The independent label and commercial printer will take delivery of the machine in December before production begins at its Townhead facility, Glasgow in February 2011.
The 80-staff company's Gallus machine will enable it to broaden its product offering for customers such as whisky businesses in the drinks industry.
Installation of the Gallus press comes on the back of increased demand from customers requiring self-adhesive labels for drinks bottles, a move away the more traditional wet labelling process.
John Watson, chairman and chief executive of the company, said: "The self adhesive process will enable customers to increase the bottling speeds with often an improvement to the quality of the label too."
Despite the investment in new technology, Watson said the machine will complement the business's high-volume wet labelling operation.
"We will still be producing 20m wet labels a week but with the Gallus we have a breathtaking technology that allows us to cover all bases," he said.
Ferdinand Rueesch, vice-chairman of the board at Gallus, said: "We are delighted that our Gallus RCS 330 Offset machine was able to meet the high expectations of John Watson & Co. in terms of both quality and technology.
"I am convinced that John Watson & Co. will create breathtaking printing results on their new machine."
Two years ago, the company installed the world’s longest B2 Heidelberg press, which carries no fewer than 15 units. Costing £2.2m, the B2 Speedmaster was given the name CD 74-L-Y-9+L-YY-L-X3(UV).
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