Assuming that you're on SQL Server 2005 or greater, you can use a CTE with ROW_NUMBER():

SELECT  *
FROM    (SELECT ID, SKU, Product,
                ROW_NUMBER() OVER (PARTITION BY PRODUCT ORDER BY ID) AS RowNumber
         FROM   MyTable
         WHERE  SKU LIKE 'FOO%') AS a
WHERE   a.RowNumber = 1