Etiquetas Anro grows

Innovation and investment are the keys to finding long term success in the label industry. In Mexico, Etiquetas Anro believes this is the way writes Danielle Jerschefske

The Silva family purchased its first printing press twenty five years ago, a Mark Andy 810 that is still used today to produce two-color pricing labels as Etiquetas Anro. Since then, the second generation has taken over operations and management to grow the business, reinventing the ‘label’ by acquiring new technologies and adopting modern production techniques to remain competitive. 

Just before the global recession hit three years ago, Etiquetas Anro purchased and installed an 8-color MPS EC3300 (13 inch/330mm) multi-substrate press to further develop business into the prime label market. The MPS machine is fully UV with GEW lamps and is equipped with all the functions. Business in Mexico, like most every market in the world, grinded to a halt, and is still working to fully recover from the massive business hit. Yet, the converter was able to sustain, and even find new clients. Fabian Silva, commercial director says, ‘The market really slowed here and the last few years have been super tough. We were worried about the investment honestly.’

Today, thirty percent of the converter’s business is prime label production on the MPS EC flexographic press.

Etiquetas Anro produces mostly PS materials for a wide variety of markets including the nation’s largest retailers. The machine has helped the converter move into PS film label production for health and beauty products, but business has not moved into unsupported films, which is a possibility for future growth.

A significant share of business is in security printing, producing labels with covert inks and ultra-fine print fonts that allow for anti-counterfeit tactics and track and trace methods. Many of the security labels are produced on a 6-color Nilpeter FB water-based machine. Etiquetas Anro is one of the only verified suppliers in Mexico for one of the nation’s largest retail chains.

Security inks are used to print a black light readable ‘Anro’ on tags and labels. The retailer can use the products as a tracking device to verify which labels are most suitable for deterring counterfeit sales and stolen items. In some cases the converter works directly with retailer’s suppliers because saleable items need be labeled before entering the stores.

The new MPS machine allows the converter’s press operators to produce labels with extremely fine point font allowing even more secure, covert label production to deter counterfeit issues.  

Efficiency and flow

Fabian Silva runs the business as commercial director. Nidia Silva, his sister, works as the human resources manager, and Amin Silva, his brother, helped develop the company into what it now is as the operations manager until last year when he parted ways to begin a career outside of the country. Together the siblings understand the importance of cost control, running speeds and productivity and waste.

Fabian Silva explains, ‘Each machine, finishing or a press, is considered a ‘CC’ or Cost Center including the operator’s wage, facility rent, and other costs that must be factored into production and sales. Each operator knows the ideal production speeds and are trained to run the machinery as efficiently as possible. With this system, profitability is effectively measured across these marks.’ The system helps management gain a better understanding of true cost and helps to find areas for improvement whether it is operator training or capital investment.

An investment was made in a core cutter to find efficiencies in the operation. The business only requires a small inventory and it’s easier to store large tubes and cut them down to size when needed.

A conveyer belt has been used for a number of years to help move finished products into the packaging department to speed preparation for shipment. Silva explains that the company has done a lot of work to improve the flow of the current plant, which has been in use for four years and still has room for growth. Operations choose flexible dies 98 percent of the time because of the reduced cost and improved changeover speeds found with the technology.

Like many converters in the last couple years, Etiquetas Anro has increased its focus on inventory control by closely working with material suppliers Avery Dennison, 3M, Green Bay Packaging and UPM Raflatac to improve lead times and accurate ordering. In Mexico, converters have a 24 hour lead time with Avery and Raflatac. It has also expanded its storage area to hold products for customers until they’re ready for application.

Sixty employees run two shifts. Assistants help with the set-up of the more complex presses using the ‘pits’ project methodology.  Silva says, ‘We strongly believe in growing our people with the company.’

The converter has created a systematic training program to ensure each individual is provided with the proper training and skill set to move forward. New employees typically start with finishing and then move into a basic rewind station and so on. Marisella is the lead operator on the MPS EC machine, a female that has scaled the ranks within the facility, quickly taking her skill set from less automated presses and translating her knowledge to perform extremely well on the advanced press. 

Soluciones Inteligentes

The converter has been working away in its R&D department to design labels that create differentiation and add-value, both to a brand and to the consumer. In order to promote its capabilities it has printed complex samples with odorous coatings and multiple layers to show clients what its capable of. With the current machines it can run a roll of material through to be printed, and then re-registered the same roll and run it through the press again to create a top layer, peel-away film.

It has created what Silva calls the ‘Magicuento’ or ‘Magic Book’, which is a sheet of material with multiple scenes and stickers with removable adhesive. ‘It gives the kids something to do while mom is still shopping around the store,’ explains Silva. ‘We’re in the process of obtaining a Trademark for the idea because we think there’s great opportunity to apply the complex interactive labels to flexible packaging. It can be combined with a promotional coupon or recipes – anything can be printed to provide the consumer more value by selected a product with Anro specialty labels.’

‘Tarjetas Magicas’ or ‘Magic Cards’ is another Etiquetas Anro development. The Magic Cards are coated with a proprietary water-soluble coating that disappears to reveal an image. Here the cards can be used for kiddie fun or serious security with foiling and other covert applications combined. Again, this type of label can be used in conjunction with promotional tickets and with scratch-off coatings to enhance the consumer experience in the store and at home while the product is in use.

Silva says, ‘We really try to understand the need of customers and apply this knowledge with our technicians and managers to develop new applications to solve problems they never knew they had.’

Moving forward the converter might move into shrink sleeve production. But its next investment will most likely be in plate making equipment, mostly because of the speed to production; also, since ninety percent of platemakers in Mexico are in-house shops, bringing plate production into Etiquetas Anro will improve plant security and its ability to service clients with confidential services. Operations management is currently reviewing the Kodak and DuPont equipment.

Silva concludes, ‘We produce add-value products that can cost a bit more, but believe that our clients will pay because they want what Anro has to offer.’

Ametiq

Fabian Silva was elected to be the president of the Mexican label association AMETIQ in October 2011.

Pictured: Marisella with Silva next to the MPS machine

This article was published in L&L issue 6, 2011