I've used the pre-gummed labels and also regular paper.
Rather than a glue stick, you can also use a small amount of milk. Wet the back of the label with milk, stick it to the bottle. Dries like glue, doesn't smell rancid.
Both the pre-gummed and the milk-glue will come off when wet. So, if you put them in a cooler of ice you'll wind up with the same problem of not knowing which is which.
As for ink, I've found that HP ink jet ink will run when wet. Epson ink jet ink will not. For this reason, I have not junked my old Epson printer, although the jets do not give great resolution any longer.