Fri Aug 28, 2015 | 2:29 AM EDT
By Emma Thomasson
BERLIN (Reuters) -
Growing demand for more information about the products we buy could mean the end of the simple barcode - the blocks of black and white stripes that adorn most objects for sale and are scanned five billion times a day.
First used on a pack of Wrigley's Juicy Fruit
chewing gum in 1974 in a store in Ohio,
barcodes have revolutionized the retail world,
allowing cashiers to ring up products much
faster and more accurately, while also
streamlining logistics.
But shoppers are now demanding far greater
transparency about products, and store owners need more information to help with stock taking, product recalls and to fight fakes.
The basic barcode is just not up to the job.
That could mean a costly upheaval for retailers
and brands to change packaging and invest in
new systems and scanners. But it should also
bring benefits as more data helps them manage the flow of goods better.
"The barcode did a great job, but it is now time
for succession," said Capgemini consultant
Kees Jacobs, who is working with the world's
top retailers and food manufacturers to try to
agree new global standards for labels and
product data. "The current barcode is not sufficient to be the carrier of much more granular information that is needed," Jacobs said.
The most ubiquitous barcodes allow an eight to
14 digit number to be read by a laser scanner.
For example, barcode 4-003994-111000
identifies a box as being a 375 gram pack of
Kellogg's Corn Flakes.
However, that number does not directly capture any other information that might interest a shopper - such as ingredients, allergens or country of origin - nor does it provide a retailer with useful details such as the batch number or sell-by date.
That data is usually printed on the pack, but
consumers increasingly want to read it online,
or with a smartphone app such as one that
measures calories.
Retailers want data that can be scanned for tasks such as quickly locating faulty goods for recall or about-to-expire products for mark downs.
SUSTAINABLE AND SAFE?
GS1, the non-profit organization that assigns
the unique numbers in barcodes, has developed a double-layered barcode it calls the "data bar" which can carry some extra details such as expiry date, quantity, batch or lot number.
That has allowed German retailer Metro
(MEOG.DE) to launch PRO Trace, a
smartphone app that shows, for example, that a filet of salmon on sale at a store in Berlin on
Aug. 25 was caught at the Bremnes Seashore
fish farm off the coast of Norway on Aug. 17 and processed in Germany on Aug. 21.
The app also displays a map highlighting the
fishing area of the catch and a detailed
description of the Atlantic salmon.
Metro says the app helps customers at its cash-and-carry stores such as professional chefs from hotels and restaurants, as they can now embellish their menus with information about the exact origin of pricey delicacies such as wagyu beef.
"We are the only ones in Germany that can do
this for fresh fish. It's about trust. Our customers challenge us to offer sustainable and safe products," said Lena vom Stein, a corporate responsibility project manager at Metro.
Metro set up the tracking scheme to help it
comply with European Union regulations aimed
at stemming overfishing and started making the data available to customers in 2012.
It now extends to meat, and fresh fruit and vegetables will follow.
Other retailers are also opening up, often
supplementing the barcode with a pixilated
square known as a quick response (QR) code.
It can store dozens more data points and can
be scanned by a smartphone camera to lead to a web page, but can still not be read by the majority of store scanners.
Dutch retailer Albert Heijn (AHLN.AS) recently
introduced "Check Origin" QR labels on locally-
grown radishes and blueberries. Scan the
sticker on a mobile phone and it plays a film
that rewinds to show the journey from the shelf
back to the packing factory, then back to the farmer's field.
Such tools are likely to fuel demands for more
transparency. A GS1 survey found consumers
are most interested in nutritional and ingredient information, details on allergens, organic certification, environmental impact and ethical standards.
HARMONIZING DATA
Making such a wealth of data accessible via
codes that can be scanned is only part of the
problem. A bigger challenge is gathering,
storing and standardizing the information in the first place.
Fiona Wheatley, sustainable development
manager at British retailer Marks and Spencer
(MKS.L), says keeping tabs on all the
company's suppliers can be a daunting task.
