Fake alcohol nemesis! Wine comes with "identity verification" for consumers to trace the year of production

Transparency of goods has always been a serious issue in China, especially when high-priced items turn out to be counterfeits, causing significant losses. Blockchain company VeChain has developed a traceability platform for goods to combat illegal alcohol products. Apart from enhancing transparency of goods, sales volume has also significantly increased.

According to the company's statement on Tuesday, the wine traceability platform developed by VeChain is now overseeing more than twenty varieties of wine in the Shanghai Free Trade Zone.

The Shanghai Wine and Liquor Blockchain Alliance, established in 2018, aims to improve logistics and quality standards in the evolving industry as China's middle class embraces this lifestyle indulgence. However, with the growth in consumption, counterfeit products are also on the rise. Reportedly, Chinese authorities seized nearly 65,000 counterfeit alcohol products worth over $4 million in a span of 5 months.

Equipped with NFC Traceability

As a measure to combat illicit wine trade in China, Shanghai Waigaoqiao Import Comapny (D.I.G.) is a major importer in the region and has collaborated with the public blockchain project VeChainThor to develop a luxury wine authentication system. The latest registered wine is the Australian Shiraz Penfolds Bin 407, retailing for approximately $60 according to Vivino.

The wine bottles are equipped with Near Field Communication (NFC) chips to track the vintage's origin. Furthermore, the wine traceability platform is overseen by two government agencies, with information stored on the blockchain independently verified by auditors such as DNV GL.

D.I.G. reports that since the introduction of this feature, wine sales with authentication have increased by 10%. It's not just in the wine sector, as other food products utilizing traceability features have also shown significant growth in sales. French supermarket chain Carrefour reported a significant increase in sales after tracking their Mousline mashed potatoes production with Nestle's blockchain technology.

Following the announcement, the wine traceability system is set to expand to over 500 retail stores in Shanghai. Currently, three stores are equipped with the Penfolds Bin-407 bottles supported by VeChainThor.

The enterprise-centric VeChain ecosystem aims to improve supply chain management. Several companies including automakers BMW and Renault, as well as global quality registrar DNV GL, use the management system to track products throughout the manufacturing lifecycle.

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