CPG Terms Explained, a series by Cyril Ovely
Pick any product off a shelf and it carries several identities at once, assigned by different people for different reasons. This article is the map: one comparison table, one product followed from brand to checkout, and a clear answer to what each code is actually for.
Most confusion in this space comes from five distinct ideas being used almost interchangeably. Here they are, side by side:
| Code | What it is | Who assigns it | Standardized | Format |
|---|---|---|---|---|
| GTIN | The global family of product identification numbers | GS1 (licensed) | Yes | 8, 12, 13, or 14 digits |
| UPC | The 12 digit GTIN, used mostly in the US and Canada | GS1 | Yes | 12 digits |
| EAN | The 13 digit GTIN, used worldwide | GS1 | Yes | 13 digits |
| Barcode | The machine readable symbol printed on the pack | Whoever prints the label | Symbologies are standardized, payloads are not | Bars and spaces, or a 2D matrix |
| SKU | A company's own internal code for a sellable item | The company itself | No, never | Alphanumeric, any structure |
Read down the table and the pattern is clear. GTIN, UPC, and EAN are the same idea at different lengths, all licensed from one standards body. The barcode is not a number at all but a picture of one. And the SKU is the only code in the list that belongs to the company using it. If you remember nothing else from this series, remember that split: global numbers, one symbol, and a private name.
Tables are abstract, so follow one item, the Alpha Coffee Original 200g jar used throughout this series, from launch to checkout:
One jar, four identities: the brand's SKU, the distributor's SKU, the retailer's item number, and the GTIN under the barcode. Each exists because a different organization needs to manage the same physical thing in its own systems. The mapping between them is the quiet infrastructure that makes the whole chain agree.
A point worth stating plainly, because it is often overstated: GTIN requirements are channel rules, not law. Sell only through your own store and a SKU is enough; you can even barcode it yourself in a general purpose symbology. Sell through supermarkets, large retailers, or major marketplaces and they will require GS1 licensed GTINs, validated against the GS1 registry. Some marketplaces grant exemptions for handmade or private label items in specific categories, but the default expectation for branded CPG products is a licensed GTIN at every packaging level.
Can I invent my own SKU codes? Yes. SKUs are internal and unregulated, so the format is yours to design. The discipline is in keeping codes consistent, documented, and mapped to every external identifier the product carries.
Do I need to buy a barcode? If your channels require it, you license a GTIN from GS1, and the barcode symbol is generated from that number. The license covers the number; printing the symbol is artwork.
Is an EAN just a European UPC? No. EAN-13 is the global 13 digit form, and UPC-A is the 12 digit North American form. They are one numbering family, and any UPC becomes a valid EAN by adding a leading zero.
Does the barcode store the price? No. The barcode encodes a number, and the system looks up the price. That is why the same product can carry different prices at different stores without changing the packaging.
Product identification is a small system with a clean logic. GS1 owns the global numbers, UPC and EAN are its two regional lengths, the barcode is the symbol that carries them, and every company that handles the product adds its own SKU on top. None of this is glamorous. But it is the difference between a supply chain where every scan confirms reality and one where every scan is a small bet on someone's spreadsheet.
For teams running distribution, the practical lesson is that product master data, the SKUs, the GTINs per packaging level, and the mappings between them, deserves the same discipline as finance or payroll. Keep one register, assign codes before launch, and never reuse what is retired. The system rewards exactly that much care. In Lighthouse, this product master data sits underneath distribution, execution, and trade workflows, so orders, deliveries, and store audits all resolve against the same identifiers.
Lighthouse connects distribution, execution, trade, and supply into one system your commercial teams act on at the store and SKU level.
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