry. We deliver the highest quality sheetfed o set, digital inkjet, and flexo printing presses by partnering with the finest manufacturers in the industry.
RMM is the premier distributor in Canada for Mitsubishi, RMGT, and Miyakoshi printing presses; Böttcher rollers, blankets, and chemistry; Standard Horizon finishing systems; GEW UV curing systems and TOYO inks.
The Return of Excellence
For years, Mitsubishi set the superior technology standard for Canadian printers. Today, RM Machinery returns that innovation to Canada, but with an even higher standard: Ryobi Mitsubishi Graphic Technology (RMGT).
We are stable, local, and o er the best-in-class technology. We maintain an ample supply of parts, and for as long as you own one of our supported presses, you are guaranteed ongoing service and support programs that are among the best in the industry.
RM Machinery Inc.
905-238-9797 • 1-855-RMGT-123
5250 Satellite Drive, Unit 9 Mississauga, ON L4W 5G5 www.rmmc.ca
Equipping North America to print.
design at a very low level, so that there is no perceptible structure to it such as what’s seen with an EAN or QR code.
They came about seven years ago, when Digimarc started exploring the use of watermarks for consumer-facing packaging and labels, which would carry the same Global Trade Item
ated by Digimarc founder, Geoff Rhoads, who is also an astronomer. “The concept arose from his work removing noise from digital photos of deep space imaging,” says Stafford.
“The science behind watermarking is quite amazing and by using proprietary Digimarc software, any printed image can
tion, brands now have the strongest defense possible in the fight against counterfeiters,” says Stafford. “This product is supported by our product cloud that allows brands to track every product item through the supply chain, customs inspection and on-shelf via brand inspection agents.”
Improving recycling
Digimarc’s digital watermarks are also durable (i.e. able to be scanned in difficult environments). This means they can be used to collect information about package recycling.
Plastic Taskforce initiative.
“This technology can better help material recovery facilities understand what materials are coming in and how better separate them to make ‘cleaner’ bales,” explains Winpak Director of Corporate Sustainability Phillip Crowder. “The information gathered can also help a brand to understand how much of the packaging is being recycled, and how they can perhaps improve that rate.”
Number as a UPC/EAN code and be scanned by a retailer ‘point of sale’ device. They are being used in North America for brand protection purposes, parts matching, supply chain improvements and front of store efficiency.
Digital watermarks were cre-
have an imperceptible watermark embedded into it, and yet, be easily scanned by a mobile phone app or device that uses our decoding software.”
Digimarc can also combine digital watermarks with QR codes, or RFID or NFC tags.
“Using dual-factor authentica-
When the watermarks are scanned at a recycling depot, the system can access unlimited information, including characteristics of the packaging such as type of plastic or the presence of components that are problematic for recycling. Digimarc has recently partnered with Canadian company Winpak to test this, as part of the Circular
Crowder adds that on the consumer side, these watermarks can also communicate to consumers the environmental attributes of packaging and where to best recycle it, let alone all kinds of information to the consumer about the product itself such as nutritional information and meal preparation ideas.
With more and more innovations like this, it seems smart labels, and the companies that use them, are getting smarter all the time.
Showcasing latest offerings from Kodak, Konica Minolta, and Epson
The Kodak Prosper 7000 Turbo Press can print up to 410 mpm or up to 5,523 A4/letter ppm.
Kodak announces fastest
inkjet on the market
Kodak unveils the Kodak Prosper 7000 Turbo Press. The inkjet web press uses Kodak Stream Inkjet Technology and offers printing speeds of up to 410 mpm or up to 5,523 A4/ letter ppm. Prosper 7000 Turbo supports a maximum web width of 648 mm (25.5 in.) with a variable cutoff length up to 1,372 mm (54 in.) while printing on a wide range of coated and uncoated stocks, newsprint, specialty papers as well as recycled papers.
Epson introduces two new SurePress digital label presses
The Epson SurePress L-6534VW with Orange Ink uses CMYK with white and orange inks to widen the colour gamut.
Epson America introduces SurePress L-4733AW waterbased resin ink digital label press. Additionally, as label converters look for ways to add additional colour gamut to labels without increasing price, Epson is adding the SurePress L-6534VW with Orange Ink to its portfolio of UV inkjet digital label presses.
