A label for a container is formed by wrapping a length of label material around a cylindrical mandrel and introducing heat, adhesive or other sealing means into a gap between the leading end portion of the label material and the trailing end portion as the label material is wrapped around the mandrel. The cylindrical sleeve is slid off of the mandrel and telescoped over a container passing thereunder. The container with a cylindrical sleeve therearound is then moved to a heating station which heats the label material, preferably foam polystyrene, to cause it to shrink into conformity with the contour of the container.