Transformation thesis · one story · four chapters · 62 terms
Physical labels → Digital identity → Platform → Outcome
Step 1
PHYSICAL
Materials Group · the engine
$6.1B
≈ 70% of revenue
PSA
BOPP
Facestock
Liner
Emulsion adhesive
HVC
+4
President · Hassan Rmaile
Step 2
DIGITAL
Solutions Group · the bet
$2.8B
≈ 30% · fastest growth
RFID
RAIN RFID
UHF
HF/NFC
Inlay
Smartrac
+7
President · Francisco Melo
Step 3
PLATFORM
atma.io · the moat
30B+
digital IDs issued
atma.io
Hedera HCS
Optica
storeLink
Built on Smartrac · Hedera HCS · Optica
Step 4
OUTCOME
Compliance + value creation
EU DPP
ESPR-mandated · 2027+
DPP
ESPR
Scope 1
Scope 2
Scope 3
SBTi
+4
Funded by · EVA · FCF · ROIC
Funded by
Chapter 1 of 4
Materials Group · the engine
Pressure-sensitive chemistry, films and label stock — the cash-flow engine that funds the digital bet.
$6.1B
≈ 70% of revenue
What changes
Stays the engine. Margin expansion via Sustainable Advantage™ + automation. Cash funds Solutions Group + buybacks.
President · Hassan Rmaile
Flagship terms · 10
PSA
Materials
Pressure-Sensitive Adhesive — adheres on contact, no solvent or heat.
BOPP
Materials
Biaxially Oriented Polypropylene — common film facestock.
Facestock
Materials
Top layer of a label construction — receives the print.
Liner
Materials
Silicone-coated release liner that protects the adhesive until application.
Emulsion adhesive
Materials
Water-based PSA — solvent-free, lower VOC.
HVC
Product line
High-Value Categories — wine, spirits, beauty, pharma — premium label stock.
LPM
Product line
Label & Packaging Materials — pressure-sensitive label stock.
IHM
Product line
Industrial & Healthcare Materials — tapes, medical adhesives, wearables.
Sustainable Advantage™
Brand
AD's portfolio of products that reduce material use & footprint.
MG
Segment
Materials Group — pressure-sensitive label, graphics, reflective, tape, IHM. ≈70% of revenue.
2 supporting terms ↓
Chapter 2 of 4
Solutions Group · the bet
Apparel branding + Intelligent Labels — every garment, package and shelf-edge gets a unique digital ID.
$2.8B
≈ 30% · fastest growth
What changes
Scaling RFID from apparel into food, logistics, pharma. Embelex consolidates Lion Bros + Thermopatch + TexTrace.
President · Francisco Melo
Flagship terms · 13
RFID
Tech
Radio-Frequency Identification — tagging items with a unique digital ID.
RAIN RFID
Tech
Industry alliance for UHF passive RFID — the dominant retail flavour.
UHF
Tech
Ultra-High Frequency band (860-960 MHz) — long-range bulk reads.
HF/NFC
Tech
High-Frequency / Near-Field Communication — phone-tappable tags.
Inlay
Tech
RFID antenna + IC mounted on a substrate — the core of a smart label.
Smartrac
Brand
AD-acquired RFID transponder business (2020) — now Avery Dennison Smartrac.
TexTrace
Brand
AD-acquired (2022) woven RFID label specialist.
Lion Brothers
Brand
AD-acquired (2023) apparel emblems & patches business.
Thermopatch
Brand
AD-acquired (2023) sportswear & workwear embellishments brand.
Vestcom
Brand
AD-acquired (2021) shelf-edge media business — paper tags, signage, ESL, storeLink.
ESL
Tech
Electronic Shelf Label — e-paper price display at the shelf edge.
Embelex
Platform
AD's apparel embellishments ecosystem — patches, transfers, woven, connected.
SG
Segment
Solutions Group — apparel branding, embellishments, Intelligent Labels, Vestcom, atma.io. ≈30% of revenue.
5 supporting terms ↓
Chapter 3 of 4
atma.io · the moat
Connected Product Cloud · 30B+ digital IDs, open APIs, Hedera-anchored provenance. The recurring-revenue spine.
30B+
digital IDs issued
What changes
Shifts AVY from product company to platform company. Where DPP compliance lives. Recurring + analytics.
Built on Smartrac · Hedera HCS · Optica
Flagship terms · 4
atma.io
Platform
AD's Connected Product Cloud — 30B+ digital IDs, open APIs, Hedera-backed provenance.
Hedera HCS
Tech
Hedera Consensus Service — immutable timestamping for atma.io provenance.
Optica
Platform
AD's portfolio of end-to-end supply-chain analytics solutions.
storeLink
Platform
Vestcom's centralized shelf-edge orchestration platform.
