PACKAGING STANDARD AND REQUIREMENTS DOCUMENT

Version 7.1.1 Prepared by Product Services Authorised by: Patrick Fountain, GM Supply Chain Strategy

Table of Contents

PACKAGING STANDARD AND REQUIREMENTS DOCUMENT 1 TABLE OF CONTENTS 2 1 INTRODUCTION 3 2 LEVELS OF PACKAGING 4 3 BARCODING 5 a) Each (EA) ...... 5 b) Inner (INN), Outer (OUT), Shipper(SHI) ...... 6 c) Pallet (PAL) ...... 6 3.2 Barcode colour spectrum ...... 7 3.3 Allocating barcode numbers ...... 8 3.4 Allocating barcode numbers to a printed publication (books, manuals, magazines and guides)...... 8 3.5 Generating a 14 digit logistics barcode number from 12 digit retail barcode number .... 9 3.6 Generating a 14 digit logistics barcode number from 13 digit retail barcode number .... 9 3.7 When to change a retail barcode number ...... 9 3.8 When to change the trade unit barcode number ...... 9 4 LABELLING 10 4.1 Retail labelling ...... 10 4.2 Trade unit labelling ...... 11 4.3 Kitting requirements ...... 12 4.4 Warning ...... 14 4.5 General compliance markings ...... 15 5 PACKAGING 16 5.1 Different methods of packaging ...... 16 5.2 Packaging requirements ...... 16 5.3 Packaging to avoid ...... 16 5.4 The Australian Packaging Covenant (APC) ...... 16 5.5 SSCC ...... 18

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1 Introduction

There are many benefits to be gained by all participants from an efficient and effective Supply Chain. The full extent of the benefits will not be realised unless Super Retail Group (SRG) and its Trade Partners are aligned throughout the supply chain.

To be aligned, fundamental processes and standards must be established, understood and applied. There are three 'Core Competencies' that SRG’s Trade Partners should be compliant with from a supply chain perspective: 1. Barcoding 2. Labelling 3. Packaging

This specifications document is to be used as a reference tool when preparing products for delivery to SRG. This document will specify the requirements around barcoding, labelling and packaging. These requirements are based on industry standards, GS1 global standards and industry practices.

Packaging Standard and Requirements queries should be directed to: [email protected]

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2 Levels of packaging

An item intended for EACH sale to the consumer at Quantity = 1 unit (EA) the point of sale.

A level of packaging that is contained inside INNER an outer or shipper. An Quantity = 6 units (INN) inner can only exist if an outer is used.

A level of packaging that may contain OUTER multiple inners or retail Quantity = 24 units (OUT) units and can be packed in multiples inside a shipper.

A level of packaging SHIPPER that contains multiple Quantity = 48 units (SHI) outers.

A single layer of cartons LAYER spread over the surface Quantity = 288 units (LAY) area of a pallet.

A level of packaging PALLET containing lower levels Quantity = 864 units (PAL) of packaging.

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3 Barcoding

a) Each (EA) There are two scenarios in which a retail barcode can be displayed on an INNER or OUTER:

. Inners, outers and shippers, also referred to as “trade units”, and can be designed to be sold at the retail level. . The retail unit is too large/heavy to pack multiples into another level of packaging.

Requirement (symbology, example image, GTIN breakdown Location magnification min and max)

EAN - 8 93 27303 9 Displayed in such a GS1 Prefix Item reference way that the bar Check digit height is not reduced

Retail environment = 80% (truncated), the Supply chain environment = 200% magnification meets

UPC-E 01 24013 6 the minimum and does not exceed the GS1 Prefix Item reference maximum, and the Check digit light margins are not

encroached on by Retail environment = 80% Supply chain environment = 200% any wording, logos, or

colouring. EAN-13 932730311 071 9 Away from packaging Company prefix Item reference flaps, seams, ripples Check digit and undulations.

