Happy Birthday, U.P.C.: Thirty-Fifth Anniversary of the Bar Code

* Reuters is not responsible for the content in this press release.

Mon Jun 1, 2009 9:11am EDT

* Administrator GS1 US Celebrates at its Annual U Connect Conference 
* Uses and Benefits of U.P.C. Continue to Grow Alongside New Bar Codes

ORLANDO, Fla.--(Business Wire)--
The 35th anniversary of the Universal Product Code (U.P.C.) bar code will be
celebrated Wednesday by GS1 US, the developer and administrator of the U.P.C.
for more than 200,000 businesses in the United States. 

The organization will mark the event with a giant U.P.C.-adorned birthday cake
for more than 800 attendees at its annual U Connect Conference in Orlando. 

One of the world`s best-known symbols, the U.P.C. comprises a row of 59
machine-readable black and white bars and 12 human-readable digits. Both the
bars and the digits convey the same information: the identity of a specific
product and its manufacturer. 

Originally developed to help supermarkets speed up the checkout process, the
first live use of a U.P.C. took place in a Marsh Supermarkets store in Troy,
Ohio, on June 26, 1974, when a cashier scanned a package of Wrigley`s gum. It
ushered in extraordinary economic and productivity gains for shoppers, retailers
and manufacturers alike, with estimated annual cost savings of $17 billion in
the grocery sector alone, according to one study. 

Replacing individual price-labeling with the U.P.C. resulted in faster, more
accurate checkouts, saving consumers time and money. Shelves were replenished
more quickly, and stores were able to increase the frequency and variety of
sales incentives. It also simplified product returns and rebates. 

The U.P.C. was quickly adopted by other industries, which sought to capture the
benefits it had delivered to the grocery industry. Today U.P.C.s are scanned
more than 10 billion times a day in applications spanning more than 25
industries, including consumer packaged goods, apparel, hardware, food services,
healthcare, logistics, government, and high-tech. 

"The U.P.C. made the modern retail store possible," said Rodney McMullen, vice
chairman of The Kroger Co., which operates more than 4,000 stores in different
formats and under different banners, or names. "It allows us to carry tens of
thousands of items in a given store and move shoppers through quickly while
offering them many different ways to save money." 

Integral to the U.P.C.`s success are its flexibility - usable on myriad surfaces
- and the foresight of the people who decided to design it with the capacity to
identify millions of unique items. Although the range of its use today was not
envisioned in 1974, when supermarkets carried a fraction of the inventory they
carry today, the U.P.C. nevertheless accommodates the creation each year of tens
of thousands of new products. 

"Industry would not be as efficient without the U.P.C," said Sandy Douglas,
president of Coca-Cola North America, and chairman of the GS1 US Board of
Governors. "The U.P.C. provides a basis for the industry to track products from
production to shelf, to move products between companies, and to get products to
shoppers quickly." 

The U.P.C. is equally important to small entrepreneurs, who sell their products
through large retailers, which require the bar code for both sales and recall
purposes. GS1 US helps several thousand such businesses create their U.P.C.`s
annually. 

Every U.P.C. incorporates three elements: the brand owner`s GS1 Company Prefix,
the specific item`s "reference number," and a "check digit," which is calculated
by the combination of the preceding numbers and ensures data accuracy. 

Contrary to one popular myth, the U.P.C. does not contain a product`s country of
origin. But the U.P.C. is one manifestation of the Global Trade Item Number, a
foundational aspect of the GS1 System that enables consistent, standard
identification of products and other items in the supply chain globally. 

"The U.P.C. really is fundamental to commerce," said Bob Carpenter, chief
executive officer of GS1 US. "It took time to build momentum, but it has
succeeded because it benefits everyone: consumers, retailers, and manufacturers.
And it has a lot of life left in it." 

Innovations in Product Identification

The U.P.C.`s success has inspired the creation of new ways to identify products
for the benefit of consumers and industry:

* The newest bar code, GS1 DataBar, can be found increasingly on coupons and
loose produce, such as apples, pears, and tomatoes. On Jan. 1, 2010, its
"sunrise date," supermarkets will begin scanning and processing the GS1 DataBar,
which can be configured in different formats to fit a smaller space or carry
additional information, such as "best before" or expiration dates, or lot
numbers. 
* GS1 Data Matrix, a bar code that resembles a random-patterned checkerboard,
holds large amounts of data in a relatively small space as compared to
traditional linear barcodes, and is becoming increasingly popular for a wide
range of applications including aerospace, pharmaceutical, and medical-device
manufacturing. 
* The Electronic Product Code (EPC) carries information similar to that within a
bar code, but is read by radio frequency identification (RFID) technology
without a direct sight line, rather than being scanned. The EPC also can carry
and transmit additional information. In the retail environment, EPC can enable a
checkout process that is nearly instantaneous.

About GS1 US

GS1 US is a not-for-profit organization dedicated to the adoption and
implementation of standards-based, global supply-chain solutions. More than
200,000 businesses in 25 industries rely on GS1 US for trading-partner
collaboration and for maximizing the cost effectiveness, speed, visibility, and
traceability of their goods moving around the world. They achieve these benefits
through GS1 US solutions based on GS1 global unique- numbering and
identification systems, bar codes, Electronic Product Code-based RFID, data
synchronization, and electronic information exchange. GS1 US operates the
subsidiaries and brands 1SYNC; BarCodes and eCom; EPCglobal US; GS1 Healthcare
US; and RosettaNet. It also manages the United Nations Standard Products and
Services Code (UNSPSC®) for the UNDP. www.GS1US.org

Notes to Editors:

Images of U.P.C. bar codes and GS1 DataBar are available upon request. 

A short history of the U.P.C. and GS1 US is available at www.gs1us.org/overview.






GS1 US
Jon Mellor
609.658.6854
jmellor@gs1us.org


Copyright Business Wire 2009

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