The proliferation of craft breweries in the United States has translated into big business for label converters. In a marketplace where the label on the outside of the bottle often means more than the liquid inside of it, creativity abounds. For craft brewers, standing out on crowded shelves is the name of the game.
According to the Brewers Association, craft breweries comprise 5,234 of the 5,301 breweries in the US. The association reports that there are more than 10,000 such breweries globally. In , craft brewers produced 24.5 million barrels, and saw a 13% rise in volume and a 16% increase in retail dollar value. Retail dollar value was estimated at $22.3 billion, representing 21% market share.
“For the past decade, craft brewers have charged into the beer market, seeing double digit growth for eight of those years,” said Bart Watson, chief economist, Brewers Association. The Brewers Association adds that more than 800 craft breweries opened in alone.
Jeff Greenlief, craft beer product and business development manager at Avery Dennison, says that there were 4,269 craft breweries in , a jump from 3,722 in . He adds that 75% of people of legal drinking age live within 10 miles of a craft brewery.
The Demeter Group conducted a study that predicted that 15% of the beer market would be made up of craft beers by . In , craft beers grew by 18% in volume and 22% in retail, the study said.
Leaders within the label industry have taken notice of the craft beer boom. “The craft beer market has been growing steadily in recent years and doesn’t seem to be slowing down, making it a prime market of interest for converters looking to diversify their portfolio,” says Nat Davis, product manager at Mark Andy. “Based on the market interest shown by our customers and prospects, the indication is that this growth trend in the segment will continue into the near future.”
Based on the numbers, there is a huge opportunity for label printers to cash in on a thriving market. “The craft beer industry has exploded over the past few years, with new breweries opening each day, and there is a sizable portion of those in Massachusetts,” explains Ashley Obara, marketing manager at Westfield, MA-based Dion Label Printing. “Dion Label Printing has seen a rapid influx of craft breweries in need of labels and shrink sleeves for their bottles and cans.”
“In the craft beer market, as with all markets, labels and packaging play a huge role in getting the consumer to make a purchase,” explains Jackie Kuehlmann, director of marketing at Inland, a Wisconsin-based label manufacturer. “Brand owners are finding themselves incorporating more and more specialty enhancements, personalization and connection to social to draw consumers in.”
According to Jessica Johnson, sales and marketing coordinator at Constantia Flexibles, the surge in craft beer labels has brought labeling as a whole into the public eye. “The craft beer industry has been growing substantially over the past six years,” she says. “There have been a lot of craft beer companies who started up just a few years ago and have been beyond successful. This has really brought a lot of attention to the label market with the rise of more and more potential customers within the craft beer industry. Also, this market has been backed by the major macrobreweries investing in the craft beer market.”
“Craft beer labels have evolved into an art form of sorts,” explains Chris Erbach, marketing communications manager, Weber Packaging Solutions. “The best way to differentiate your brand from the next one is to design a memorable label. Many of today’s craft beer labels are actually done by local artists and are just beautiful. Okay, some are funny and some are plain bizarre, but you remember them, right? The market keeps growing as new materials and ideas try to keep things fresh.”
There are a plethora of materials that have enabled craft brands to stand out on the shelf, too. According to Kuehlmann, craft paper stocks have always been popular, as graphics pop off the substrates. However, other materials, such as white paper and white film, can replicate the same kind of eye-popping graphics. “Films are becoming increasingly popular because they tend to allow for more options with specialty inks and coatings,” she adds.
UPM Raflatac finds that its most popular materials for this market include 2.6 mil to 2.4 mil PP, 50# 100% PCW wet strength paper. The company has noticed that its craft beer portfolio has improved in several ways. For starters, there are targeted applications for wet and dry processes. “There are some very demanding brewery processes that require quick stick adhesives for both film and paper labels,” says Jean Willson, segment manager, Wine, Spirits, & Craft Beverages at UPM Raflatac Americas. “Other breweries require a permanent adhesive for dry labeling, and we want to support the different applications as needed.”
UPM Raflatac also presents its customers with the option of a down-gauging portfolio, which allows for greater manufacturing efficiencies. “Customers can go from 2.6 mil to 2.4 mil to 2.0 mil and then on down to ultra-thin clear materials like 1.2 mil Vanish and 0.92 mil Vanish,” adds Willson. “Down-gauged materials are also available for metalized films and white PP.”
“Due to variety and smaller volumes, a lot of craft brewers start off using cut and stack because – from a startup cost standpoint – it is more affordable,” explains Johnson. “Pressure sensitive is becoming more popular, as well as digital printing. Digital is starting to infiltrate more into this space by offering more variety for all of the craft beers’ small volumes and SKUs.”