Retail environment= 80% Away from corners of Supply chain environment = 150% - blow-mould cases and 200% not hidden behind the UPC-A 04364566 448 0 product.

Company prefix On a smooth flat Item reference Check digit surface and should not fold over edges.

Retail environment = 80% Supply chain environment = 150% - 200%

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b) Inner (INN), Outer (OUT), Shipper(SHI)

GS1-128 (01) 1 932730311071 6

AI Indicator First twelve digits of the EAN-13 Adjacent sides (minimum, Re-calculated check digit short and long).

Recommended for (01) 10 04364566448 7 automated scanning – AI 19mm from the edge and Indicator plus a filler zero 32mm from the base. First twelve digits of the UPC-A Re-calculated check digit Barcodes should be Supply chain = 50% -100% displayed on two opposite sides if adjacent cannot ITF-14 1 932730311071 6 be achieved (horizontal not vertical). Indicator First twelve digits of the EAN-13 Retail barcode should not Re-calculated check digit be visible/scannable, nor

should it be facing 10 04364566448 7 outwards if in a

Indicator plus a filler zero package. First eleven digits of the UPC-A Re-calculated check digit

Note: Bearer bar recommended Supply chain = 50% -100% but not mandatory

c) Pallet (PAL) SSCC labels can be applied to pallets for DC delivery or cartons if delivery contains 4 cartons or less.

Carton - Recommended (00) 0 061414112 3456789 0 for automated scanning – 19mm from the edge and AI 32mm from the base. SSCC Extension digit Company prefix Pallet - Placed at a height Serial reference between 400mm and

Check digit 800mm from the surface on which the pallet stands Note: AI is not part of the check and no closer than 50mm Supply chain = 48.7% - 92.5% digit calculation from the vertical edge.

Picket fence orientation.

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3.2 Barcode colour spectrum The barcode does not have to be black and white, but by using other colours, this reduces the tolerance that the barcode has to other flaws and can increase the chance of the barcode failing other GS1 standards.

The preferred colour for any barcode is matt black bars on a solid matt white background. Colours in the red spectrum are not suitable at all because scanners use a red light and as a result, will see the bars as neutral. The white background includes the light margins.

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Figure 1: Barcode locations on cartons

3.3 Allocating barcode numbers It is required that all products sold through Super Retail Group display a barcode number with a unique company prefix obtained from GS1. This will ensure that the barcode numbers used are registered and solely owned.

When submitting new line data every retail unit and trade units (inners, outer and/or shippers) should have unique barcode numbers provided by the Trade Partner. For private branded products, merchandising team will be providing SRG GTINs to the Trade Partners for use on private branded products.

When purchasing from a barcode on-seller there is a high possibility that the barcode numbers you have purchased are still being used by a GS1 registered company. If a different business decided to obtain GS1 membership and the barcode numbers that you are currently using were assigned to them by GS1 then they are legally entitled to use them.

3.4 Allocating barcode numbers to a printed publication (books, manuals, magazines and guides) You do not need to use a separate GS1 company prefix. To allocate a GTIN you need to identify your ISSNs or ISBNs as they can be used as the basis of a GTIN barcode. When allocating for the first time, it may be best to consult with GS1 directly on 1300 227 263 or via their website www.gs1au.org/products/gs1_systems/allocating_numbers

Figure 2: Magazine cover with appropriate ISSN barcode. Page 8 of 19

3.5 Generating a 14 digit logistics barcode number from 12 digit retail barcode number

Begin with the retail UPC-A barcode 898639001518 1. Drop the check digit 898639001518 = 89863900151 (now 11 digits) 2. Add a filler zero at the beginning of the number = 089863900151 (now 12 digits) 3. Add the leading variant (1-8) = 2089863900151 (now 13 digits) 4. Use the online calculator to generate the new check digit = 20898639001512 (now 14 digits)

3.6 Generating a 14 digit logistics barcode number from 13 digit retail barcode number

Begin with the retail EAN-13 barcode 9327303099588 1. Drop the check digit 9327303099588 = 932730309958 (now 12 digits) 2. Add the leading variant (1-8) = 2932730309958 (now 13 digits) 3. Use the online calculator to generate the new check digit = 29327303099582 (now 14 digits)

Note: When adding a leading digit the general rule is to use “1” for an inner level of packaging and “2” for an outer.