"Your ability to give your customers more
confidence that they can rely upon is proving to be increasingly challenging," she said, adding that M
By Emma Thomasson
BERLIN (Reuters) -
Growing demand for more information about the products we buy could mean the end of the simple barcode - the blocks of black and white stripes that adorn most objects for sale and are scanned five billion times a day.
First used on a pack of Wrigley's Juicy Fruit
chewing gum in 1974 in a store in Ohio,
barcodes have revolutionized the retail world,
allowing cashiers to ring up products much
faster and more accurately, while also
streamlining logistics.
But shoppers are now demanding far greater
transparency about products, and store owners need more information to help with stock taking, product recalls and to fight fakes.
The basic barcode is just not up to the job.
That could mean a costly upheaval for retailers
and brands to change packaging and invest in
new systems and scanners. But it should also
bring benefits as more data helps them manage the flow of goods better.
"The barcode did a great job, but it is now time
for succession," said Capgemini consultant
Kees Jacobs, who is working with the world's
top retailers and food manufacturers to try to
agree new global standards for labels and
product data. "The current barcode is not sufficient to be the carrier of much more granular information that is needed," Jacobs said.
The most ubiquitous barcodes allow an eight to
14 digit number to be read by a laser scanner.
For example, barcode 4-003994-111000
identifies a box as being a 375 gram pack of
Kellogg's Corn Flakes.
However, that number does not directly capture any other information that might interest a shopper - such as ingredients, allergens or country of origin - nor does it provide a retailer with useful details such as the batch number or sell-by date.
That data is usually printed on the pack, but
consumers increasingly want to read it online,
or with a smartphone app such as one that
measures calories.
Retailers want data that can be scanned for tasks such as quickly locating faulty goods for recall or about-to-expire products for mark downs.
SUSTAINABLE AND SAFE?
GS1, the non-profit organization that assigns
the unique numbers in barcodes, has developed a double-layered barcode it calls the "data bar" which can carry some extra details such as expiry date, quantity, batch or lot number.
That has allowed German retailer Metro
(MEOG.DE) to launch PRO Trace, a
smartphone app that shows, for example, that a filet of salmon on sale at a store in Berlin on
Aug. 25 was caught at the Bremnes Seashore
fish farm off the coast of Norway on Aug. 17 and processed in Germany on Aug. 21.
The app also displays a map highlighting the
fishing area of the catch and a detailed
description of the Atlantic salmon.
Metro says the app helps customers at its cash-and-carry stores such as professional chefs from hotels and restaurants, as they can now embellish their menus with information about the exact origin of pricey delicacies such as wagyu beef.
"We are the only ones in Germany that can do
this for fresh fish. It's about trust. Our customers challenge us to offer sustainable and safe products," said Lena vom Stein, a corporate responsibility project manager at Metro.
Metro set up the tracking scheme to help it
comply with European Union regulations aimed
at stemming overfishing and started making the data available to customers in 2012.
It now extends to meat, and fresh fruit and vegetables will follow.
Other retailers are also opening up, often
supplementing the barcode with a pixilated
square known as a quick response (QR) code.
It can store dozens more data points and can
be scanned by a smartphone camera to lead to a web page, but can still not be read by the majority of store scanners.
Dutch retailer Albert Heijn (AHLN.AS) recently
introduced "Check Origin" QR labels on locally-
grown radishes and blueberries. Scan the
sticker on a mobile phone and it plays a film
that rewinds to show the journey from the shelf
back to the packing factory, then back to the farmer's field.
Such tools are likely to fuel demands for more
transparency. A GS1 survey found consumers
are most interested in nutritional and ingredient information, details on allergens, organic certification, environmental impact and ethical standards.
HARMONIZING DATA
Making such a wealth of data accessible via
codes that can be scanned is only part of the
problem. A bigger challenge is gathering,
storing and standardizing the information in the first place.
Fiona Wheatley, sustainable development
manager at British retailer Marks and Spencer
(MKS.L), says keeping tabs on all the
company's suppliers can be a daunting task.
"Your ability to give your customers more
confidence that they can rely upon is proving to be increasingly challenging," she said, adding that M
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