In order to stand out on the shelf, many craft brewers are relying on label design and shape. “Bright, vibrant colors or designs that play-off pop culture instantly draw customer interest,” says Obara. “In regards to shape, the rectangular label is quite popular, so utilizing a custom shape, such as a diamond shape or a cutout, can be a great distinguishing factor.”
Big brands vs. craft beer
In order to flesh out the characteristics of a successful craft beer label, it is important to note the difference between craft beers and those of major retailers. “Craft beer” generally refers to four types of brewers that manufacture less than six million barrels of beer per year: microbrewery, brewpub, contract brewing company and regional craft beer.
Craft beer labels differentiate themselves from major beer vendors and other drink labels in several ways, and it is an industry that relies on visual appeal just as much as product quality.
Constantia Flexibles’ Johnson describes craft beer as a different category from the rest of the beer market. Craft breweries are often unique to regions, styles and flavors that rely on various SKUs. These beers will also feature creative names, branding and experimental flavors to make their label stand out on shelf against the biggest names in the greater beer market.
“In general, craft beer is a more specialty and freeform industry than the major players in the beer market,” explains Dion Label’s Obara. “The product is crafted in smaller batches, with more daring flavor combinations, and sold at a higher price point. The labels need to fit in with all of those elements to make the product look visually as good as it tastes. Graphically, labels often push the envelope using bold patterns, hand drawn or custom designed images and a material that embodies a high-end product such as a label with a smooth matte finish.”
According to Kuehlmann, the label’s design is one of the biggest differentiators. “Craft beer labels have always been a bit more ‘fun’ in terms of creative designs and the use of specialty papers,” she says. “We are seeing even more now with specialty inks, coatings and other effects that make these labels really stand out.”
Kuehlmann also cites a recent Nielsen “Craft Beer Category Design Audit,” which states that the appearance of a craft beer label goes a long way in the purchasing decision. The study says that 66% of craft beer buyers say that a beer’s package/label design is “very” or “extremely” important for getting them to notice it in the first place, and 60% say that a beer’s package/label design is “very” or “extremely” important in convincing them to give it a try. Another 71% will experiment with a craft brand that features bold or interesting packaging.
Weber Packaging’s Erbach adds that materials and speed serve as key differentiators, as well. “Craft beer isn’t produced at the quantity and speed of the major breweries. The big guys usually use glue-on paper labels applied using sophisticated equipment at high speeds. These labels generally loosen up when exposed to water – say in a cooler for a few hours – but they get the job done, and cheaply. Some companies are experimenting and starting to use film labels, but that is still the exception. Craft beer companies usually use laminated paper labels or film labels that are waterproof. They can be applied using modest equipment at slower speeds. This is more cost-effective for startup breweries and small brewers. And the labels look much better. Many are diecut to shapes, use clear film for effects or even use metallic materials to create highlights.”
From to , the number of breweries in the US has doubled. According to Mark Andy, microbreweries (production of 15,000 barrels or less per year) make up most of that growth. “These entrepreneurs are willing to take risks and see opportunity but also tend to rely heavily on partners to help guide them in ways to differentiate their product,” says Mark Andy’s Davis. “This is a paradigm shift from the major brewers who strictly define the look of the label and are shopping for the best price. So for the converter, the challenge is to remain flexible to support the changing designs and run sizes. Converters need to leverage their ability to add value to the label or packaging for the craft beer, otherwise they may be left behind as the brewer looks for another partner who can better serve them.”
The digital advantage
Craft beers are built on short run labels. Unlike Budweiser or Coors Light, a small craft brewery in Vermont will not run off millions of labels. The demand for customized short runs is particularly high for this industry.
“Digital printing is the most popular print method for our craft beer customers,” says Dion Label’s Obara. “Craft breweries often brew in small batches and require short-run label jobs with multiple SKUs and a quick turnaround time. Dion Label Printing’s HP Indigo WS presses are ideal for short run labels as they require less setup, keeping costs lower.”
New customers will typically enter the marketplace printing digitally, but there is a scenario where they could move some of their work to flexo. If a beer gains popularity and turns into a year-round offering, some jobs might move to more traditional printing methods. In the case of Dion Label, the converter prides itself on the ability to offer both solutions, allowing its customers to grow and develop with them.