Chapter 4 of 4
Compliance + value creation
EU regulation is the demand-pull. Financial returns are the proof.
EU DPP
ESPR-mandated · 2027+
What changes
DPP turns ontology into law: every product needs a passport. AVY is the picks-and-shovels supplier.
Funded by · EVA · FCF · ROIC
Flagship terms · 10
DPP
Regulation
Digital Product Passport — EU ESPR requirement for product data over the lifecycle.
ESPR
Regulation
EU Eco-design for Sustainable Products Regulation — parent regulation of DPP.
Scope 1
Sustainability
Direct GHG emissions from owned operations.
Scope 2
Sustainability
Indirect GHG emissions from purchased energy.
Scope 3
Sustainability
Value-chain GHG emissions (suppliers + customers).
SBTi
Sustainability
Science-Based Targets initiative — AD's targets are SBTi-validated.
EVA
Finance
Economic Value Added — AD's headline value-creation metric.
FCF
Finance
Free Cash Flow.
ROIC
Finance
Return on Invested Capital — capital efficiency KPI.
EBITDA
Finance
Earnings before interest, tax, depreciation and amortisation.
8 supporting terms ↓
Reference
Search every term · 62 entries
Or ask in plain English
Full alphabetical glossary · 17 categories ↓
Brand 6
| Term | Definition | Domains |
|---|---|---|
| Lion Brothers ● | AD-acquired (2023) apparel emblems & patches business. | SG.EMBEL.LION |
| Smartrac ● | AD-acquired RFID transponder business (2020) — now Avery Dennison Smartrac. | SG.RFID |
| Sustainable Advantage™ ● | AD's portfolio of products that reduce material use & footprint. | MG.LPM.SUST |
| TexTrace ● | AD-acquired (2022) woven RFID label specialist. | SG.EMBEL.TEX |
| Thermopatch ● | AD-acquired (2023) sportswear & workwear embellishments brand. | SG.EMBEL.THERMO |
| Vestcom ● | AD-acquired (2021) shelf-edge media business — paper tags, signage, ESL, storeLink. | SG.VESTCOM |
Finance 6
| Term | Definition | Domains |
|---|---|---|
| BPS | Basis points — 1/100 of a percent; used for margin changes. | FIN.PL |
| EBITDA ● | Earnings before interest, tax, depreciation and amortisation. | FIN.PL |
| EVA ● | Economic Value Added — AD's headline value-creation metric. | FIN.PL |
| FCF ● | Free Cash Flow. | FIN.BS |
| FY | Fiscal year (AD reports on a calendar year). | FIN.PL |
| ROIC ● | Return on Invested Capital — capital efficiency KPI. | FIN.PL |
KPI 4
| Term | Definition | Domains |
|---|---|---|
| DSO | Days Sales Outstanding — AR efficiency KPI. | FIN.BS.WC COMM.O2C.INV |
| OEE | Overall Equipment Effectiveness — plant productivity KPI. | OPS.PLANT |
| OTIF | On-Time, In-Full — fulfilment KPI. | OPS.LOG COMM.O2C.FULFIL |
| TRIR | Total Recordable Incident Rate — worker safety KPI. | OPS.QHSE.SAFE PEOPLE.SAFE |
Legacy brand 1
| Term | Definition | Domains |
|---|---|---|
| Paxar | AD's 2007 acquisition — foundation of today's Solutions Group. | SG.APPAREL |
Legacy name 2
| Term | Definition | Domains |
|---|---|---|
| LGM | Label & Graphic Materials — historical brand for what is now LPM + Graphics inside Materials Group. | MG.LPM MG.GRAPHICS |
| RBIS | Retail Branding & Information Solutions — the former name of today's Solutions Group. | SG |
Materials 5
| Term | Definition | Domains |
|---|---|---|
| BOPP ● | Biaxially Oriented Polypropylene — common film facestock. | OPS.PROC.FILM |
| Emulsion adhesive ● | Water-based PSA — solvent-free, lower VOC. | MG.POLY.EMUL |
| Facestock ● | Top layer of a label construction — receives the print. | MG.LPM |
| Liner ● | Silicone-coated release liner that protects the adhesive until application. | OPS.PROC.SIL |
| PSA ● | Pressure-Sensitive Adhesive — adheres on contact, no solvent or heat. | MG.POLY |
Person 5
| Term | Definition | Domains |
|---|---|---|
| Danny Allouche | SVP & Chief Strategy and Corporate Development Officer. | STRAT.CORP |
| Deena Baker-Nel | SVP & Chief Human Resources Officer. | PEOPLE |
| Deon Stander | President & CEO since September 2023; joined AD via the 2007 Paxar acquisition; previously ran Solutions Group. | STRAT |
