CCL Label, a world leader in labels and packaging, announces the inauguration of a brand-new production facility for shrink sleeve labels in Tibi, Spain near Alicante.

“We are very excited to offer shrink sleeves produced in Spain for local brands and multinational brands operating in Spain. Investing into local production follows CCL’s strategy to stay close to the production sites and filling lines of major food and beverage as well as home and personal care brands and service them locally and efficiently”, explains Lukas Nachbaur, Commercial and Technical Director at the new facility. “Our first brand customers have placed and received orders and were happy with the quality and service.”

Modern printing technology for premium shrink sleeves

“The investment in this greenfield facility is a commitment to the growing Spanish consumer products market. There are many great brands that call Spain their home and the country has a proud tradition to produce outstanding high-quality food and drinks including beer, wine and spirits”, Reinhard Streit, VP and Managing Director Food&Beverage at CCL Label points out. “We installed state-of-the-art assets to service these premium brands in the best way possible – we see that we can offer our customers very special printing technology that is unique in Spain.”

The installed assets offer customers premium printing technology. The combination of offset and gravure printing offers customers the greatest flexibility when it comes to changing designs frequently.

Award-Winning floatable EcoFloat sleeve technology a focus

Although all shrink sleeve materials will be available, there will be a focus on the award-winning EcoFloat shrink sleeves made from polyolefin that are approved for PET, HDPE and PP bottles and containers and have been embraced by renowned brands.

Shrink sleeves are applied by heat and conform to a variety of container shapes, acting like a second skin. They are made from floatable low-density polyolefin material, which is at the forefront of sustainable shrink sleeve technology. The design of the sleeves allows for easy separation from the primary container during the recycling process, thus supporting material separation and enhancing recycling efficiency.

“Just as other European countries, Spain will have to deliver on the ambitious new packaging and packaging waste (PPWR) regulation. The regulation also includes mandatory Design for Recycling and our low density, floatable EcoFloat polyolefin sleeves have been endorsed by several recycling associations like RecyClass and the European PET Bottle Platform (EPBP),” says Marika Knorr, Head of Sustainability and Communication at CCL Label. “PET bottles that are combined with a EcoFloat sleeve are fully recyclable and this helps increase the yield of food-grade PET resins, that then can be fed back into new bottles – closing the loop. Mandatory recycled content targets are also an integral part of PPWR legislation.”

Sustainability a priority at production site

The sleeve production will be ultimately be co-located with the In-Mould Label production site (formerly Creaprint) that was acquired about a year ago. The IML Business is expected to move to the new site in Tibi in 2026.

“IML is a rapidly growing decoration technology. The label becomes an integral part of injection or blow moulded plastic containers without the need for adhesives, typically using the same resin material as the container for easy recycling”, comments José Vincente Guillem, general manager of the CCL Spain IML plant.

In recent years, the carbonates industry has undergone a transformation in its product portfolio driven by evolving consumer preferences, changing regulatory measures such as sugar taxes, and increased concerns about health. This transformation trend has been quite visible since the onset of the COVID-19 pandemic, as consumers became more conscious about the impact of sugary drinks on their health. In response to these shifts, companies are investing more in developing new products, with a focus on developing low- or no-calorie carbonates by using sweeteners as alternatives to traditional sugar, says GlobalData, a leading data and analytics company.

Guida Simoes, Consumer Analyst at GlobalData, comments: “One of the prominent categories in the carbonates space is diet sodas, which are popular drinks around the world, especially among people who want to reduce their sugar or calorie intake. Almost every popular sugary drink on the market has a “light” or “diet” version – Diet Coke, Coke Zero, Pepsi Max, Sprite Zero, etc. Despite their appeal to calorie-conscious people, the effects of diet drinks and artificial sweeteners on health are controversial.”

In response to the evolving trend, major players are constantly innovating and creating different flavors for zero-calorie drinks to attract more consumers. For example, in April 2023, Coca-Cola announced a zero-sugar variant that offers “bold and delicate” flavour profiles during the launch of the Coca-Cola Movement in Spain. Stated to be a collaboration between “Coca-Cola – a beverage company and Rosalia – a Spanish singer”, this launch aims to attract more consumers with healthier products, with sugar-free and calorie-free products in mind.

In 2023, in Western European countries, the market share of low/no-calorie drinks is approximately 34 %, with the UK leading at 54 %, followed by Spain at 45 %, Italy at 18 %, France at 25 %, and Germany at 26 %^*. This diversification highlights the varied consumer preferences and market dynamics within the region.

Simoes continues: “Moreover, the interesting correlation between the percentages in the market share of low/no-calorie drinks and the levels of health concerns, as shown by the GlobalData 2023 Q4 consumer survey, adds depth to our understanding. Countries with higher market shares, notably the UK and Spain, demonstrate a higher percentage of consumers 38 % and 42 %, respectively, expressing extreme or significant concern about their health. This showcases a relationship between consumer behavior and evolving product preferences, suggesting that health-conscious individuals are more inclined towards adopting low/no-calorie beverages.”

Simoes concludes: “Tailoring approaches to cater to health-conscious demographics, particularly in markets like the UK and Spain, presents a promising opportunity for growth. For businesses, they can adjust their marketing strategies and innovate products that appeal to consumers who are mindful of their health.”

^*GlobalData Consumer Intelligence Center – Market Analyzers, accessed in December 2023
**GlobalData Q4 2023 Consumer Survey, published in December 2023, was conducted with 9068 respondents in Europe