I would limit the amount of text on the label. If you don't want to reduce the number of words you use, lessen the space between lines in each paragraph and reduce the font size slightly. Justified text might also look cool after you reduce the space it takes up. The colors seem a bit muddy as well. Maybe lighten the background color (it looks dark brown to me) and make it tan. When you create the label (or export it from whatever you're making it in) export it at a higher resolution so it doesn't get pixelated. This will allow you to use a smaller font size and it'll still be legible. I like the dog logo.
Also, use the milk trick to apply the labels. You can print them at home, cut them, dip them briefly in milk (any kind), let it drip a bit, slap them on the side, run a rag over it to smooth it out and absorb any excess, and let it dry. It's a brilliant method for adhering labels. There's a thread about it on here some where.