Author: Andree Bourgeois

The Dark Arts of Counterfeiting

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Author: Andree Bourgeois

Part 2 of the ABC’s of Brand Protection series by Authentix focusing on the global scope of the counterfeiting epidemic and how to take action against it to protect your brand, your customers and your revenue.

By the Authentix Brand Protection Team

Brands are working harder than ever to provide transparency into their business practices. The customer trust and loyalty that this creates is invaluable and the holy grail of marketing departments. A sure-fire way to destroy that trust is to be subjected to counterfeit controversy – product falsification, consumer harm, or news of legal action against a brand can prove toxic to any popular brand.

Organized criminal enterprises have developed sophisticated networks of willing players throughout the global supply chain in practically every industry to cause such destruction. Some of their tactics include:

  • Counterfeiting
  • Diversion
  • Tampering/Reuse
  • Adulteration

Today, companies expand their operating and delivery efficiencies at lower costs with high-quality manufacturing available around the world. However, that innovation comes at a cost by enabling undetectable counterfeit goods to make their way into the supply chain. Buzzworthy brands with growing demand, celebrity clout and premium price points are most-targeted. The resulting inferior quality and/or faulty parts lead to consumer dissatisfaction, recalls, and major safety concerns.

It’s not just back alley transactions and big city flea markets that you need to worry about anymore. The rise of digital marketplaces such as Amazon, eBay, and Etsy (plus countless others that emerge each year) enable and accelerate sales of knockoff goods not only to willing buyers, but unsuspecting ones as well. In fact, according to a 2018 study by the U.S. Government Accountability Office, about 40 percent of a sample of goods bought on popular eCommerce websites were fake. Data collected by the U.S. Customs and Border Patrol between 2000 and 2018 shows that seizures of counterfeit and pirated goods at U.S. borders, much of destined for e-commerce channels, has increased ten-fold.

It is forecast that by 2022, the negative impact of counterfeiting and piracy will drain US $4.2 trillion from the global economy and put 5.4 million legitimate jobs at risk. This impact cuts a wide swath across many industries and businesses including:


  • Pharmaceuticals and OTC Medicines: At least one million people die each year after consuming counterfeit medicines.

  • Tobacco: If the global illicit trade in tobacco was eliminated, governments would gain at least US $31 billion in additional taxation revenue. Curbing this illicit trade could save over 160,000 lives annually by 2030 and beyond.

  • Spirits and Premium Drinks: Counterfeit or illegal alcohol, recognized as “unrecorded” alcohol, is not monitored for quality or taxation. The WHO estimates that 25 percent of the alcohol consumed worldwide is unrecorded.

  • AgroChem: The WHO estimated that counterfeit and adulterated pesticides poison over three million people7 annually and result in over 200,000 deaths mainly in developing countries due to unregulated trade enforcement.

  • Health & Beauty: According to the FBI, counterfeit cosmetics have contained adulterants such as paint thinner, which irritates the eyes, nose, and throat in addition to being flammable and poisonous.

 

In this climate, many companies are thinking more broadly about how to implement coordinated anti-counterfeiting and anti-diversion strategies across their brands and throughout different regions of the world. Just as tamper-evident seals on bottles of pills and liquid formulations became more common after a tampering scare in the 1980s, attitudes toward anti-counterfeiting technologies are beginning to evolve.

For more brand protection basics – why it is necessary, how it works, who is vulnerable, how to implement an effective program, what to look for in a technology partner, and which emerging technologies will help protect your brands in the future – read the The ABC’s of Brand Protection.

Download the eBook

The ABCs of a Successful Brand Protection Program

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Author: Andree Bourgeois

Part 1 of the ABC’s of Brand Protection series by Authentix focusing on the global scope of the counterfeiting epidemic and how to take action against it to protect your brand, your customers and your revenue.

Successful Online Brand Protection Solutions by Authentix

By the Authentix Brand Protection Team

The negative impact of counterfeiting and piracy is projected to drain U.S. $4.2 trillion from the global economy and put 5.4 million legitimate jobs at risk by 2022.1 Are your products protected? They need to be.

If anyone of us were to think about the purchases we made over the years, we’ve probably purchased a counterfeit good. It’s estimated that more than 80 percent2  of all global consumers have unwittingly purchased falsified products. This concept is proliferated by the ever-growing global supply chain and all its complexities that foster an environment lacking required ingredients, quality control, or government oversight. To get ahead of the counterfeiters, brand owners need a brand protection program to shield what matters most to your business – customers, brand, and revenue.

The gaps in the system are magnified even more during a pandemic. In the same week COVID-19 was declared a pandemic, a fake and dangerous rendition of a popular potential therapeutic drug with a street value of more than $14 million was seized by Interpol4 . It’s time to sound the alarm. No one industry is immune to such calculated nefarious acts. Brand owners from health and beauty, food and beverage, pharmaceutical, to apparel experience financial losses and more importantly, added risks to consumer health and safety.

