GS1, the organization that develops and maintains standards for barcodes, has announced a new initiative to transition from 1D UPC barcodes to 2D barcodes.

A simple way to envision 2D barcodes is to consider them more like QR codes, which are able to convey much more information. Currently, 1D single line barcodes only provide simple price look up and inventory tracking.

The Transition Timeline

This change is not a regulatory mandate. The first phase of the initiative, Sunrise 2027, is designed to help retailers transition point-of-sale hardware and software to be able to scan and process the new 2D barcodes by the end of 2027.

GS1 then envisions an “organic” transition by brand owners to the 2D barcodes with the gradual elimination of the current 1D barcodes. This would be similar to the introduction and nearly universal adaptation of the 1D barcode, which took almost two decades.

The Market May Move Faster Than the Plan

The market may speed up the transition. Older hardware and software that can read the 1D barcodes will be retired or become obsolete. Retailers, who drove the adaptation of the 1D barcodes, and distributors will demand that brands adapt the new 2D codes to gain access to information that will help them operate their businesses more efficiently.

The transition is already underway. Several global brand owners are already planning implementation of the 2D barcode on their products while phasing out the use of the 1D barcode. While the change to 2D barcodes is not mandatory or imminent for small brand owners like craft brewers, it is not too early to consider how this transition may affect your business and what opportunities the new 2D barcodes may bring.

What Brewers Will Need to Navigate

Converting to 2D barcodes will present challenges, but managing existing packaging inventory carefully during the changeover can ease the transition and reduce waste. GS1 currently suggests printing both 1D and 2D barcodes on products during the transition period, which would add to the cost of design and production of new labels. The devil is always in the details, such as insuring brands’ existing Global Trade Item Numbers (GTINs) are included in the new 2D barcode to ensure continuity of scan data. Unintended and unforeseen challenges will undoubtedly arise.

Opportunities for Craft Brewers

The new 2D barcodes will provide certain advantages. Brewers currently utilizing both a QR code and a 1D barcode on their packaging will be able to eliminate the 1D barcode and gain valuable space on their labels. The 2D barcodes will give consumers more information and improve traceability of products through the supply chain. Just as there are unforeseen challenges, new innovations will create new opportunities.

The Brewers Association will continue to monitor this transition and provide best practice guidance and share innovative ideas from its members on how to best leverage the new opportunities that this change will bring.