3.7 When to change a retail barcode number Generally a separate unique GTIN is required for every new version of a trade item and for every variation of a retail item. However there are cases when a GTIN does not need to be changed. The following link outlines the requirements and recommendations from GS1 - www.gs1.org/gtinrules

. Do not re-use a deleted GTIN until a minimum of four years after the date that you last issued the item into the market place. (If companies wish to extend the period of time before a GTIN is re-used, beyond the minimum of four years, this is acceptable.) This includes any GTIN, no matter what level of packaging it relates to.

3.8 When to change the trade unit barcode number Typically the trade unit barcode only needs to be changed whenever the retail barcode is changed.

There is a circumstance where the trade unit barcode does need to be changed when the retail barcode does not. For example, if the content quantity changes in the trade unit then the trade unit barcode number must also be changed.

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4 Labelling

4.1 Retail labelling . Product description (detailed – including all variants) . Retail barcode . Gross weight (kg) if product weighs 10kg or over . Applicable warning (this includes the shipper)

Recommended (in addition to the above labelling requirements) . Brand . Part number (should be the same as the one that is displayed on the trade unit and the same as SRG uses to order the stock)

Kitting products (in addition to the above labelling requirements) . Kitting identifier (e.g. 1 of 2, 2 of 2) . Gross weight (kg) on each part if it weighs 10kg or over . Applicable warning label (this includes the shipper)

Note: Tick-box information should not be used.

Figure 3: Variety of products showing labelling. Weight warning labels must stand out and be placed on all levels of packaging, e.g. shipping carton and unit

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4.2 Trade unit labelling

The following requirements must be printed (not handwritten) on adjacent sides of every level of trade unit packaging: . SKU/PLU (SRG private branded products only) . Product description (includes product, variant and size as printed on the retail unit) . Total quantity of retail units within . Total gross weight of the trade unit (kg) . Warning labels if applicable (displayed close to the gross weight) . Advisory symbols or labels if applicable

Recommended . Part/style number (as printed on the retail unit) . Trade Partner details and/or Brand name . on the carton should be clearly readable when standing within a one metre distance Note: Labelling for plastic wrapped trade units to be displayed on two opposite sides if adjacent cannot be achieved.

Directional stacking logos ‘THIS WAY UP’ or

The optimum pallet stacking configuration on the top of the Example: trade unit (outer only)

Care directions if contents are fragile ‘HANDLE WITH CARE’ or ‘FRAGILE’ or

Figure 4: Labelling (shipping marks) with appropriate warning labels

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In addition to mandatory labelling outlined in section 4.2 the following should also be displayed on import cartons: . Purchase order number . . Carton count . SSCC (if applicable)

Figure 5: Recommended import labelling

4.3 Kitting requirements

A typical example of a kit is a grouping of items such as part of a starter paint kit, or a BBQ that comes in two or three separate packages.

EXAMPLE – BBQ that is broken into two separate parts – each carton containing one part.

Part 1 EACH (retail) barcode at 150% magnification  SKU/PLU (SRG private branded products only)  Product description (includes product, variant and size as printed on the retail unit)  Brand  Total quantity of retail units within  Total gross weight of the trade unit (kg)  Warning labels if applicable (displayed close to the gross weight) PART 1 of 2 (large preferably coloured)

Part 2 EACH (retail) barcode at 150% magnification (different to Part 1)  SKU/PLU (SRG private branded products only)  Product description (includes product, variant and size as printed on the retail unit)  Brand  Total quantity of retail units within  Total gross weight of the trade unit (kg)  Warning labels if applicable (displayed close to the gross weight) PART 2 of 2 (large preferably coloured)

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Figure 6: Two part pick with clear markings on each carton and unique retail/unit barcodes

Mark cartons as “MIXED SKUs” if there are multiple SKUs (PLUs/part numbers) per pallet/carton.

