Wanted to say I made this glue up and labelled a few cases of beer last night. Seems to have worked really well. I'm pretty thrilled that I've gone from commercially printed labels that come out at around $1.25 each (Evermine vinyl pre-glued - pricey but really nice) to doing it all myself and getting a great result.
Some details and comments...
Art: I am using Gimp to do the label art, printing six on a sheet using a color laser printer on regular paper. I had never used Gimp before, so I needed to do some tutorials and lean on the help system pretty heavily, and I'm sure I didn't do everything the "right" way, but it worked out pretty well, and I'm very happy with the result.
Cost: The color printed laser sheets cost me 30 cent each, and I lay out the label art in Word so they're 6 to a sheet. So that's 5 cents a label. The ingredients for a batch of this glue is about $5.00. Because it goes a long way, I would say cost-per-bottle is eventually extremely small, call it 2 cents. At an all-in cost of 7 cents a bottle, I'm psyched.
Cutting: Trimming those labels to size is a PITA, and I used a flatbed paper cutter board. Next time I arrange the pages, I'm going to (1) overprint the labels to make it easier to avoid white edges and (2) print cut marks (DOH!) to make it easier to sight the cut lines. I'll also arrange the labels to save the number of cuts.
Attaching the labels: Putting these labels on is certainly more messy than using pre-glued label stock, but honestly, once I got the hang of it, it was fine. I keep a moist rag on my knee to wipe my hands on.
Glue consistency: Yes, the glue gets gummy as it warms up. I found it necessary to reheat it, or leave the bottle in a pan of hot water while I was working. This worked fine, but I like the idea of the warmer plate that twofieros is using. Dude - got a link to that product?
I also saw how gummy the glue was when I first made it and added two more tbsp of water. Don't know if I've ruined it or not but it seems to have worked just fine. I did this to make it more workable, but obviously I've stretch the batch a bit too.
Hope this is helpful and thanks again for posting OPM!