Addressing Counterfeiting and Adulteration Increases Sales by 25%

Case Study – Spirits

Addressing Counterfeiting and Adulteration Increases Sales by 25%

The Issue

Authentix implemented a program in South America to help address a spirits counterfeiting issue. With annual production of over 60 million bottles of various spirits (approx. 50 million liters), this market provided the largest single source of state government revenue—over $150M in previous years.

The Solution

To solve the issue, the program used a combination of in-product, on-package marking and distribution channel monitoring. For authentication purposes on packaging, an overt feature was added as tamper evidence for consumers and a covert feature was added for official retail inspectors via handheld field verification readers and test kits. In addition, covert features were incorporated into the spirit itself for field verification and forensic lab verification.

The Outcome

Within the first year of the program, 75 million liters of spirits had been protected (approx. 100 million bottles). More than 1300 inspectors in 28 states had inspected over 300 retail outlets. Of these, 10% were found to contain counterfeits and 5 retail outlets were investigated resulting in arrests. The brand owner experienced a 25% increase in sales over the same time period.