Barcodes and Labeling for the Food Industry

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Barcodes and Labeling for the Food Industry
UPC Barcodes
Product Labels
Nutrition Facts
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What is a UPC barcode?

• UPC stands for Universal Product Code.
• UPCs originate with a company called the Uniform
  Code Council (UCC). You apply to the UCC for
  permission to enter the UPC system. In return,
  the UCC issues you a six-digit manufacturer ID
  number.
• The UPC consists of three parts. The first six
  digits are your manufacturer code (what you are
  identified as in the stores POS system). The
  next five digits are the item number. You assign
  these to your individual products. For example
  00001 is pimento cheese dip, 00002 is jalapeno
  cheese dip etc The last digit is the check
  digit. It is a numerical equation to ensure you
  typed the numbers in correctly without having to
  look at every number.

BARCODE FACT On June 26, 1974, a 10-pack of
Wrigley's chewing gum was passed across a scanner
at a Marsh Supermarket in Troy, Ohio. Today
there are about 5 billion scans everyday.
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Where do I get a barcode?

• The official way of obtaining a UPC bar code for
  your product is to apply for membership and
  receive a company prefix from GS1. Your company
  prefix is a unique string of digits assigned to
  your company, identifying you as the manufacturer
  throughout the entire product supply-chain.
• Their website is www.gs1us.org/joinpc
• The customer support number for GS1 is (937)
  435-3870
• Here you will fill out a form that will determine
  what your membership fee and annual dues will be.

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Example of costs associated with GS1 membership

• XYZ company
• 100,000.00 in gross annual sales
• 1 employee
• 100 products
• I was quoted a membership fee of 750.00 with
  annual dues of 158.00
• For this price I would be given a company prefix,
  be entered into the GS1 (UCC) database and be
  able to create barcodes for up to 100 different
  products.
• I was informed that this is the minimum cost
  associated with registering. Prices range from
  750.00 to 53,500.00 depending on gross sales,
  employees and products needed to barcode.

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3rd Party Barcode Providers

• Last summer GS1 ran a test program selling
  individual barcode numbers for 75.00 each. I
  was advised that this test program is no longer
  active. Aside from that test project, you would
  need to go through the previous process to get
  registered.
• If you go to the web and search for barcodes you
  will see hundreds of companies selling individual
  codes or small blocks of codes for similar
  prices. I strongly encourage you to research the
  limitations of exactly what they're offering, and
  how they match with your business goals.
• Some of the companies are actually reselling GS1
  codes. They register under their company name
  get a prefix with a large number of available
  item numbers. They then resell groups of item
  numbers to you at a discount.
• This can save you money initially but that
  barcode is now registered under their company
  name not yours. Some retailers will not accept
  3rd party barcodes and it can cause other supply
  chain shipping problems.

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3rd Party Barcode Sources

• I pulled this disclaimer from a 3rd party UPC
  code distributers website
• The bar codes will not be able to be used at
  either Wal-Mart or Kroger's. This is due to their
  application process and not to the actual
  functionality of the bar codes. In the
  application process for these 2 stores only, they
  require a copy of your GS1/UCC certificate with
  your own company's name on it. Unfortunately
  neither we, nor any other reseller of bar codes,
  can provide you with this document. If you intend
  to sell your product at either Wal-Mart or
  Kroger's, you must purchase your bar codes
  directly from GS1/UCC to get this document. The
  bar codes will work at any other stores in the
  world but these 2 stores.

I question the statement that Wal-Mart and
Krogers are the only 2 that require you to
purchase direct from GS1. When speaking to the
GS1 rep, she mentioned Target as one of the other
retailers that do not accept 3rd party barcodes.

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What type of labeling should I use?

• Other than the quality of your product, one of
  the main factors that determines if it will sell
  is the design and type of packaging you use. I
  have listed a few of the ways to label your
  products. We will start with equipment you have
  and work up to having it printed off site.

• Labeling in-house with office equipment you have
  (inkjet, laser, copier etc).
• Labeling in-house with specific labeling
  equipment (inkjet label printer, thermal label
  printer).
• Combination of preprinted and in-house equipment.
• Pre printed labels (digital and flexographic).

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Labeling in-house with office equipment you have

• Pros
• Equipment you already have, there are no
  additional costs other than supplies.
• You have complete control of the label and can
  make changes as needed.
• Cons
• Water resistance may be a problem.
• Limited label sizes available.
• Labels usually come on a sheet.
• Hand application only.
• Time it takes to produce the labels.

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Labeling in-house with specific labeling equipment

• Pros
• You will have complete control over changes and
  will not have to wait for labels to be made off
  site.
• Many types of materials and sizes available.
• Cost per label is generally less than with
  traditional laser or ink jet.
• Labels come on a roll and can be rewound for use
  in automatic applicators (found in most bottling
  facilities).
• Labeling software that comes with the systems is
  great for designing barcodes, nutrition facts
  etc
• Cons
• The initial cost of the equipment.
• Very large volumes require more labor on your
  part than preprinting.
• Cost per label in high volumes can be more than
  having the entire label produced with traditional
  methods.

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Examples of In-house Labeling Equipment
Traditional Thermal Transfer.
Water resistant ink jet.
Full color water resistant printing, looks like
you sent off to press. Many different sizes and
shapes. The labels come on a roll. Cost per
label is dependant on ink coverage and size of
the label. Speed can be an issue depending on
quality settings and size of label.
High speed printing of 4 to 12 seconds per label.
Many different sizes and shapes. The labels
come on a roll. Can be used in conjunction with
preprinted labels. Many different materials
available (plastic, high gloss, clear etc).
Only prints one color at a time.
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Combination of preprinted and in-house equipment.

• Pros
• Control over information changes and quantities
  printed
• Can eliminate additional plate charges.
• You can use many different materials and sizes.
• Professional look.
• Lower cost per label
• Cons
• Equipment cost
• Information that changes will be in one color.
• You are doing some of the labeling.

• This method uses a combination of a traditional
  preprinted label that you then run through a
  thermal printer for ingredient/name/nutritional
  changes. It has a low cost per label and
  eliminates the need for plate charges for
  different products.

Preprinted label
After it has been run through the printer
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Pre printed labels flexographic (sent to press)

• Pros
• Lowest cost per label (can be as low as 1 cent
  per label depending on volume and colors)
• No equipment to buy or labels to run on your part
• The higher the quantity the lower the price
• Many sizes, shapes, materials and coatings (UV,
  gloss etc)
• Cons
• Labels will initially require color separated
  artwork
• Plates will need to be made (each color has a
  plate)
• Any changes require plates to be made
• High quantity minimum orders 10,000 plus for each
  design

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Preprinted labels using the digital press method.

• Pros
• Same advantages as the Flexographic No equipment
  costs, many sizes, shapes and coatings. Very
  professional looking.
• In addition you will not need plates with
  digital.
• You do not need color separated artwork (still
  recommend using a graphic artist)
• Lower minimums than Flexo (as few as 100 labels)
• Cons
• Higher cost than flexographic (can be .15 to
  1.50 depending on size and quantity.
• Color matching is sometimes an issue.

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