One of the swiftest-growing parts of the label market includes beer, wine, and packaged goods. Packaging’s Potential: There’s No Containing It By Jeffrey Steele Commercial printers entering the world of package printing must study the competitive landscape before making the plunge. They must understand the differing equipment, skills, and substrates needed in folding carton and flexible package printing. They must decide whether or not to use their current offset or digital equipment when expanding. Perhaps most importantly, they must believe package printing should no longer be the sole domain of package printers. Yes, there is much to be considered—and mastered—if a commercial printer is to take on the additional challenge of package printing. But many of those studying this opportunity report that for the right print service providers, who are willing to pursue the opportunity in the right way, the payoff can be sizable. So why not leave package printing to package printers? There’s a simple answer to that question, according to Kevin Karstedt, CEO of Karstedt Partners, an Eden, NY-based consultancy that serves OEMs of packages and services, press and printer manufacturers, and packaging converters. The number of commercial printers continues to decline, and unless another revenue stream is found, more are likely to go out of business, he said. But in package printing there is no decline. Package printing generally continues to grow at roughly GDP levels, or about three percent, he said. Avi Basu, Alpharetta, GA-based director of marketing and business development for HP, voiced a similar sentiment. “Some would argue there is excess capacity in printing at the macro level,” he reports. “But the digital component of the print solution and service business is actually growing year over year by double digits,” he said. “Because we don’t have the legacy of conventional printing, we see growth and upside. Commercial printers are hungry for growth and diversification and new opportunities.” His colleague, Marc Johnson, HP’s marketing and business development manager around inkjet, said: “You’re looking at the elimination of the barrier to entry in packaging of much longer run lengths. Easily a third of all bottled beers I see here in craft-beer capital San Diego have digitally printed labels.” Indeed, one of the swiftest-growing parts of HP’s business is the prime label market. Beer, wine, and packaged goods are using HP Indigo-printed labels. “In the past, we heard digital is maybe good enough for short-run,” Basu said. “But last summer, Coca-Cola produced over a billion labels on an Indigo.” Digital was used by Coke to personalize labels with common first names. “Coca-Cola is very finicky about its brand and its quality, and one billion is anything but short run,” Basu said. “This is the big ‘ah-ha.’ Regardless of the printer or the converter themselves, it’s the brands that are demanding this. “They are trying to differentiate their packages on the consumer level. The only way to do that without compromising their substrates or brand colors is to use the only machine that can provide that kind of quality: the HP Indigo.” The technology is best suited to printing packages that differentiate in unique ways. “That’s what brand managers are intrigued about,” he said. Using Existing Equipment Many commercial printers venturing into the packaging space would like to use their existing equipment to do so. Should they pursue this approach? “The easy answer is yes, but the harder answer is maybe,” said Karstedt. “Folding carton production is primarily done on offset printers. The vast majority of small manufacturers are opportunities for commercial printers. They won’t get Kraft, but they might get the local macaroni and-cheese maker. That’s the kind of market you want to go after. Lots of small local brands are opportunities for local printers. If you’re already selling sales flyers, annual reports and business cards to Mama Luigi, why shouldn’t you do her packaging?” 18 Quick Printing | April 2015 MyPRINTResource.com
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