Abstract: A label applicator system provides for high speed, accurate label transfer from a web to items moving on an item transport along a path relative to the system. The items, such as bottles, have a contoured surface. The applicator includes a supply reel for supplying labels on a web and a take-up for taking up the web after transfer of the label. A drive roller moves the web through the applicator system. The system includes a web positioning assembly and a movable label applicator head. A contour sensor senses the bottle contour and develops a profile for the head to follow to apply the labels to the bottles. The supply, take-up and the drive are operably engaged with one another to maintain a relatively constant tension in the web.