. Remove pre-existing labelling and barcoding. Separate (bundle) SKUs and include gross weight, and warning labels if carton falls into weight categories (refer Table Pg 14). NOTE: No barcode required for a mixed SKU carton.

Figure 7: Mixed carton labelling

Mark cartons as “PARTIAL” if carton does not contain full quantity. . Amend the gross weight, quantity and place vertical ‘dark’ line through barcode, preferably over white bar. This will ensure barcode reads invalid.

Figure 8: Partial carton labelling Page 13 of 19

4.4 Warning labels

Warning Example Required Wording Applies To Description of Requirement

WARNING: BULKY 10 – 16kg Consider two person lift or and mechanical aid 180L or > 1. Warning labels must be displayed on adjacent sides.

2. Must include handling illustration/image. 3. Must include ‘Required WARNING: 17 – 35 kg HEAVY Wording’ and “WARNING” Consider two person lift or 17 – 35kg must be in bold as well as mechanical aid the category that the warning applies to.

4. Weight warning category should be kept as narrow as WARNING: 36 – 50 kg VERY possible (not 17 – 50 kg). HEAVY 5. Should stand out from 36 - 50kg Two person lift or mechanical existing labelling/artwork aid required (eg: fluorescent colours or thick black border).

6. Minimum width is 90mm (standard business card WARNING: 51+ kg EXTREMELY 90mm x 55mm). HEAVY 51kg or > Team lift or mechanical aid required

Visibility is key:  Warning labels may be a black and white sticker or incorporated into the pre-printed packaging design. Triangular versions may be acceptable.  When mono, direct to carton, include a solid border to highlight the warning.  Contrast may need to be added to aid visibility, therefore consider an alternate colour or overprint, if necessary. SRG prefers fluorescent colours.  Warning labels must not cover any other shipping marks, labelling or barcodes.  Warning label images, both colour and mono, can be downloaded from SRG website.

In addition:  For products over 36kg, multiple packages should be considered.  BULKY labels are not to be used in conjunction with any other weight warning labels.  We recommend products/cartons over 1.2m display warning labels at alternate ends.

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4.5 General compliance markings

Other labelling that may be required is based on the relevant legislation for that product and could be in addition to SRG requirements. This may include, but is not limited to, Dangerous Goods diamonds and directions, or medical and environmental advice. Most compliance marking that must be included in packaging is product specific and is too broad ranging to address here.

All products supplied to the SRG of companies must comply with all relevant Commonwealth and State legislation including the relevant product safety and information standards. It must be emphasised that any “claim” on the product is supported by the appropriate facts, for example, if packaging claims to be “recyclable” we should be able to support these claims.

Imported goods should carry country of origin information in English, in prominent and legible characters. Where products are imported from countries not using metric measurements e.g. US and in some instances UK, units of measurement should be changed to metric from the imperial. If a product has been identified as Dangerous Goods, it must carry information about the volume of the contents, not just the volume of the packaging.

All products supplied to our SRG of companies for distribution in New Zealand must comply with all relevant New Zealand legislation including the relevant product safety and information standards. To find out about product safety and information standards refer to the appropriate government departments or applicable standard.

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5 Packaging

5.1 Different methods of packaging . Hang sell (e.g. Clam shell, blister pack) . Cardboard . Plastic bag/poly bag/plastic wrap o Recommend red, black or opaque plastic bags. Retail barcode must not be visible from the next level of packaging if a clear bag is used. This can be achieved by facing the last retail barcode back to back or placing a card of coloured at the back to stop the retail barcode being scanned.

