Wines & Spirits Market Report - Anti Counterfeit & Brand Protection Study 2015

Dublin, Jan. 15, 2016 (GLOBE NEWSWIRE) -- Research and Markets (http://www.researchandmarkets.com/research/dkb54k/wines_and_spirits) has announced the addition of the "Wines & Spirits - Anti Counterfeit & Brand Protection" report to their offering.

Wines & spirits are:

- Widely counterfeited
- Subjected to various forms of tampering, refilling and / or dilution
- Targeted by smugglers (particularly between countries with contrasting high & low excise tax regimes).

Counterfeiting operations in particular can be scaled up and can be highly lucrative and are known to be often linked to organised crime networks and in some cases terrorist groups.

Look-Alike Counterfeits Versus Refilling Of Genuine Empty Bottles

The problem of copy or look-alike products is widespread for spirits and also wines. Such copy and look-alike products aim to perform the same function as a genuine product, but are produced by an independent manufacturer under a similar name, and nearly always are of inferior quality.

The products are sold in markets where consumers are vaguely familiar with Trade Marks and international brands but often have little comprehension of English - All major spirits brands are vulnerable to such attacks. Nonetheless it is clear that such challenges have by no means deterred counterfeiters in China.

Unfortunately, no matter how sophisticated the on-bottle devices may be and how many steps are taken to protect a genuine empty glass bottle to prevent illicit copying or reproduction of a particular glass bottle, the widespread practice of obtaining empty genuine bottles and refilling them tends to subvert this type of approach brand protection. This practice is particularly prevalent in China and needs to be factored in to any brand protection strategy.

Counterfeiters are generally compelled to rely on either:

- Look-alike counterfeits using standard bottles which can only approximate to the appearance of custom made bottle
- Collecting and re-filling empty used bespoke proprietary bottles and this generally means that the original genuine label is still attached to the bottle.

All major wines & spirits brands are vulnerable to such attacks and both approaches are widely used by criminals today.

Look-Alike Spirits Bottles

Such copy and look-alike products aim to perform the same function as a genuine product but are produced by an independent manufacturer under a similar name, and nearly always are of inferior quality. The products are sold in markets where consumers are vaguely familiar with trademarks and international brands.

Worthy of note are the spelling mistakes on the labels. This is quite common and is a strong indicator of a counterfeit product. It seems likely that the actual glass bottles may be commodity standard bottles obtained on the open market.

The Fine Wine Empty Bottle Trade

Increasingly, counterfeiters have been finding that it can be easier to obtain and refill genuine empty bottles of high end wines & spirits than to try to replicate original glass bottles. With this approach the original genuine label is usually still attached to the bottle.

China's booming wine market has created an extraordinary demand for empty bottles of famous wines (primarily from prestigious French vineyards) with fraudsters willing to pay up to $475 USD (or even more for something really special) for a good bottle that can be re-filled with something less expensive.

Fine wine counterfeits in China range from the glaringly obvious to the very subtle (for example by refilling a Chateau Lafite '82 labelled bottle with Chateau Lafite '85 wine (which is quite a lot less expensive). In a country where, for example a highly desirable Chateau Lafite Rothschild 1982 can command as much as US$5,900, the empty bottle can fetch as much as $1,500 USD on the black market (the condition of the empty bottle is of course critical and affects the price).

For fine wines, an important skill for the counterfeiter is in the re-corking and re-capsuling. In fact fine wines (pre-1965 or so) often tend to have been re-corked anyway and this plays right into the counterfeiter's hands.

In response, some European wine exporters have been campaigning for restaurants to:

- Smash the bottles after the genuine wine has been consumed so that they cannot be re-filled
- Also ensure that capsules are destroyed so that they cannot be illicitly re-used.

Key Topics Covered:

Executive Summary

1 Introduction

2 Tax & The Role Of Government

3 Wines

4 Spirits

5 Supply Side Industry Structure

6 A Strategic Approach To Brand Protection

7 Security With Packaging

8 Glass Bottles - Wines & Spirits

9 Closures, Corks, Shrink Sleeves & Capsules

10 Smart Phone Authentication - The New Norm?

11 Market Sizing - Wines & Spirits

Companies Mentioned

- Diageo
- Guala Closures Group
- Noel Corporation
- Reynolds Group
- The Scotch Whisky Association

For more information visit http://www.researchandmarkets.com/research/dkb54k/wines_and_spirits

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