A label applicator system transfers labels from a web to items moving on a rotary item transport. The applicator system includes a supply for supplying the web with the labels thereon and a take-up for taking up the web after transfer of the label from the web to the item. The supply and take-up are vertically oriented. The applicator includes a movable label applicator head. A rotary table moves the items along a path defined by rotation of the table and rotates the items relative to an axis of the items. The label applicator head is movable toward and away from the item and the item is rotated to apply the label to the item as it moves passed the applicator head.