Avery Dennison Corporation (NYSE: AVY) has completed the acquisition of Vestcom for the purchase price of $1.45 billion, subject to customary adjustments.
As consumers are blurring the line between physical and digital retail, the shelf edge and automation of physical product data has become increasingly important. Bringing together two companies that lead their respective industries, the acquisition will drive innovation and revolutionary solutions for the food industry that combine shelf pricing, promotion, and Intelligent Labels capabilities.
The announcement marks a new chapter for Avery Dennison, which for decades has led the adoption of automation technologies in the food industry with their Freshmarx® Solutions, particularly in grocery. From the original price marking labeler to the development and rollout of the barcode to driving new capabilities for inventory and traceability with intelligent labels, Avery Dennison has developed best-in-class solutions to meet the evolving demands of both the food and logistics industries. The addition of Vestcom brings new capabilities to drive similar automation and data management capabilities to synthesize and streamline store-level data and deliver item-specific, price-integrated, and promotional messaging at the shelf edge, a critical point of decision in-store.
Earlier this year, Avery Dennison announced its acquisition of ZippyYum, a company that builds intuitive, world-class applications focused on automating operations and inventory management, which advanced the company’s commitment and capability to drive greater operational automation and transparency across the food supply chain.
Through this new acquisition, Avery Dennison and Vestcom will accelerate their respective solutions, and combine inventory availability, price management, and frictionless checkout to offer a complete solution across multiple U.S. retail channels, including grocery, drug, and dollar, offering each a better shopper experience for the consumer. This news is significant to the food industry because of the new, combined capabilities:
Bring physical data from every carton, product, and shelf into the digital world to provide end-to-end capabilities, providing an unprecedented opportunity for food retailers to build digital capabilities for price and inventory optimization and consumer experience.
Enhance in-store price promotion capabilities by creating more opportunities for demand creation within the store, further digitizing elements of the supply chain, and adding an additional printing and distribution footprint.
About Avery Dennison
Avery Dennison Corporation (NYSE: AVY) is a global materials science and manufacturing company specializing in the design and manufacture of a wide variety of labeling and functional materials. The company’s products, which are used in nearly every major industry, include pressure-sensitive materials for labels and graphic applications; tapes and other bonding solutions for industrial, medical, and retail applications; tags, labels, and embellishments for apparel; and radio-frequency identification (RFID) solutions serving retail apparel and other markets. Headquartered in Glendale, California, the company employs approximately 32,000 employees in more than 50 countries. Reported sales in 2020 were $7.0 billion. Learn more at www.averydennison.com.
Vestcom is the industry leader in technology-driven shelf-edge media solutions for Retailers and CPGs. Its data-integrated media solutions engage shoppers where it matters most – the point of decision – increasing sales and loyalty. Vestcom’s patented shelf-edge innovation has been trusted by top retailers for more than 30 years to drive productivity and profitable growth. Learn more at www.vestcom.com.