Press article Our Industrial Adventure Continue

Despite a downturn in the label market in 2023, this group continues to invest in businesses, machinery, and people.

While the label market is attracting investors, Stratus Packaging has been determined to maintain its independence to successfully carry out its development strategy, focused on innovation and sustainable development. During an interview held in Viriat this summer, Isidore Leiser, the president of the group, agreed to answer our questions to shed light on his strategy and discuss the latest news of the group he has been leading for seventeen years.

Caractère: Could you briefly introduce Stratus Packaging to us?

Isidore Leiser: Stratus Packaging is an independent group specializing in adhesive label printing, in-mold labels (IML), and shrink sleeves. Our group generates a turnover of 89.3 million euros, with a workforce of 450 people spread across seven production sites, six in France and one in Switzerland. Over 80 million square meters of labels are processed each year. The company operates 59 printing lines and 40 control lines, nearly all of which are equipped with camera inspection systems, allowing us to guarantee the final product’s quality.

C.: What’s currently happening within the group?

I.L.: We just celebrated the group’s 50th anniversary. On this occasion, we organized an open house event last June at the Viriat site, home to Stratus SEEC (see photos on page 32). Guests were able to discover the diversity of our machinery in prepress, printing, and finishing, from which both adhesive labels and IML are produced. Our expertise in recycling, eco-responsibility, innovation, RFID, and shrink sleeves was highlighted through themed tours. Alongside the tours, we organized a grand evening event where all the group’s employees were invited. It was an opportunity to thank them for their commitment and enjoy a good time together.

C.: Why did you choose to celebrate the group’s anniversary at the Stratus SEEC site?

I.L.: It’s the birthplace of the group. My father launched the Stratus Packaging adventure in 1986 by acquiring SEEC, a company specializing in labels. So, it’s here where our industrial journey began and where many projects later took shape. Today, Stratus SEEC is the group’s largest site, with 140 employees. It has two distinct factories: one dedicated to digital and flexo labels, and the other specialized in IML manufacturing according to BRC standards.

C.: What recent investments have you made at this site?

I.L.: We’ve just installed a 7-color Bobst M6 flexo press with a 670 mm width, operating in multichrome, which makes it ideal for IML and shrink sleeves. Last year, we also invested in an ABG Digicon digital finishing system to support our HP 6800 and HP 25000 presses. Across the group, I would say that automation is also a continuous area of evolution. In both flexography and digital printing, our machines are becoming increasingly connected. That’s why we’re currently working on implementing a new ERP system, which will allow us to continue this connectivity and artificial intelligence approach.

C.: Besides flexography and automation, have you continued your investments in digital printing within the group?

I.L.: Yes, we have indeed strengthened and modernized our printing capabilities by acquiring two HP Indigo 6K digital presses, one for the Limoges site and another for the Swiss site, installed respectively in May and this summer. Two ABG Digicon finishing lines have also recently been added to the Stratus Digital Nord and Limoges workshops, which are exclusively specialized in digital printing. Apart from these two sites, the other factories work with both flexography and digital printing. We consider both processes to be complementary in meeting our clients’ needs most effectively.

C.: You have recently made two agreements with leading European players. Why?

I.L.: In the face of increasingly powerful groups emerging across Europe, we found it beneficial to form partnerships with independent European companies. In March 2024, we signed an alliance with Geostick, one of the leading adhesive label manufacturers in the Netherlands, and Nordvalls, a Swedish company with a turnover of 100 million euros and 300 employees, structured as a foundation. This strategic alliance allows us to consolidate our market share and strengthen our presence in the European market while also innovating and improving our service and product offerings. Moreover, this partnership facilitates the sharing of skills and expertise related to equipment and procedures, aimed at enhancing efficiency. It will also enable each label manufacturer to expand its offerings and propose products that are not always within their own expertise.

C.: Many companies choose to align with investment funds. Have you been approached?

I.L.: Of course, we’ve been approached, but for now, I’m not in favor of it. I need to be aligned with a long-term project or strategy that makes sense for the company and our clients. For instance, I believe that investing in innovation is crucial to helping our clients face the environmental challenges ahead. As we demonstrated during our open house event, Stratus Packaging offers numerous innovations, but the return on investment often takes five to ten years, which is too long of a cycle for investment funds.

