The present invention discloses a method of enabling the easy separation of labels, including wrap around labels and sleeve labels, particularly shrink sleeve labels, from containers during recycling through the use of a specially formulated coating to be applied in the seam area. The coatings ensure proper bonding, and shrink properties, of the labels, and have been designed to help de-bonding of the seam in a hot caustic wash step, or a solvent wash step. The method does not rely on floatation separation and therefore may be applied to any container/label material combination regardless of their specific gravity differences.