In the global battle against counterfeit goods, one industry faces particularly severe consequences: the alcohol market. Counterfeit alcohol poses serious risks to public health, safety, and consumer trust.
To effectively combat this menace, traceability emerges as a critical component. By implementing robust traceability measures, we can safeguard consumers, protect legitimate businesses, and uphold the integrity of the alcohol industry.
Counterfeit alcohol presents a multifaceted threat. Not only does it undermine the revenues of legitimate producers and distributors, but it also endangers the health and safety of consumers. Substandard ingredients, improper production processes, and inadequate hygiene standards in counterfeit alcohol production facilities can result in severe health consequences, including poisoning, blindness, and even death.
Moreover, counterfeit alcohol often evades taxation, depriving governments of significant revenues and funding that could be allocated towards public services and initiatives.
One of the most compelling arguments for traceability in combating counterfeit alcohol is its potential to enhance consumer safety. By implementing traceability technologies such as serial numbers, QR codes, or RFID tags, consumers can verify the authenticity and origin of alcoholic beverages before making a purchase.
For instance, in China, consumers can scan QR codes on bottles of liquor using their smartphones to access information about the product's history, including the source of raw materials, manufacturing processes, and distribution channels. This transparency empowers consumers to make informed choices and avoid counterfeit products that pose risks to their health and well-being.
Furthermore, traceability enables authorities to track and intercept counterfeit alcohol throughout the supply chain, from production facilities to retail outlets. By establishing a digital trail of each product's journey, law enforcement agencies can identify and dismantle illicit networks involved in producing and distributing counterfeit drinks.
For example, in the United Kingdom, HM Revenue & Customs employs the Alcohol Wholesaler Registration Scheme (AWRS), which requires wholesalers to register and undergo due diligence checks to ensure compliance with tax laws and prevent sale of substandard drinks.
In addition to safeguarding consumer safety, traceability contributes to protecting legitimate businesses and brands within the alcohol industry. Producers and distributors can authenticate their products, differentiate them from counterfeit alternatives, and safeguard their brand reputation by implementing traceability technologies.
For instance, Diageo, one of the world's largest spirits producers, utilises blockchain technology to trace the journey of its products from distillery to consumer, ensuring authenticity and quality control at every stage of the supply chain.
Traceability facilitates collaboration and information sharing among stakeholders within the alcohol industry and beyond. Producers, distributors, retailers, and government agencies can exchange data and insights to identify emerging counterfeit threats and share best practices.
The writer is the CEO of the Anti-Counterfeit Authority.
