Many European countries are quite familiar with returnable bottles. In France, the idea of taking your empty bottles and getting money back is viewed as either old-fashioned or taking ecology too far. This idea is having a trial run in a couple of French provinces, and so far popular enthusiasm has been underwhelming. But give it time. Label converters don’t have time: they have already started developing wash-off labels, particularly important for bottles. The choke point, in every sense, is the wash-off station, where label and adhesive slime gunges up the works.

German packaging industry looks a bit less gloomy

The annual report of Germany’s paper and packaging industries makes almost hopeful reading. This is particularly evident in the packaging papers segment, which recorded a production increase of 5% to 12.3 million tons, as well as in technical and specialty papers, which rose by 1.2% to 1.4 million tons. 

Overall production across all main grades grew by 3%, reaching 19.2 million tons. But if volumes were up, sales were down by nearly 3%. Now that Germany has a government, the packaging industry was not slow to appeal for help: “The year 2025 must become a year of relief for energy-intensive industries in Germany. Political debates have been sufficient – now decisive action is required,” urged the association president, Hans-Christoph Gallenkamp. This latest annual report puts the blame on significantly higher production costs, driven by steep increases in energy, logistics, and raw material prices. 

And it’s not just Germany. The European package and paper sector is blighted by weak European demand and overcapacity coming on top of a tariff-strangled export business. At the same time, the requirements for sustainability and digitalization are increasing. The EU Packaging Ordinance (PPWR) and national regulations demand more recycled content, take-back obligations, and design-for-recycling. 

For many companies, however, the necessary investments are almost impossible to make – especially if they lack the financial cushion or if their banks are reluctant to lend. Insolvencies are on the rise. A further market shakeout is expected in the coming months.

Fedrigoni looks to US for its AI solutions

Fedrigoni, based in Verona, Italy, is famous as a producer of self-adhesive labelstock and other specialty papers. It recently announced a long-term partnership with US tech company Palantir Technologies. According to a joint statement, this strategic alliance aims to accelerate Fedrigoni’s digital transformation by leveraging advanced AI capabilities and Palantir’s innovative solutions. 

Initially focused on stock optimization and demand forecasting, the partnership is now expanding to support Fedrigoni’s comprehensive digital transformation objectives. According to both companies, this partnership underscores the growing importance of digital transformation in traditional manufacturing sectors and highlights the role of AI in driving innovation and efficiency.

Schreiner takes top prize in FINAT competition

Schreiner’s award-winning Smart Syringe Box uses electronics to document the removal of each syringe from the box. Relevant data, such as which syringe was removed and when, are stored and can be transmitted in real time to a database. Temperature monitoring and tracking also ensure maximum safety and traceability. 

“This award shows how important intelligent packaging is for the future of clinical research,” says Schreiner’s Jens Vor der Brüggen, head of research and development.

CEO Roland Schreiner adds, “The FINAT Award confirms that our innovative products not only meet current requirements but also set new standards for the future.” 

These syringe boxes don’t come cheap, but then neither does reliable medical evidence when patients’ lives may be at stake.  

Love at first sight  

Multistampa, based in Limena, Italy, makes labels and has a long-term association with machinery supplier Cartes that traces back to 2020. In February of that year, Multistampa installed a Cartes GT360 screen printing and embellishment line, and it was “love at first sight,” says Cartes’ Enrica Lodi. 

Shortly after, three more Cartes lines followed, one of which is fully equipped with the digital embellishment system Jet D-Screen. The introduction of Cartes technology helped Multistampa to triple its sales in just two years. And today, five years later, Multistampa is preparing to install its sixth Cartes machine.  

The new machine is a Gemini GE364 E-LINE, combining digital embellishment, laser diecutting, inspection and packaging systems, and a semi-automatic roll change system. “Energy efficiency, combined with digitalization and waste reduction, makes Multistampa a highly  sustainability-oriented label manufacturer,” says Lodi.  

Greenwashing? Us? Never!

Several soft drink manufacturers, including Coca-Cola, have run into trouble with the European Commission for the eco-friendly claims made on labels, in particular the labels of PET bottles, which claim “100% recycled” or “100% recyclable.”

