Western States grows beyond envelope market

Labels aren’t new at Western States.

The company, one of the largest envelope manufacturers in the US, based in Butler, Wisconsin, has been producing pressure-sensitive labels for 30 years. But for the 118-year-old family-owned business, labels had
remained a small part of its portfolio, accounting for 11-12 million USD, about 11 percent of its revenue.

The company is hoping to grow that side of the business with the installation of a Mark Andy Digital HD hybrid press. The press is enabling Western States to expand its label business, and the company wants to grow its label segment to about 50 percent of its revenue over the next five to 10 years.

Currently, about 60 of the company’s 600 employees are focused on manufacturing labels, with an additional 30 salespeople who sell both labels and envelopes. Its primary end-use markets for labels are beer and wine, food and candles.

‘I’m very thankful that 30 years ago we decided to diversify into labels,’ says Kevin Bayerlein, director of national sales at Western States, and the sixth generation of his family involved in the company. ‘At the time, we wanted to be an envelope company that also sold labels. What I’d like to see is us eventually becoming a label company that still sells envelopes.’

For its entire history, Western States has been family-owned. Currently, Bayerlein and his father, CEO Steve Bayerlein, are the only two family members involved in the company.

‘Envelopes have become a very commoditized market, and labels are very much a solutions-based market,’ Kevin Bayerlein says.

‘You find a solution for a customer; you find an application that’s working for them. You can help them with their brand, and they stay loyal, and they want to stay with you. That’s where we want to go with our business. We want customers to start to look at us as a partner rather than a vendor.’

Label growth

Western States was founded in 1908 by George French Moss, a paper salesman, in Milwaukee, Wisconsin. Throughout the 20th century, the company grew, investing in and patenting new technology, increasing its square footage and acquiring other businesses.

In 1999, Western States entered the labels business by acquiring Four Lakes Label in Sun Prairie, Wisconsin.

Entering the label business was not easy. Western States found the market competitive, and the company needed to learn a great deal about the industry, including its technical aspects, such as materials and adhesives.

Western States also needed to train the Four Lakes Label staff to work with the reseller market, which has historically accounted for the bulk of Western States’ customers.

“Envelopes have become a very commoditized market, and labels are very much a solutions‑based market”

‘We’ve had a lot of training to get our people on the same board, and we’re there now,’ Kevin Bayerlein says. ‘We have a very knowledgeable sales force, and we have very knowledgeable customer service and manufacturing people. Now our biggest
strategy is, how do we grow and how do we keep up with the demand?’

Mark Andy Digital HD

Western States decided to invest in a 13in Mark Andy Digital HD press about a year ago to better serve industries like pharmaceuticals, cannabis, wine and beer that require high-quality small type print.

‘We have a lot of different customers now that are printing multiple SKUs, and so using the digital press, and not having all the different plate costs, makes us much more efficient and competitive,’ Kevin Bayerlein says.

Another draw to the press was its speed. The Mark Andy Digital HD press can run at 400 ft/min.

Western States had a positive history with Mark Andy already. It has several other Mark Andy label presses: two 8in digital presses and a 13in and a 17in flexo press.

Western States also recently switched to Label Traxx’s Siteline program for its online storefront in Q4 of 2025.

Future goals

To continue growing its label business, Western States plans to eventually acquire another label converter. The company currently has six locations in Wisconsin, Ohio, Kentucky, North Carolina and Minnesota and produces labels only at its Sun Prairie facility.

‘We’ll need to add capacity,’ Kevin Bayerlein says. ‘We don’t have enough capacity right now to do 50 million dollars in labels, but that’s obviously what we would like to achieve someday. We’re going to have to make an investment at some point where we buy another label company in another location, and we’re certainly going to have to look at expanding our own plant.’

Bayerlein says that to become known as a label company, Western States must also prove itself more in the market.

‘We need to get to the point where people think of us for labels first, instead of thinking of us as an afterthought,’ he says. ‘The sales force has to continue to drive that into our customers’ heads, and we have to continue to diversify our customer base in order to make that happen.’