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Moscow centre for Avery Dennison

Avery Dennison and Russian distribution company Artmark Label Systems have opened a state-of-the-art distribution centre (DC) to serve label printers in the greater Moscow area and support the growing popularity of self-adhesive labels in Russia. According to FINAT, Russia is one of the “star performers” in Europe – with over 20% growth of pressure-sensitive labelstock in 2010.

The new DC will incorporate advanced technology that will allow Avery Dennison to offer Russian label printers more specialized and custom-made label materials, “as well as solutions for supply chain and environmental challenges“. Customers located within 200km will receive their orders within 24 hours.

Avery Dennison and Artmark Label Systems, who have recently celebrated the 15th anniversary of their business partnership, also operate distribution centres across Russia – in Ekaterinburg, Rostov-on-Don, Saint Petersburg and Novosibirsk .

Dean Scarborough, chairman, president, and CEO of Avery Dennison, describes Russian consumers as “very aspirational – they like brands. We are seeing growth accelerating in the private label market as the Russian retail infrastructure matures – and every major retailer in Europe is now establishing a footprint in Russia.”

Don Nolan, group vice president, Label and Packaging Materials, for Avery Dennison, concurs with the sentiment: “We are here for the long term, and ready to invest when it’s necessary. Self-adhesive labels have proven to be the winning product identification and decoration technology and here – as in the rest of the world – they are particularly popular today for beverage labelling. As well as vodka and other spirits, beer in particular offers great opportunities. It is a huge market in Russia.’

Jeroen Diderich, vice president, sales and customer services, Label and Packaging Materials – Europe, for Avery Dennison adds: “While we are no longer seeing the 15% annual growth rate that characterised the early years of this millennium, the market continues to grow at a healthy 5-10%, and, working with ArtMark, we have more than doubled our volume sales in Russia over the past seven years. I believe that our route-to-market has been the key to our success. In an emerging economy, the major challenge is to be able to establish relationships with local label converters and end users, and here, ArtMark has played a critical role in our success – and continues to do so.

“Most of the pressure-sensitive labelstock business is in paper labels for spirits (there are over 3500 brands of vodka alone), foods, and personal care products, but we are also seeing dynamic growth in pressure-sensitive film labelstocks for clear-on-clear applications. The new DC enables us to offer much-improved inventory levels for these popular products.’

The new facility comprises:

Seven sections in an optimised ‘U’ shape, including administrative offices, receiving and shipping for 3 tons master roll replenishment, warehousing for approx. 11 million squ m.

Three slitters, each delivering a shift capacity of up to 150,000sq m

Two new 2m slitters capable of running paper or film labelstocks, from 15-270 micron thick, and rewinding slit rolls up to 1.2m wide on 3 or 6 inch cores

Capacity for a third 2m slitter when required

One refurbished 1m dual slitter/rewinder capable of unwinding parent rolls of up to 1.3 tonnes

An automated packaging line that can handle, pack, wrap, and sort stack sizes up to 1.3m high and with outer diameters up to 1.2m

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Avery Dennison Fasson