the thing you have to remember is that when you print these things, you are limited by the dpi of your printer and the image resolution. you need higher res stock images or you will have artifacts in your printed image. right now, your image for the mead has alot of artifacts, that unless you created them when you shrunk the image for upload, are likely to ruin your printed label.
personally, i make my labels using the largest stock imagery I can find for the task at hand in a 300 or 600dpi file. For example, my latest label had printed dimensions of 3.75" x 4" but the ps file was 2250x2700 pixels at 600dpi so when it is printed, i lose little.