An apparatus and method is described herein for automatically labeling using labels having a fluid activatable adhesive along the back surface of such label. The apparatus has multiple pallets each being positionable with the lowermost label of a stack of one or more labels to releasably secure by suction the label against the pallet, and multiple pads each being positionable with respect to pallets to receive labels from the pallets and then releasably retain such labels until application onto containers. Fluid for activating adhesive is applied by an applicator onto labels retained upon the pad to change the fluid activatable adhesive along the label's back surface from a non-tacky state to a tacky state just prior to application of the label onto container.