Boom in direct-to-consumer sales.

 

Global label company Avery has weathered the worst of the pandemic and is forecasting a return to more “normal” trading conditions after reaching a “low point” in the second quarter.

 

Canadian parent company CCL Industries said that despite the pandemic, Avery continued to deliver the highest return on capital of any segment in the company.

 

However, reported sales fell by CDN$105 million in the full year.

 

After a solid start in January and February, things began to change in March as workplace closures hit, and attendance at sports and music events and conferences and conventions completely stopped. 

 

The company said the Stuck-on-You acquisition in Australia boosted sales internationally while direct-to-consumer label sales through Avery.com and other e-commerce sites boomed.

 

Pandemic education protocols in North America significantly impacted back-to-school demand, especially for binders and indexes, on top of lower use in workplaces, resulting in a sales sales decrease of more than 20 per cent.