In the European Union, bottle caps cannot be made from recycled plastic, for food safety reasons. Labels, meanwhile, are not frequently made from recycled plastic. And the use of virgin plastic in the body of the bottle is still frequent. According to certain NGOs, Coca-Cola’s promise creates “a false impression of total circularity.”

On May 6, 2025, the European Commission confirmed that Coca-Cola and others must change their labeling. The beverage makers must ensure that PET bottles labeled “made from 100% recycled plastic” will not contain materials derived from virgin PET or virgin PET offcuts that have been reused without undergoing a recycling process.  

In addition, new wording will specify that only the bottle, excluding the cap and label, is made from recycled plastic, or the words “Recycle me again” will become “Recycle me.” If that sounds like nitpicking, remember the European Commission is a nitpicker’s paradise.  

End of a six-year battle

Readers with long memories may remember the 2019 closure of UPM’s plant in Rouen. The factory processed recycled paper but was losing money, according to the Finnish paper group. Nobody was interested in acquiring it, and the factory should have joined the many industrial ruins blighting the French landscape. 

But history does not always repeat itself, particularly when the powerful CGT trade union gets involved. A handful of workers held on, occupying the plant. In 2022 the local government of the Rouen-Normandy region acquired the land and persuaded two industrialists, Veolia and Fibre Excellence, to acquire the site. 

Veolia is one of France’s leading industrial groups, present in recycling and many other sectors, and Fibre Excellence is France’s leading producer of merchant pulp. But the two investors said they needed public support to finalize their financial package, and after months of waiting and a final letter sent by the local government and the CGT to the Industry Minister in Paris, the government finally caved in and promised a capital injection of 27 million euros of public money (i.e. of taxpayers’ money), plus another 25 million (i.e. of ditto) to help running costs. 

The renovated plant is planned to come on stream in 2028, processing waste papers and churning out raw materials for packaging. The CGT is jubilant: “This example encourages all those who struggle to preserve their workplace,” says a CGT representative. France’s budget deficit is €3,346 billion (nudging $4,000 billion).

The Three pillars of environmental wisdom  

The Alliance Group, which is among France’s largest label converters, has just published results of its multi-year environmental program. The three pillars are: responsible innovation (durable development in inputs and in products), human development (including financial transparency, and health and fulfillment of employees), and environmental impact (resources used, waste disposal, and carbon footprint). The program also projects planned achievements for coming years. The full report is available (in French) on the group’s website.  

Not dead yet!  

In the previous issue of Etiketten Labels, your correspondent wrote “Adieu to SMAG,” and at that time it looked farfetched to offer any future to this French manufacturer of finishing equipment for the label sector. SMAG is now in receivership, and the only takeover offer submitted was turned down by the Commercial Court. 

But now CEO and major shareholder Stéphane Rateau has submitted a plan to keep the company going. The company will not escape restructuring. A major job-saving plan is due to be launched, affecting some 10 to 15 employees, which will represent annual savings of 1 million euros. 

“It’s a difficult decision but necessary if we want to save the company and keep as many jobs as possible. This measure will be accompanied by a drastic reduction in fixed and variable costs. SMAG’s overheads are set to fall from 4 to 2 million euros,” explains its chairman. 

“We have orders worth €2.6 million just waiting to be produced, and a favorable decision from the court will enable us to get back on our feet,” says Rateau.  

Keeping up your spirits  

Whichever way you turn the outlook is grim for Europe’s wine and spirits business, particularly if your business is in Spain, France, or Italy. China and the US are Europe’s two major export markets and both are being difficult. In just 18 months, French wine and spirits packaging specialist Mauco Cartex has seen its sales fall by a third, to €11.5 million in 2024. Faced with the scale of its difficulties, this company, which employs 80 people, went into voluntary receivership last May.  

To deal with declining business, this packaging producer had already embarked on a restructuring program. “Things were improving, then in March the US president started talking… and from then on, the fall was brutal,” says CEO Sarah Escat. In her opinion, the US protectionist statements have completely disrupted the wine and spirits markets. At the same time, Beijing introduced a 35% tax on European spirits, in response to the tariffs imposed by Brussels on Chinese electric vehicles. And to cap it all, European consumers, concerned about their health, are cutting down on alcohol.  

Ah well, as they say, one man’s meat is another man’s poison.