The more I look at this, the more simplistic, clean, and awesome it becomes! This has got to be one of my favorites that I have seen posted on HBT. Good Job!
Is your plan to cut these out to the shape outlined?
Wow. Thank you very much. That means a lot. I've since made some changes. I separated the main text so it was a little less leading to the eyes and changed the bottom font. And to answer your question, yes; the label will just be the shape of the red/white dotted border. The grey area is just for background contrast.
I also made a neck label that matches this one with the logo of the "brewery" (which is my profile photo if you click on my name).
It is a contest held by Brew Your Own magazine, they award some decent prizes, Blichmann products, and gift certificates to brewshops that advertise with them, its a good deal.