FBIN, Featured

2D barcodes will revolutionise the industry

50 years after the adoption of the linear barcode, 2D barcodes continue to gain traction across the Food & Beverage Industry.

50 years after the adoption of the linear barcode, 2D barcode technology continues to gain traction across the Food & Beverage Industry. Adam McCleery writes.

The power of 2D barcodes continues to be demonstrated across the food and beverage industry, but the full potential of the technology is yet to be achieved.

GS1 Australia chief marketing officer, Richard Jones, said in its 50th anniversary year, the linear barcode would continue to have a role, but that 2D barcodes, including Datamatrix and QR codes, will gain in popularity and prominence in many areas as their full possibilities are realised.

It was April 3, 1973, when an industry-wide agreement on the use of linear barcodes was agreed, revolutionising the entire industry.

From that point forward, a simple scan at checkout connected a physical product to its core information that could be shared in stores and throughout the supply chain. Since then, GS1 standards have powered more reliable and transparent supply chains across industries.

GS1 standards and services enable trusted, complete, and accurate product identification, as well as data sharing. Better data still means better service.

Whether online or in-store, the ubiquitous GS1 barcode (GTIN) is still the trusted foundation for retailers and brands, helping businesses large and small to uniquely identify their products.

And now the roll out and continued innovation around 2D barcodes is set to have an even greater impact on the industry, Jones said.

“I don’t want to put a ceiling on the technology because, to be honest, we still don’t know the full potential of the technology,” he said. “The sky is the limit.”

Among some of the key benefits of 2D barcodes includes strengthening supply chain efficiency and resiliency, reliable, verifiable product information, improved consumer experiences and brand loyalty, and compliance with regulatory requirements.

Among its many advantages, 2D barcodes are able to store large swaths of information, from batch and lot numbers to expiry dates, ingredient information, and serial numbers.

2D codes also give producers, brand owners, and retailers, new and more efficient methods for connecting to consumers. A consumer can scan the code and instantly have access to a wide range of beneficial information.

As consumer demands around sustainably sourced products, along with healthier choices, the option to present this information at the supermarket shelf could prove invaluable. Especially when it comes to promoting brand loyalty.

One great feature is how a 2D, or QR barcode, can also strengthen food safety by alerting a customer that the product is out-of-date when it is scanned at the checkout.

Woolworths and selected suppliers who are now using 2D barcodes are achieving substantial results, including boosting food safety by restricting the sale of out-of-date items and reducing food waste by up to 40 per cent.

2D barcodes enable store teams to more quickly and easily identify if a product is approaching its expiry date and proactively mark it down, so that the product can be sold without having to be disposed.

The same traceability features could also prevent recalling larger amounts of product than is required, if required. Which can also save food from unnecessarily being sent to a landfill.

The encoding of a product’s batch, lot and/or serial number into a 2D barcode can be used to identify affected products anywhere across the supply chain, so only those products need to be withdrawn from store shelves.

All other unaffected products can be saved and remain on the shelf for sale.

The capacity for 2D barcodes to store so much information will also allow for companies to look at making changes to packaging, because all the information can now be stored on a QR code which is much smaller than a linear barcode.

Information such as storage options, recycling instructions, origin and more can be taken off the packaging, freeing on-pack space for brand owners to use differently, or allowing them to remove excessive packaging to save costs and reduce waste.

The technology is also expected to continue, and strengthen, the fight against food counterfeiting which continues to be a thorn in the side of the food and beverage industry.

There are two main types of counterfeits in the food sector.

First, food fraud, falsification and adulteration, which refers to products made from ingredients that are not of the quality claimed by the manufacturer.

Second is the falsification of a brand, protected geographical indication (PGI) or denomination of origin (PDO), which relates to falsified data either on the food or the packaging itself.

“GS1 is stepping up to the plate on this with the introduction of next- generation barcodes, like 2D barcodes. GS1 has also introduced new global services around verification,” said Peter Carter, director of Business Development and Innovation at
GS1 Australia.

Carter said too many myths revolved around 2D codes; myths he hoped would be squashed as the technology becomes more prolific.

“One of the things that we often hear from various angles is that 2D codes aren’t safe, and I’d like to kill that myth,” said Carter.

“The fact that so many people carry mobile phones now, and QR codes have been so widely accepted, particularly in our major markets in southeast Asia, is a good sign.”

Jones echoed the sentiments of Carter stating as consumers became more aware of the 2D barcode technology the quicker it would take hold.

“I think the sign in processes during the COVID-19 pandemic did show a lot of people that 2D barcodes are more than a novelty,” he added.

Some of the other key drivers behind the continued adoption of the technology was a trade-off between cost, speed, and effectiveness.

GS1 is uniquely positioned to support the industry with all the features of 2D codes as a means of protecting product and brand quality.

Public safety, even more than brand reputation, is another key driver behind the renewed push to stamp out counterfeit food, according to Carter, but the implications are still at the front of the mind of industry insiders.

For example, consumers are quick to point out any issues around unlisted allergens being found in a product, generally after an allergic reaction, which has led to changes at the point-of- sale with frequent allergen warnings to protect the brand’s reputation through transparency.

“When you have falsification and counterfeiting of food in that scenario you end up with a significant long-term issue,” said Carter.

Carter said the Australian industry could learn from global markets and apply that knowledge locally to respond well to this rise in consumer awareness around the benefits of the technology.

Send this to a friend