The good news is that today’s anti-counterfeiting solutions to detect and deter fraud are growing more sophisticated, affordable, and accessible. The benefits of a strong brand protection program are three-fold:

  1. Protection of the brand owner’s livelihood – namely its reputation and investments into market-leading proprietary products.
  2. Consumer protection – no brand owner wants their name associated with health hazards or calamities resulting from brand compromise.
  3. Corporate citizenship – proactive companies that deploy product protection programs and are serious about a no-compromise climate are more responsible corporate citizens. This leadership and transparency can contribute exponentially to customer loyalty as it humanizes the brand.

CONSIDER THIS: The global economic value of counterfeiting and piracy could reach U.S. $2.3 trillion by 2022.3

Do you have a strategy in place, with policies and dedicated infrastructure to combat product fraud? Maybe you partner with a trusted third-party technology and solution provider. Maybe you don’t yet have a brand protection program in place. No matter your approach to the counterfeiting issues, knowledge is power.

Counterfeiting is real and impacts everyone in the supply chain. This article addresses a single layer of the importance of brand protection programs. We have more facts, figures and trends in our latest eBook, The ABC’s of Brand Protection. This eBook offers a crash course in how brand protection works, who is vulnerable, how to implement an effective program, what to look for in a technology partner, and which emerging technologies will make a difference.

Sources
1. https://iccwbo.org/media-wall/news-speeches/global-impacts-counterfeiting-piracy-reach-us4-2-trillion-2022/
2. https://www.dhs.gov/sites/default/files/publications/20_0124_plcy_counterfeit-pirated-goods-report_01.pdf
3. https://iccwbo.org/media-wall/news-speeches/global-impacts-counterfeiting-piracy-reach-us4-2-trillion-2022/
4. https://www.bbc.com/news/health-52201077

Chad Crouch Appointed to U.S. Department of Commerce North Texas District Export Council

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Author: Andree Bourgeois


ADDISON, Texas, March 30, 2020 – Authentix®, the authority in authentication solutions, announced that its Vice President of Revenue Operations, Chad Crouch, has been appointed by the Department of Commerce to the North Texas District Export Council (NTDEC). The council members are appointed by the U.S. Secretary of Commerce and contribute leadership and international trade expertise to complement the U.S. Commercial Service’s export promotion efforts. The primary objectives of the NTDEC are to educate the community about international trade and its benefits, including education to promote exports and international trade for companies in the United States. Regional District Export Councils also lobby state and federal legislatures to promote issues that can have a positive effect on international trade for their respective regions.

Individuals appointed to a regional District Export Council become part of a select corps of trade experts dedicated to providing international trade leadership and guidance to the local business community and assistance to the Department on export development issues. “I’m honored to be selected as part of the North Texas District Export Council, Crouch stated. We’ve been very fortunate to have such a great relationship with the United States Department of Commerce and its related agencies when expanding our business internationally. I look forward to assisting other companies in our region in expanding their business as well.”

Authentix has transformed over the past 20 years to a global organization with programs spanning across five continents and offices serving dozens of governments, central banks, and Fortune 100 companies. Today, Authentix derives 80 percent of its revenue from sources outside the United States. In May 2019, Authentix received the Export Achievement Certificate (EAC) from the U.S. Commercial Service Department for its success in acquiring and serving customers in the global marketplace.

Chief Sales and Marketing Officer for Authentix, Kent Mansfield, stated, “Authentix works closely with the U.S. Commercial Service whenever we are expanding solutions and services into new countries, and this has proven invaluable to us in terms of support and guidance. Chad Crouch has been instrumental in furthering our relationship with the U.S. Commercial Service. I can’t think of a better selection for providing guidance and input to the NTDEC.”

About Authentix

As the authority in authentication solutions, Authentix thrives in supply chain complexity. Authentix provides advanced authentication solutions for governments, central banks and commercial companies, ensuring local economies grow, banknote security remains intact and commercial products have robust market opportunities. The Authentix partnership approach and proven sector expertise inspires proactive innovation, helping customers mitigate risks to promote revenue growth and gain competitive advantage.   Headquartered in Addison, Texas USA, Authentix, Inc. has offices in North America, Europe, Middle East, and Africa serving clients worldwide. Authentix® is a registered trademark of Authentix, Inc. For more information, visit https://www.authentix.com.

About U.S. Commercial Service

The U.S. Commercial Service (CS) is the trade promotion arm of the U.S. Department of Commerce’s International Trade Administration. The CS is a part of the U.S. Foreign Service and its commercial officers are diplomats. The CS global network of trade professionals helps thousands of U.S. companies to export goods and services worth billions of dollars every year. CS trade specialists are located throughout the United States, as well as in U.S. embassies and consulates in over 75 countries around the world. The mission of CS is to advance and protect strategic U.S. commercial and economic interests around the world.

