Company leaders provided an update on Avery Dennison’s growth strategies and operations at the meeting. These included reviews and projections for the pressure sensitive materials business, office products business, retail information services business, and specialty materials and converting businesses.
Scarborough highlighted the progress to date for Avery Dennison's new RFID business, stating that “similar to the emerging markets today, RFID will one day represent an entirely new platform for growth.” He announced that global consumer products manufacturer Kimberly-Clark recently selected Avery Dennison as its supplier for Gen 2 inlays, which are the industry's current standard for RFID labels. As previously announced, the company is targeting approximately $10 million in revenue from RFID inlays this year, including sales related to Kimberly-Clark’s implementation plans, as well as those of other end users and converters expected to be announced in the coming months.
Avery Dennison “has targeted a market share goal of 30 percent by the end of 2006, which should eventually translate into a business contributing hundreds of millions of dollars of revenue annually.” He also outlined the company's competitive advantages in the RFID marketplace, including its proprietary high speed manufacturing capability for inlays and its extensive network of existing relationships with label converters that will supply RFID tags to end users.