The SurePress L-4733AW
offers advanced automation and unattended printing features, higher productivity on film substrates and an optional inline spectrometer. The SurePress L-6534VW with Orange Ink uses CMYK with standard high-opacity white ink plus orange ink to widen the colour gamut.
Konica Minolta launches new inline saddle-stitch booklet maker
Konica Minolta to exclusively sell the Plockmatic Group’s SD-435/450 booklet maker.
Konica Minolta Business Solutions U.S.A., Inc., extends its partnership with the Plockmatic Group to launch the SD435/450 booklet maker. The inline versions of the SD-435/450 will be exclusively sold by Konica Minolta throughout 2022 and will be available on its AccurioPress mono and colour production machines. The new system architecture enables customers to produce high-quality booklets including 8.5 x 11 in. landscape and has all the key processes needed to produce corner and edge staple, folding, spine forming and full bleed trimming, all combined in one single, easyto-use system.
Jerry Theoret / president and CEO / Battlefield Press
Battlefield Press, Burlington, Ont., is a third-generation family owned and operated company that continues to evolve and diversify within the printing industry. Since it was founded in 1964, being first has been its mantra. In the ‘60s, Battlefield was among the first in Ontario to offer four-colour printing. In the ‘90s, they led with digital printing and workflow technology. Battlefield was the only printer in Canada to offer 12-colour perfecting on a printing press in 2005. In 2016, they were the first in North America to print on a custom Heidelberg seven-colour UV press that could handle 41.5-in. wide press sheets. That same year they were the first Canadian printer to win Sappi’s Printer of the Year Award. The year 2018 saw the installation of another XL1068P+L equipped with LED-UV, another first for Canada. Recently, it acquired the assets of Clearpak, a leader in the clear plastic folding carton segment. We spoke to the company’s president, Jerry Theoret, about the future of the print industry.
What is the state of the print industry today, in your opinion?
JT: It has been challenging to navigate the consequences of the COVID-19 pandemic. Increasing staffing difficulties and shortages is making it difficult to maintain, let alone grow a business. Many organizations have not survived the turmoil. Since some of them were significant market price influencers the closures have created a healthy competitive environment.
Unavailability of substrates is affecting the industry now. If you can get past these challenges, then there are exciting opportunities to explore and grow the business at a healthy profit margin. The takeaway for me is that the industry is not quiet, and opportunities are flowing. One must work harder, focus on the details and be more creative to be successful.
What attracted you to the print industry?
JT: My father founded the company in 1964. From a young age, my brother and I helped as required. My heart was in sales. The love of bringing in new business and growing the organization ultimately made me stick.
2016
Battlefield Press was the first Canadian printer to win Sappi’s Printer of the Year Award in 2016.
How can the industry attract more young people?
JT: Since youngsters love technology, it would be helpful to highlight on media frequented by young people the technologies used in the print industry. They must be made aware of the opportunities and the size of the industry. Structural solutions are heavily influencing the industry now. Introducing younger minds to the creative requirements for providing solution-based structures/packages will show them the printing industry is not just about ‘graphic design,’ but also creative thinking.
portfolio that is technologically advanced, well maintained, and efficient enough to be versatile and cost competitive. Make sure you are giving your company good exposure to allow buyers to know your companies name. Keep evolving!
What are some of the biggest opportunities in the print industry?
JT: Producing products with special effects and/or embellishments as well as supporting sustainable options that create positive impacts for both the customer and the environment.
What do you think is the most exciting thing about print today?
Differentiate yourself from other companies. Offer solutionbased services. Provide finished products that uniquely fill needs.
In such a competitive landscape, how can printers win more sales?
JT: Differentiate yourself from other companies. Offer solution-based services. Provide finished products that uniquely fill needs. Make sure you are fully aligned with the buyers’ expectations. Maintain an equipment
JT: Technology and growing capabilities available for us as manufacturers are exciting. The possibilities are endless. Ultimately, the industry is based on creativity. Therefore, if you can dream it, it can likely be created. It’s also exciting to see what young people entering the industry bring to the table, and how it allows companies like ours to evolve.
Theoret’s responses were edited for length. For more Q&A Spotlight interviews, please visit www.printaction.com/profile.