5.2 Packaging requirements

. Should be designed to protect the product and those that need to handle it. o It will not deform or collapse from the weight of its own contents when lifted. o Handles are to be used where appropriate. o Sharp items must have a durable protective shield over the sharp tip/edge within the retail packaging to protect against personal injury. . Minimise the potential for theft, tampering, and components becoming loose. o The contents are easily accessible when required, yet will not open unexpectedly. . Able to display all mandatory information – swing tag to be used if required (retail only) . Be tailored to the shape of the contents to minimise the contained air space. . Account for potential exposure to moisture during transport/storage. . It is sufficiently robust and stable when stacked in a container or on a pallet.

5.3 Packaging to avoid

. Metal staples . Padding or packing peanuts . Metal straps are not to be used

5.4 The Australian Packaging Covenant (APC)

The SRG is a signatory of the Australian Packaging Covenant (APC) which was previously referred to as the National Packaging Covenant (NPC). This enlistment requires our company to meet certain Key Performance Indicators (KPIs) under the covenant which relate to packaging design, packaging recycling and product stewardship. Upon becoming signatories we have made several commitments that are publicly viewable in our Action Plan on our corporate website www.superretailgroup.com/about-us/our-community-and-environment

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As a part of these commitments Trade Partners producing products for the group under private brand names will be required to adhere to the APC’s Sustainable Packaging Guidelines (SPG), which is available on our corporate website www.superretailgroup.com/working-with-us/

The guidelines assist the design, manufacture and end-of-life management of packaging and advise companies about the issues they need to consider when reviewing their packaging to make it more sustainable.

The SRG urges all Trade Partners to comply with the SPG in order to reduce the possible impact our products have on our community and our environment.

For private brand retail units the following labelling is required:

If the packaging, or any part In case only some part of packaging of the packaging, is is recyclable, a qualifying statement In case the product is recyclable one of the must be presented below the recyclable following logos must be used recycling symbol

Figure 9: Recycling symbols with qualifying statements

If the cardboard has been sourced from a renewable resource this should be noted, for example a source certified by the Forest Stewardship Council (www.fscus.org). If plastic is used, it should always be a recyclable type and display a recycling logo that indicates which type to help responsible disposal.

Due to our Australian Packaging Covenant commitments as stated in the previous section, private brand retail units are required to:

. Have their packaging sourced from recycled products as much as possible.

. Use packaging that is fully recyclable.

. Endeavour to produce packaging that is not disposed of upon purchase and maintains a useful role in the life of the product.

. Use renewable resources where the use of recycled packaging isn’t feasible (with legitimate certification, such as the Forest Stewardship Council, www.fscus.org).

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5.5 SSCC The company responsible for marking the logistic unit is responsible for issuing the SSCC.

The SSCC can be reused once 12 months has elapsed, from the time of issue, providing the original logistics unit is no longer in existence.

. The delivery labels should be located so the lower edges of the SSCC vertical bars (lowest barcode on the label) are exactly 32mm from the base of the carton. The label should be positioned so that no part of the barcode (including light margins) is less than 19mm from any vertical edge of the carton.

. Barcode must be printed in picket fence orientation.

. A6 minimum size of label.

. SSCC to be placed next to any relevant pre-existing labelling/barcodes.

Figure 10: Location of delivery label (with SSCC) on a shipping carton to GS1 standards

Figure 11: Location of delivery label (with SSCC) to GS1 standards on an outer carton with the unit already marked with a pre-existing barcode for a unique SKU/product

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. For all pallets the logistics labels should be located between 400mm and 800mm from the surface on which the pallet stands and no closer than 50mm from the vertical edge. Barcodes shall be in picket fence orientation (bars and spaces should be perpendicular to the base). For the actual label, the standard A6 format (105mm x 148mm) is sufficient for most requirements, but this can be made smaller as shown in the example.

Figure 12: Location of the logistics (pallet) label

Please refer to the Supply Chain links for Super Retail Group Terms and Conditions - Distribution Centres and/or the EDI Trade Partner Information Guide from the Group website.

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