Can Blockchain Tackle Fake Wine and Spirits Sales?

It is quite difficult to distinguish between fake and real alcohol, and people who purchase counterfeited ones don’t realize it until it is too late. Unfortunately, based on The World Health Organizations’ reports, 25% of the alcohol consumed worldwide is unrecorded. In fact, fake alcohol has also become a top cause of death for tourists travelling in unfamiliar locations. Sales have grown exponentially during the pandemic period as well. 

What are the major risks of fake wine and spirits circulation?

The rise in counterfeit alcohol sales is undesirable for several reasons, particularly the following:

  • It reduces customer trust for genuine wine and spirits brands
  • Spiked alcohol can be fatal, and is extremely harmful for health
  • It causes huge monetary losses for authentic wine brands

How can blockchain solutions help curb fake alcohol sales?

Blockchain technology has gained popularity among wine and spirits brands looking to improve business efficiency and customer engagement. Recent trends have also proved that it is helpful in identifying and curbing fake alcohol sales in the following ways:

verifying wine and spirits authenticity

1. Creates smart labels or NFCs for each bottle for instant verification:

Verifying wine and spirits authenticity usually tends to be a tricky process, but it is simplified using blockchain technology. It is possible to use smart QR code solutions to create smart labels for each bottle. Any customer with a smartphone can simply scan the label to access detailed information about the product and instantly verify authenticity. NFCs are attached to bottle caps so that it becomes hard to replicate the brand’s unique data design once the seal is broken.

2. Digitizes all bottle data for better management and security:

Keeping paper-based records of bottle information is risky, particularly because it is easy to manipulate and tamper with. A much safer option is to digitize all product information and store it as irrefutable records in the blockchain network. All bottle-related transactions get automatically updated under unique digital assets and are easily accessible when required.

Blockchain enables end-to-end wine traceability

3. Makes each bottle provenance traceable from the vineyard to the shelf:

Blockchain enables end-to-end wine traceability that benefits both brands and customers. Detailed provenance data gets recorded in the blockchain network, which further improves business transparency among customers. Brands can ensure that their bottle data remains accurate and traceable from start to finish, and thereby protect their consumers from purchasing counterfeit bottles.

4. Prevents the functioning of unauthorized sales pathways:

Grey marketing and moonlighting are common issues in the wine and spirits industry, and it is not often practical to take preventive measures. However, implementing blockchain wine solutions is a great way to tackle the problem and shut down unauthorized sales pathways once and for all.

5. Empowers customers to find out product data by themselves:

Through simple smartphone scans, it is possible for customers to trace the origin of wine bottles right from the store, and figure out authenticity on their own. This is generally a time-consuming and expensive process, but bottle digitization makes things quick and cost-effective.

Access accurate analytics on counterfeiting trends across their store locations

6. Offers detailed updates on bottle counterfeiting trends and hotspots:

Blockchain-driven platforms like Authlink enable brands to access accurate analytics on counterfeiting trends across their store locations. This helps brands understand relevant counterfeiting issues and come up with best solutions to curb them. This is a great way to take preventive measures and get rid of the issue once and for all in the future.

Why is the Authlink platform ideal for implementing wine blockchain strategies?

Wine and spirits brands rely on Authlink’s blockchain-driven services to protect their bottle authenticity for the following reasons:

  • Simple and easy-to-use platform
  • Seamless supply chain management
  • Quick bottle authentication across the digital ecosystem
  • Traceable digital identities for each bottle 
  • Real-time insights and analytics

Tackle wine counterfeiting issues with Authlink by signing up for the beta version here or scheduling a demo here.

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