Norwegian retailer reduced food waste by 18 per cent with a new barcode solution
NorgesGruppen, Norway’s largest grocery retail group, whose retail chains include Meny, Kiwi and Spar, launched a pilot of the new barcode solution in 2019. In the pilot, which utilised GS1 2D codes containing expiry date information, food waste in fresh products was reduced by an average of 18 per cent per product. Following these positive results, the company has expanded the use of GS1 2D codes to an increasing number of products.
– Optimising product flow is the most effective way to reduce food waste in stores. Stores need to have the right quantity of products at the right time – in other words, just the right amount of food on the shelves at all times. GS1 2D codes support this by providing stores with accurate visibility of inventory levels and product expiry dates, says Kenneth Skauge, Sustainability Manager at Meny.
Unlike the traditional EAN barcode, a GS1 2D code can contain additional information alongside the product identifier, such as expiry dates and batch numbers.
Opportunities in Finland as well
Food waste in retail has been reduced in Finland in recent years. According to calculations by the Natural Resources Institute Finland (Luke), the share of food waste in grocery retail fell from 1.6 per cent to below 1 per cent between 2018 and 2024. However, food waste management still relies largely on forecasting, order planning, discounting and the manual monitoring of expiry dates in stores.
Digital batch and expiry date information could introduce an entirely new way of managing product shelf life at store level. It would enable products approaching expiry to be identified more efficiently, freeing up staff time for other tasks and improving overall store operations. At NorgesGruppen, these benefits have already translated into tangible results.
– We have reduced food waste in our stores by a total of 40 per cent since 2018. GS1 2D codes have been an important factor in achieving this, says Kenneth Skauge.
Stores lack digital visibility of product-specific expiry dates
At present, grocery retailers do not have digital information on how many products with different expiry dates are available on store shelves or in storage, how many have been sold, or which products are approaching their expiry date.
– Without digital expiry date and batch information, store personnel must manually inspect shelves to identify products whose use-by date or best-before date is approaching. This requires a significant amount of staff time every day. The value of GS1 2D codes in food waste management lies in the fact that expiry date and batch information travels with the product from production through to the checkout and can be utilised digitally throughout the supply chain, says Kimmo Keravuori, Standard and Compliance Lead at GS1 Finland.
When expiry date information is included in a GS1 2D code, the point-of-sale system can update store inventory data at batch level during each sales transaction. This provides the store with visibility into which product batches remain in stock and how quickly they are being sold. This makes it easier to identify products approaching expiry and helps ensure that price reductions are applied to the right products at the right time.
In addition to food waste management, GS1 2D codes improve inventory management, stock rotation and product availability.
– GS1 2D codes have given us better visibility of our store inventory situation. When product expiry dates are included in the data flow, we can order products more accurately, manage stock rotation more efficiently and identify in good time products whose use-by date is approaching. This saves staff time, reduces food waste and improves overall store efficiency, says Christian Fredrik, Store Manager at Meny Bryn.
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