Label supplier reports mixed results in Q2 sales.

 

The impact of the COVID-19 pandemic on office products suppliers has been highlighted in the second quarter results presentation by global label specialist Avery.

 

Avery’s Canadian parent CCL Industries said event badges, kids’ labels and core products for traditional distribution channels were all severely impacted by the pandemic lockdowns, especially in April and May.  

 

WePrint label growth and e-commerce sales were strong throughout the quarter, however, Avery’s overall sales were down 28 per cent. 

 

Geoffrey T. Martin, CEO of CCL, said: “Our main focus since the onset of this pandemic has been the health and safety of all employees while retaining supply chains able to respond to customer demand in essential industries. 

 

“Our people coped with dramatically varying new business conditions as some product line demand almost evaporated, while others more than doubled. We responded accordingly, respecting the many new operational protocols needed to keep people safe. 

 

“Our global business teams have simply excelled in the crisis. Consolidated sales declines were not as severe as anticipated, while profitability benefited from strong productivity, swift cost-saving initiatives to match activity levels and, to a lesser extent, government support where available. The second quarter sales cadence was highly unusual: tough in both April and May with June above prior year, partly aided by two additional work days.” 

 

Avery introduces ‘pick and mix’

 

Avery Australia has implemented a ‘pick and mix’ format, aimed at a consumer segment that is seeking to purchase 1-20 sheets and who have not bought Avery labels due to larger quantities or cost factors.

 

One dealer who contacted Office Products News, questioned Avery’s claim that its current network did not have the “time or want” to service the ‘pick and mix’ format.