SAN GABRIEL VALLEY / COVER STORY : The Avery Dennison Story
The first U.S. peel-and-stick stamp emerged from the research and development offices of Avery Dennison Corp. in Pasadena more than 20 years ago. While the idea was applauded, the project stalled due to technical problems. The U.S. Postal Service asked Avery Dennison to try again in 1989. After six years of research, the firm holds the market share in self-adhesive stamps. Nationwide, more than 6.8 billion were produced last year by several suppliers, about 8% of the stamp market and a 200% increase over 1993.
1974: Avery Dennison produces the first U.S. self-adhesive stamp in time for the holiday season. Fifteen million stamps are sold.
The 10-cent “Peace on Earth” stamp quickly becomes a collector’s item, despite technical problems due to the adhesive leaching from the back of the stamp onto its face.
1989: The U.S. Postal Service asks Avery Dennison to try again with self-adhesive stamps. The firm assembles a 10-member research and development team in its Pasadena laboratory. The firm also starts work on an ATM-dispensed self-adhesive stamp, which must have the same texture, thickness and pliancy of a $20 bill.
1990: The first ATM stamp is issued. It is worth 25 cents and made from plastic, which is easier to produce with existing technology than paper. The research team expands to 30 people.
1991: The Postal Service asks Avery Dennison to keep trying for a paper stamp that will satisfy collectors. The difficulty is getting the two sheets of paper (the waxy backing strip plus the peel-off stamps) thin enough to fit through an ATM machine. The breakthrough is achieved in June.
1994: Avery Dennison is awarded a production contract to produce millions of ATM stamps. They sell out as fast as Avery and the Postal Service can supply them. Self-adhesive stamps now account for 8% of the 40 billion stamps produced annually and Avery Dennison is the market leader.
1995: Avery Dennison shuts down its Pasadena pilot plant for printing self-adhesive stamps, moving all those operations to its facility in South Carolina. In April, the company announces production of 2 billion “Flag Over Field” stamps. By the 21st Century, self-adhesive stamps are expected to comprise half of the 40 billion stamps sold annually.
