Phenix Label announced a significant expansion in its production capacity for radio-frequency identification (RFID) technology, specifically designed for hard-to-tag retail items, such as water-based food packaging that has not been previously tracked with RFID tags. The company, which produces prime labels and flexible packaging, shared the news this month at the NRF Retail Show.
To understand the impact of this announcement, Packaging OEM will explain RFID packaging, describe how it effects both manufacturers and consumers, detail Phenix Label’s RFID offering for water-based food items, and share how these tags can be combined with 2D barcodes.
RFID and its manufacturing impacts
An RFID label is a special type of marker that consists of a microchip and antenna. It stores and transmits information when scanned by an RFID reader, such as a fixed reader at a warehouse or even a consumer’s smartphone.
RFID tags can be used on the manufacturing side to track inventory as they provide a quick, accurate, and automated way to manage stock across various industries. On the retail side, these tags can be used to enable smart checkout systems and prevent theft.
Phenix Label’s solution for water-based food items
Phenix Label offers tear-away RFID labels, which the company credits for reliable tracking alongside package recyclability. Additionally, the company’s packaging design improves reliability of RFID scanning for liquid-filled consumer packaged goods (CPG) and food items. These packages have historically not been tracked using RFID because water-based products can change tag performance, limiting reliability of tracking.
The Phenix Label packaging design solves this challenge with a tear-away RFID-enabled label positioned above fill levels. This format improves scanning at large retailers and allows consumers to easily remove RFID labels and recycle empty bottles, therefore increasing sustainability.
“Phenix Label continues to invest in advancements that not only improve the reliability and sustainability of RFID-enabled packaging, but also increase throughput of high-quality package designs that help food and retail brands truly stand out on the store shelf,” Mark Volz, vice president of sales and marketing, Phenix Label, said in a statement.

Inventory impact
By expanding its RFID offering, Phenix Label allows manufacturers to ramp up production volume at a critical time with many consumers are shopping online. With the increase in e-commerce, accurate inventory is critical to make sure purchased items are in stock for customer satisfaction. This accounts for more accurate inventory and traceability for both grocery and health brands.
RFID now accounts for 32% of food traceability, according to Phenix Label, and that number is growing at nearly 10% each year. The company says this is due to RFID enabling real-time tracking throughout the supply chain, along with helping food retailers meet standards, like in the event of a product recall.
“Phenix Labels’ initiative to double its capacity for hard-to-tag RFID items demonstrates the increasing demand for innovative solutions in the ever-evolving landscape of food production and distribution,” said Michael Sanders, vice president of global channel sales at Avery Dennison, which is collaborating with Phenix Labels. “As the industry strives to meet consumer expectations for fresh products, RFID technology plays a pivotal role in ensuring customer satisfaction, fostering industry innovation, and driving business growth.”
Tag-teaming RFID with 2D barcodes
RFID tags are also being used in conjunction with 2D barcodes. A 2D barcode is a two-dimensional barcode made up of dots, squares, and other shapes to encode information in both dimensions. It can hold significantly more data, up to 4,000 characters, compared to the 12 digits of a 1D barcode.
2D barcodes can include dynamic content for consumer engagement, improve traceability, recall information, and reduce package waste. These 2D barcodes are being paired with RFID codes to capture more information. Click here to read how 2D barcodes are scanning in a new wave of digital transformation in packaging.