Weber Packaging also relies on digital technology, printing many of its craft beer labels on HP Indigo presses. “Digital printing is more cost-effective for breweries doing small batch runs of less than 5,000 labels,” explains Erbach. “When you need more than 5,000, we usually use flexo label presses, especially if printing white ink on clear film for the no-label look.”
According to Mark Andy, digital hybrid technology presents converters with an opportunity that was not available years ago. Label printers can utilize digital printers or presses for these short run jobs, but they can also turn to retrofit technologies or hybrid presses, especially to incorporate decorating and converting options. Historically, this has required the converter to invest in an offline finishing solution, adding steps to the label production workflow.
“With the emergence of digital hybrid technology, bringing printing, decorating and converting into a single pass process is a fitting response to the market’s needs,” says Mark Andy’s Davis. “With digital hybrid technologies becoming more popular and available in different formats – from entry level to production level, and even as a retrofit to existing flexo solutions – converters now have the tools they need to best support these brewers.”
Mark Andy is offering these solutions in the form of the Digital Series and Digital One presses. The Digital Series prints at speeds up to 240 fpm, combined with single pass inline converting. Meanwhile, Digital One is a compact solution designed for short run prime labels. It combines 4-color digital printing with inline converting and finishing. In addition, Digital One is available at a low investment level.
“One of the big problems is that many craft beer companies are just starting up with limited funds,” adds Erbach. “Label and labeling systems can be a fairly large investment. The craft brewers have to find that sweet spot between value, their budget limitations and getting the most for their dollar. This is why digital labels can be a cost-effective way for them to get amazing labels without breaking the bank.”
Trending upward
Craft beer has become a cottage industry, and there is no sign of a slowdown. If anything, the market is expected to expand – great news for label converters.
“We see continued growth in the craft beer industry based on growth percentages since ,” says Dion Label’s Obara. “A small number of craft breweries will inevitably grow rapidly enough that they are purchased by the larger players in the beer industry. However, based on demand for these unique specialty craft brews, we estimate those players being replaced with new and upcoming craft breweries.”
According to Weber Packaging’s Erbach, many craft brands are taking advantage of white or bright colored inks on clear labels to make their images look sharp against a dark beer bottle. “It is close to the effect you get when you have your label silk screened on a bottle but much cheaper,” he says.
Obara adds that customers are favoring labels with a matte finish for a more natural yet high-end look. The labeling of beer cans is another trend that has impacted the craft beer market. Pressure sensitive labels and shrink sleeves for beer cans provide a lower cost option to pre-printed cans.
Since craft brewers often experiment with product information and flavors, it is a lot easier to adjust a label rather than a printed can.
Constantia Flexibles sees several trends emerging in the future. “There are certainly two trends that we have been seeing in craft beer labeling. The first is the use of pressure sensitive labels on bottles,” explains Johnson. “As more craft beer brands consider their future labeling needs, they are moving toward pressure sensitive. We have also seen some pressure sensitive use on a pre-designed can. The second trend we have noticed is shrink on cans. Both of these methods are great ways for craft beer suppliers to meet minimum order quantities for cans but still able to fill them with different styles.”
Inland’s Kuehlmann does caution, however, that the market could lose share to other competitors since it has been booming for a while. “There are so many players,” she says. “This is and will continue to be a challenge especially as other markets, like cannabis, spirits, wine, and more, take share away from craft beer.”
Despite the challenges, the future is still bright for craft beer labels and packaging. “I think we will continue to see more and more original designs and use of specialty inks, coatings and embellishments,” explains Kuehlmann. “It is a fun time to be a printer because there are a lot of really eye-catching things we can do with a label or package, and we are starting to see more and more adoption of these technologies by the brand owners.”
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The American beer industry evolved from the centuries-old European tradition of creating simple, four-ingredient beers. But in the past three decades, a new generation of upstarts and innovators has turned that model on its head, rejecting the mass-market lite-beer aesthetic and embracing new brewing techniques, new flavors and boutique, small-batch approaches.
Fifteen years ago, there were 1,400 craft brewers in the U.S.; today, there are nearly 9,000. Eighty-five percent of Americans live within 10 miles of a local brewery. Craft beer is big business: The global craft beer market was estimated at $100 million in , and is expected to reach $200 million by .For craft brewers, beers represent experiences, “gathering places”—whether you take the form of a physical space, or a gathering around your products. While mass-market producers aim to produce a product and then deliver that product to the marketplace, a craft brewers business is to create a social environment in which the making of and the enjoyment of their product are intertwined. You’re not just creating products, you’re service providers and community builders. And you have unique marketing goals.