| Francisco Melo | President, Solutions Group (appointed April 2023). Previously ran the Intelligent Labels / Smartrac platform. | SG |
| Hassan Rmaile | President, Materials Group (appointed April 2023). Ph.D. materials chemistry. | MG |
Platform 4
| Term | Definition | Domains |
|---|---|---|
| atma.io ● | AD's Connected Product Cloud — 30B+ digital IDs, open APIs, Hedera-backed provenance. | SG.ATMA |
| Embelex ● | AD's apparel embellishments ecosystem — patches, transfers, woven, connected. | SG.EMBEL |
| Optica ● | AD's portfolio of end-to-end supply-chain analytics solutions. | SG.OPTICA |
| storeLink ● | Vestcom's centralized shelf-edge orchestration platform. | SG.VESTCOM.STORELINK |
Process 2
| Term | Definition | Domains |
|---|---|---|
| CPQ | Configure-Price-Quote — guided selling for complex products. | COMM.PRICE.CPQ |
| O2C | Order-to-Cash — the end-to-end revenue process. | COMM.O2C |
Product line 3
| Term | Definition | Domains |
|---|---|---|
| HVC ● | High-Value Categories — wine, spirits, beauty, pharma — premium label stock. | MG.LPM.HVC |
| IHM ● | Industrial & Healthcare Materials — tapes, medical adhesives, wearables. | MG.IHM |
| LPM ● | Label & Packaging Materials — pressure-sensitive label stock. | MG.LPM |
Regulation 2
| Term | Definition | Domains |
|---|---|---|
| DPP ● | Digital Product Passport — EU ESPR requirement for product data over the lifecycle. | SG.ATMA.DPP STRAT.ESG.DPP |
| ESPR ● | EU Eco-design for Sustainable Products Regulation — parent regulation of DPP. | STRAT.ESG.DPP |
Retail 2
| Term | Definition | Domains |
|---|---|---|
| POG | Planogram — store-shelf product layout. | SG.VESTCOM |
| SKU | Stock-Keeping Unit — a unique sellable item. | COMM.ACCT.RETAIL |
Segment 2
| Term | Definition | Domains |
|---|---|---|
| MG ● | Materials Group — pressure-sensitive label, graphics, reflective, tape, IHM. ≈70% of revenue. | MG |
| SG ● | Solutions Group — apparel branding, embellishments, Intelligent Labels, Vestcom, atma.io. ≈30% of revenue. | SG |
Strategy 1
| Term | Definition | Domains |
|---|---|---|
| LRP | Long-Range Plan — multi-year financial outlook shared with investors. | STRAT.IR |
Sustainability 4
| Term | Definition | Domains |
|---|---|---|
| SBTi ● | Science-Based Targets initiative — AD's targets are SBTi-validated. | STRAT.ESG.GHG |
| Scope 1 ● | Direct GHG emissions from owned operations. | STRAT.ESG.GHG |
| Scope 2 ● | Indirect GHG emissions from purchased energy. | STRAT.ESG.GHG |
| Scope 3 ● | Value-chain GHG emissions (suppliers + customers). | STRAT.ESG.GHG |
Tech 12
| Term | Definition | Domains |
|---|---|---|
| EDI | Electronic Data Interchange — automated B2B order/invoice messaging. | COMM.O2C.ORDER |
| ESL ● | Electronic Shelf Label — e-paper price display at the shelf edge. | SG.VESTCOM.ESL |
| Hedera HCS ● | Hedera Consensus Service — immutable timestamping for atma.io provenance. | SG.ATMA.CARBON TECH.ATMA.HCS |
| HF/NFC ● | High-Frequency / Near-Field Communication — phone-tappable tags. | SG.RFID.NFC |
| Inlay ● | RFID antenna + IC mounted on a substrate — the core of a smart label. | SG.RFID TECH.RFID.INLAY |
| LF | Low-Frequency RFID — short-range, animal ID / automotive. | SG.RFID.LF |
| MDM | Master Data Management — customer / material / product master. | TECH.DATA.MDM |
| MES | Manufacturing Execution System — shop-floor control. | TECH.ERP.MES |
| PLM | Product Lifecycle Management. | TECH.ERP.PLM |
| RAIN RFID ● | Industry alliance for UHF passive RFID — the dominant retail flavour. | SG.RFID.UHF |
| RFID ● | Radio-Frequency Identification — tagging items with a unique digital ID. | SG.RFID |
| UHF ● | Ultra-High Frequency band (860-960 MHz) — long-range bulk reads. | SG.RFID.UHF |
Ticker 1
| Term | Definition | Domains |
|---|---|---|
| AVY | NYSE ticker for Avery Dennison Corporation. | STRAT.IR |