New bar code set to boost sales of fresh produce and cut waste

Retailers are poised to sell more fresh produce and reduce waste with the launch of a new smaller bar code, which can be applied to more products and incorporate more information such as expiry dates.

The GS1 DataBar bar code will be introduced in 2014 and used alongside the current EAN-13 bar code.

60% of loose apples are bar coded with GS1 DataBar in the US

According to GS1 UK, the supply chain standards organisation, the new DataBar has two key features: it is approximately half the size of the EAN-13 bar code so can be used on products, which have previously not been bar coded such as loose, fresh produce and cosmetics. Secondly, it enables more data to be encoded into the product such as best before dates and batch numbers, which can help cut waste and improve traceability.

In development for a number of years, the new bar code is already used extensively on fresh produce in the US.

According to GS1 UK, 60% of loose apples and pears and 50% of all loose tomatoes are now bar coded with GS1 DataBar in North America. Usage is set to extend from loose produce to bagged produce including cherries and grapes.

Loblaw, the leading Canadian food retailer, has expanded the use of the GS1 DataBar to all of its fresh produce following a trial with apples and bananas. On average, the company ships 1,900 truck loads of fresh produce per week.

It found the DataBar improved accuracy and speed at the checkout by eliminating price look-up (PLU) number entry errors by cashiers. It also increased the use of self-checkout - customers tend not to self-scan if they are buying fresh produce. Shrinkage was also reduced and the new bar code helped Loblaw differentiate between organic and non-organic product at the till.

In Japan, two leading retailers, Bunkado and Beisia, are using GS1 DataBar to implement a mark-down process on fresh food including sushi and sashimi, which is prepared in-store two or three times a day. Many of the items have a short shelf life with some kept for less than 24 hours. The freshness of the products is checked regularly so that discounts can be applied to products approaching the end of their shelf life to promote sales. These are applied by printing and applying new expanded GS1 Databar bar codes to the product. The discount information is encoded into the bar code and can be scanned quickly at the point of sale. The retailers are also able to reject any products, which are scanned after their expiry hour or date.

Bunkado and Beisia have subsequently extended the technology to other short shelf life lines including milk, yogurt and tofu.

GS1 UK is now advising retailers check their scanning equipment to ensure it can scan the new bar code ahead of its introduction in four years’ time.

While it does not replace any existing bar codes and the majority of manufacturers will continue using current bar codes, some suppliers are eager to switch to DataBar.

Tim Brown, solutions manager at GS1 UK, said: “Once manufacturers know all retailers can scan DataBar, why not go for the smaller bar code? Nestle, for instance, can’t wait to have it because it takes up less space and there is increasing pressure to put more information on products.”

Tim Brown: check scanning equipment now

Brown said encoding extra data, such as expiry dates, would not happen over night but there were obvious benefits for retailers being unable to sell out of date items. Similarly, incorporating batch information would assist with product recalls.

“If certain products have been recalled, we know it won’t get past the till.

“It’s a shame we can’t use it for Toyota cars,” he said.

According to GS1 UK, scanning equipment launched in the last decade is likely to have DataBar built in, although it could be switched off, or it could be upgraded.

“Most retailers will have the right equipment but we want them to check now and the message is still important for retailers who could be buying older equipment," said Brown.

GS1 UK has launched a web site - www.gs1databar.org.uk - to raise awareness of the new DataBar bar code launch and help retailers prepare.

GS1 DataBar: smaller and suitable for loose, fresh produce