In the crowded craft beer market, cultivating customer relationships is key to building a loyal following and spreading brand awareness through word of mouth. For you, beer is more than a drink, it’s an experience. Customers choose your beer for its unique quality and personality, and your package’s visual appeal plays into that experience.Your beer packaging should connect your loyal customers to the brewery experience they’ve come to love—yet when it comes to new customers, their first encounter with your brand might be on the store shelf. When it comes to attracting attention, your product’s visual appeal is as important as the taste experience that you’ve worked so hard to perfect. And the most important part of that visual identity is your label.
Here at Belmark, we’re experts in helping craft brewers execute even their most ambitious creative visions by helping you select the perfect packaging materials, print processes and finishes. Just like you strive to build relationships with your customers, our direct sales representatives are dedicated to providing “all in” service that you can rely on as your business grows.
Craft beer drinkers are particular about their choices; packaging captures their attention and imagination, but also serves the practical purpose of helping them navigate the ever-expanding variety of options on the shelf. Your label gives customers an idea of what they can expect when they crack open that ice-cold can or bottle and take that first sip. Labels may be attention getting, but if they don’t convey the quality and persona of the beer inside, you could miss an opportunity to land your next new customer.
Like most businesses, craft brewers pivoted in when COVID shutdowns led to dramatic declines in the sales of keg beer. To preserve profits, market presence and hard-earned customer relationships, brewers began channeling their volume into packaging. But that was not without its challenges, as brewers faced long lead times for cartons and aluminum can due to supply shortages. On the other hand, packaging created new opportunities to market products in retail channels and gain new customers.
Smart brewers tailor every aspect of their product to give them a distinctive edge over the local competition—from unique flavor profiles to creative packaging that stops beer lovers in their tracks. And with 71 percent of craft beer customers deciding which product to buy at the point of purchase, design and packaging are big branding differentiators.Craft brewers are famous for their bold, quirky packaging, as evidenced by the year’s biggest design trends:
• story-driven packaging (mascot, characters, scenes that span across cans)• quirky product names at the front and center of design• strong typography that carries the brand’s aesthetic• technical, finely-detailed and precise illustrations• organic color blocking and bold, simplistic geometry• vibrant, full-scale patterning• interactive features including augmented reality, QR codes and thermochromic inks
Pressure sensitive labels are popular with agile breweries who need the flexibility of fast lead times and low inventories for limited runs. A pressure sensitive label can signal that your beer is rare or fleeting; major brewers like Samuel Adams have been known to mimic the look of a pressure sensitive label on its cans to convey a “small-batch” feeling.
Craft brewers tend to be environmentally conscious and seek sustainable packaging solutions including refillable growlers, and recycled and recyclable materials. Belmark’s Mindful Solutions labeling and packaging products give brewers a range of sustainable options to label their bottles and cans. Our tru-IMPACT® labels contain 30% post-consumer waste materials, and our eco-READY™ products are easy to recycle, so that label materials can be reused again and again.
“In the beer world, things can change at the drop of a hat. Belmark has been right there with us for any changes, concerns or problems that we have run into…Like most humans, I have made a few mistakes with label processes. Belmark was there to facilitate our orders every step of the way, from conceptualization to finished product. Having a team like Belmark at our disposal takes a huge weight off of the brewery here. The label, being the most visible thing to a consumer, has a huge impact on our product; therefore, we want the best possible product…that’s why we choose Belmark.”
—Andy Hamilton, Director of Marketing and Media, North Country Brewing Company
Unlike mass-market beer, each craft beer is unique, with its own story and persona. Its label is an extension of that identity, and design, color and texture all serve to reinforce it. You’re creating an experience and a connection with your customer that starts on the retail shelf and keeps your branding front and center the entire time the customer is enjoying your product. The great news is, labeling technologies offer more opportunities than ever for breweries to express their creativity and maximize visual impact.
Once you’ve established a design concept and your container choice, it’s all about choosing the label solution that best executes your creative vision and brand identity. Creating a beer label that attracts first-time buyers and contributes to an enjoyable drinking experience comes down to how the label looks and feels, and how it performs.Think about label size, shape and placement. Here, you are spoiled for choice: Go for a wraparound label or separate front and back labels. Choose a traditional shape and size, or create a unique shape with a custom die cut. It’s important to choose labeling that allows you to create a consistent, easily recognizable visual identity across your packaging, from individual beers to cartons and overboxes.
If you are looking for more details, kindly visit Craft Beer Shrink Film.
