Packaging company makes push at radio frequency identification

By Ahmed ElAmin

- Last updated on GMT

Related tags Rfid

Could radio frequency identification (RFID) be incorporated
directly into bottles and other packaging materials rather than
being slapped on by processors at the shipping stage?

That's the possibility being held out by Rexam's Felix Helander, director of the company's business intelligence division, who told FoodProductionDaily.com that this could be the future forpackaging companies.

"The technology to incorporate RFID right into packaging is not there right now,"​ he said in an interview. "It's in the future. We are looking at this as apossibility."

The question came up during a discussion on Rexam's publication of a study showing how brand owners can design personalised promotions and drive consumer purchasing through the use of thetechnology.

Helander says Rexam is making a bid to drive the use of radio frequency identification (RFID), by showing its customers how it can be used at the consumer end of the the supply chain.

The study by UK-based Rexam is highly unusual in that it is published by a packaging company. The drive to use the technology has mainly come from retailers and RFID technology suppliers.

RFID has long been touted as the future of logistics for all companies by allowing retailers and suppliers to track goods throughout the supply chain. However high prices for tags and systems hasheld enthusiasm at bay despite mandates from retailers like Wal-Mart, which last year announced it would require its top suppliers to implement the tracking technology.

Consumer reaction against the technology erupted due to privacy concerns and has prevented widespread use on the shelves and at the checkout. Metro stores in Germany is using the technology in testlocations with the brand name "Future Store".

"We believe that far from a threat to consumers' privacy, RFID presents a wealth of benefits and opportunities for retailers and brand owners to meet consumer needs and concerns,"​Rexam's Helander said. "For example, people say that queuing and stores that are difficult to navigate are two of their major bugbears when they go grocery shopping - RFID can easily solvethese issues."

In addition to helping make targeted promotions at the shelves, Rexam believes RFID tags can be positioned so that supermarkets are alerted if any tampering occurs. RFID may also helpreduce counterfeiting and make products easier to use.

Related topics Processing & Packaging

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