C.: What is your strategy regarding external growth?

I.L.: We have projects, but we must remain cautious and continue to progress at a manageable pace. A year ago, we made a significant move by acquiring Décomatic, a company with 120 employees specializing in label, sleeve, and pouch manufacturing, with a turnover of 18 million euros. In 2022, we made our first investment outside of France by acquiring Koch AG, a company of 45 people located in St. Gallen, Switzerland. In the coming years, Stratus Packaging will need to pursue its external growth strategy, particularly abroad, with companies that share our values and allow us to establish ourselves in new territories.

C.: How do you see the evolution of your main market, which is the food label industry?

I.L.: The market has been destabilized by several crises. After COVID and its unexpected positive impact on volumes, the paper crisis in 2022 triggered overstocking by brands due to fears of shortages. This led to a fairly logical decline in demand in 2023. Meanwhile, the global economy was hit by inflation, leading to a decrease in the consumption of food and cosmetic products. All of this has caused anxiety and a certain level of hesitation among our clients. The uncertainty surrounding the PPWR (Packaging and Packaging Waste Regulation) has only exacerbated the lack of visibility. Such a law, however, requires support, as packaging will evolve, and labels will also need to adapt.

C.: You mentioned change. How are you supporting this ecological shift?

I.L.: There is a strong demand for more eco-friendly products, which we meet by offering a wider range of recyclable materials. It’s also about printing in the most environmentally friendly way, for example by using multicolor printing to avoid ink changes, or by using digital printing to minimize waste and eliminate the need for printing plates. Energy-saving solutions are also a focus of working groups in each factory. To enhance our environmental position, we now offer on-site collection of release liners at certain clients’ locations. This complements the waste recovery actions and the removal of CRM products that companies have been pursuing for years. Finally, all our sites are Imprim’Vert certified, and Décomatic is ISO 14001 certified.

C.: Are you facing recruitment challenges like many of your peers?

I.L.: Yes, recruitment is indeed one of our challenges. The label industry is a niche sector that’s not very visible and is often associated with printing, a field that struggles to attract and retain talent. When a nearby printing company closes, we are unable to attract their former employees. We should collaborate more with print industry representatives to facilitate skills reassignment. We have strengths to offer. At Stratus Packaging, we promote a good work-life balance with 4.5-day weeks or alternating 9-day schedules for office staff, and we adapt production cycles to operators’ preferences. Every new employee is assigned a mentor with a personalized onboarding plan. Inclusion is also a topic we pay the utmost attention to.

A GROUP COMPOSED OF SEVEN PRODUCTION SITES

• Stratus SEEC. Located in Viriat (01), this company, founded in 1973, operates across two production sites: one dedicated to labels and the other to IML.
  Workforce: 140 people.
  This address also serves as the group’s headquarters in France.
• Stratus décomatic. Based in La Verpillière (38), this company, acquired in 2023, specializes in the production of stretch sleeves, booklet labels, and pouches.
  Workforce: 120 people.
• Stratus Etinord. Located in Hem (59), this site, integrated in 2000, focuses primarily on food labels and high-volume production. The factory is BRC (British Retail Consortium) certified.
  Workforce: 40 people.
• Stratus Digital Nord. Situated in Avelin (59) but legally attached to Hem, this site specializes in digital printing. Formerly known as Etanord, it was acquired in 2019 after the failure of the Tillinvest group, and it was Etinord’s main competitor.
  Workforce: 20 people.
• Stratus Health & Beauty. Located in Saint-Priest-en-Jarez (42), near Saint-Étienne, this company, acquired through the purchase of JPL in 2017, specializes in label manufacturing for the beauty and health sectors.
  Workforce: 25 people.
• Stratus Martin. Located in Feytiat (87), near Limoges, this company, acquired in 2001, is dedicated to digital printing.
  Workforce: 40 people.
• Koch AG. Based in St. Gallen, Switzerland, this company, acquired in 2022, produces adhesive labels, both in flexo and digital, for the food, pharmaceutical, and cosmetic sectors.
  Workforce: 45 people.