Color is the design element that makes the most emotional impact and communicates your brand message the fastest, and matching brand colors across products is paramount. But the best label designs can be undone by poor color matching, imprecise registration and inconsistent color rendering. At Belmark, we understand the science of color consistency across our entire line of pressure sensitive labels, shrink sleeves and paperboard cartons.
A beer can or bottle, unlike a wine bottle, is continually in sight and in hand as your customer enjoys your product. Think of this as an opportunity to cement that customer connection and emphasize your brand values through textures and effects. Here’s where you can really make labels work for you: Choose a modern, elegant matte finish; add a premium feel by highlighting design elements with embossing, stamping, metallic effects, foils or fluorescent inks. You’re only limited by your imagination.
Your label’s performance—its ability to maintain integrity under the stress of environmental factors including light, temperature fluctuations, moisture and handling—is a not-so-subtle reflection of the quality of the beer inside the package. Labels should never peel, crack, loosen, run or fade, even in the hot sun or buried at the bottom of a cooler.Avoid potential problems by choosing the correct label materials, adhesives, and inks for your container. Belmark’s experts are always on hand to help you choose the most durable, best-looking label for your beer.
Your main investment in the beginning is perfecting your beer, so consider how you’ll be applying labels to your cans or bottles as you move beyond the tap room to retail space. Hand labeling may be a necessity early on, but the process can often be time consuming and tedious. If your goal is mass production, it’s time to invest in a machine applicator.
Labeling machines are available in manual, semi-automatic and automatic models. Defining your production goals and labeling requirements will narrow your choices.
• Manual labeling machines require a person to physically load and affix each individual label to a container. While this option is safe, portable and immune from power issues, it’s labor intensive and exposes the process to human inaccuracies.
• Semi-automatic labeling machines are generally operated by hand or footswitch; a worker loads bottles or cans onto a conveyor belt and presses a button to apply labels. Semi-automatic machines provide more control and consistency than manual machines, and can be integrated into a production line.
• Fully automatic labeling machines remove the human error factor by extending automation to loading and activation. Automatic machines are available to accommodate a range of container sizes and shapes and apply up to 500 labels per hour.
Labeling machines can range in cost from a few hundred dollars to tens of thousands of dollars. When weighing your options, it’s important to evaluate costs in the context of projected volume, integration with your production line, and overall productivity benefits. No matter how fast you can bottle your beer, your output will be limited by the speed at which you can package it and get it to market. Go with a solution that not only fits your brewing operation’s current needs but can scale with your needs as you grow.
If you’re a craft brewer, you’re likely a small, tight-knit operation, and you have to be an expert in a lot of things, from brewing beer to marketing your products to managing your business. You shift gears on a dime as you continually seek new ways to surprise and delight your customers. Labels shouldn’t have to be another challenge for you to solve; eliminate the learning curve and the concerns by choosing a supplier that understands your challenges and will help you execute your brand vision and get your product to market.
Brewing is a deadline-driven business. When your beer is ready to be packaged, it can’t wait for labels to arrive. At Belmark, speed is a core value of our business. We have the fastest turnaround time in the industry; our lead times run one week, faster if you need it.
At Belmark, when we talk about speed, we don’t just mean speed of manufacturing. We’ll shorten the time it takes to bring your labels from concept to approval to production. We’ll leverage our extensive industry experience and expertise to take that burden off your shoulders. In short: Leave the labels to us, so you can get back to business.
Craft brewers strive to continually offer customers new flavors and different experiences, from seasonal brews to experimental flavors. Frequent small-batch production runs call for low label inventories and short-run packaging solutions.
At Belmark, we have no minimum label order requirements, making it easy for you to sync new packaging with your short production runs.
Consistency is key in beer branding. Customers should be able to identify your brand at a glance, whether it’s in a bottle, can, carton or case. Because Belmark offers a comprehensive, diverse range of pressure sensitive labels, shrink sleeves and carton styles, craft brewers save time and effort by working with a single supplier for all of their packaging needs. And, we ensure perfectly consistent execution of your designs across your entire product packaging range.
When it comes to customer service, at Belmark, we take pride in our “all in” approach. We’re ready to guide you through every step of your journey, from idea to finished product. We’ll help you scale production as your products evolve and your business grows. We’ll make a complex process easy for you, and we’ll do it fast and deliver the quality and consistency you expect. Let us handle your label production so you can stay focused on what you’re best at: making great beer.
Contact us to discuss your requirements of Good Gloss Shrink Film. Our experienced sales team can help you identify the options that best suit your needs.