EXHIBIT 12

                   AVERY DENNISON CORPORATION AND SUBSIDIARIES
                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                              (Dollars in Millions)




                                                          Three Months Ended                   Nine Months Ended
                                                 -----------------------------------  -----------------------------------
                                                 September 30, 2000  October 2, 1999  September 30, 2000  October 2, 1999
                                                 ------------------  ---------------  ------------------  ---------------
                                                                                               
Earnings:
     Income before taxes                             $  110.3           $  101.2           $  328.3           $  227.1
     Add:  Fixed charges*                                19.6               15.8               56.3               43.8
           Amortization of capitalized interest            .5                 .4                1.3                1.2
     Less: Capitalized interest                          (1.2)               (.5)              (2.3)              (1.3)
                                                     ---------          ---------          ---------          ---------
                                                     $  129.2           $  116.9           $  383.6           $  270.8
                                                     =========          =========          =========          =========

*Fixed charges:
           Interest expense                          $   14.2           $   11.6           $   41.1           $   31.2
           Capitalized interest                           1.2                 .5                2.3                1.3
           Amortization of debt issuance costs            --                 --                   .2                 .2
           Interest portion of leases                     4.2                3.7               12.7               11.1
                                                     ---------          ---------          ---------          ---------
                                                     $   19.6           $   15.8           $   56.3           $   43.8
                                                     =========          =========          =========          =========
Ratio of Earnings to Fixed Charges                        6.6                7.4                6.8                6.2
                                                     =========          =========          =========          =========




The ratios of earnings to fixed charges were computed by dividing earnings by
fixed charges. For this purpose, "earnings" consist of income before taxes plus
fixed charges (excluding capitalized interest), and "fixed charges" consist of
interest expense, capitalized interest, amortization of debt issuance costs and
the portion of rent expense (estimated to be 35%) on operating leases deemed
representative of interest.