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Fuel Authentication & Traceability through the Supply Chain: Advancing Quality & Sustainability

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Author: Andree Bourgeois

The Oil and Gas industry is facing increasing pressure to take urgent actions toward a low-carbon future. Some have responded already by setting bold Net Zero and other ambitious Sustainability targets by 2050. With the current geopolitical landscape, the industry continues to be challenged to innovate in navigating climate and environmental issues driven by constantly changing policy and regulations.

To emphasize the seriousness of the industry’s need to address climate issues, the Energy Institute recently focused on the energy transition as the key theme at IP Week 2020, held in London this February. As a key conference speaker on behalf of Authentix, I had the opportunity to share unique insights on how physical and digital fuel authentication technologies can help reduce emissions, protect the environment, and enable a more sustainable future, while also removing manipulation throughout the supply chain.

Fuel Adulteration’s Impact on the Environment

Fuel adulteration has proven to increase emissions of harmful pollutants from vehicles and worsen urban air pollution that lead to adverse impacts on human health. For example, kerosene, which when illegally added to a nation’s fuel supply, increases levels of carbon monoxide (CO) by as much as 50%. CO is one of the most common adverse by-products caused by adulterants often added to gasoline and diesel supplies to dilute taxable fuels with non-taxed or extremely low-cost materials.

To assess the level of impact of fuel adulteration on emissions, a study was conducted by the Journal of Civil Engineering and Environmental Technology in India, a country where this continues to be a significant and ongoing problem. The study concluded that gasoline adulterated with five percent kerosene was found to have a CO value of 16.4%, while gasoline with a 55% adulteration factor increased the CO value to 51.6%, an alarming increase.

In many countries, fuel adulteration using harmful by-products, waste oils, etc. can make up to 30% of the total volume of gasoline or diesel sold. It’s no secret that petroleum products present a lucrative opportunity for those who wish to deliberately manipulate fuel supplies for illicit monetary gain. Such activity is a huge environmental and financial problem for oil companies and governments alike. In fact, the annual worth of illicit fuel trade is estimated to be $133 billion and growing.

How Fuel Integrity Can be Compromised

Fuel manipulation can occur in multiple ways. If you consider the complex downstream supply chain, there are intentional or accidental vulnerabilities at many points that provide opportunities for fuel adulteration. These include:

  • Diversion
  • Dilution or substitution
  • Theft
  • Human error
  • Equipment malfunctions

When any of these factors occur, it can result in the wrong product used in the wrong application.  Without a traceability solution of some kind, it then becomes difficult to determine where and when the wrong product entered the supply chain.

Finding the Right Solution: Balancing Performance and Cost

To mitigate these challenges, oil companies and government agencies must be able to track and validate the quality and authenticity of their fuel at all points in the supply chain. This requires advanced technologies that can not only authenticate the fuel, but also identify and record meaningful data for product insights to be gained from terminal to retail station.

Marking fuel by inserting an extremely low dose (parts per billion) chemical marker into a petroleum product has become one of the most trusted solutions for enabling the detection of adulterants and to understand where this problem is happening. To provide the highest level of security and effectiveness, Authentix currently provides dozens of governments and branded fuel companies with proprietary and unique covert marker systems that vary in complexity and scope. Detection and measurement can occur in the field, in a laboratory, or both depending on the needs of the organization.

While fuel integrity programs are an effective way to combat adulteration, questions may remain about the quality and legitimacy of the fuel being refined or imported. To address this uncertainty, organizations and governments typically perform fuel quality assurance testing using ASTM standards via third-party laboratories. While ASTM testing is a longstanding and accepted method, it can be very expensive, and results are delayed as organizations struggle to find the balance between performance and cost.

For organizations looking for a more affordable and faster alternative to traditional lab-based ASTM testing, Authentix provides solutions for field use leveraging portable devices using sophisticated chemometric models, which can identify fuel composition and predict the overall quality and chemical properties. Applying this method, field enabled inspectors can simultaneously measure the density and the spectrum of fuel samples modeled to ASTM properties without the expensive and slower lab-based methods. These portable measurement devices can be used for a wide variety of fuels, including gasoline, diesel, jet, and other specialized fuels. In addition, IOT sensors can be installed in downstream locations for monitoring fuel volumes, which aid inspectors to audit consumption, shortages, and assist in demand forecasting.

In many cases, quality, volumetric, and usage data can complement a fuel integrity program with variable-time monitoring and actionable intelligence – enabling testing and visibility at any and all points in the supply chain.

Using Data Intelligence to Bring it Together

The magic bullet is not just the chemical marker itself nor the fuel quality testing method if used independently. But imagine the ability to collect, correlate, and analyse multiple data points from different sources that feed into a single data platform, providing a unique and actionable dashboard view into all elements of the fuel supply chain. As digital transformation continues to permeate the oil and gas industry, Authentix is accelerating its digital technology to provide this platform. The Authentix Information System, or AXIS®, is a cloud-based, integrated set of software applications designed to provide comprehensive and insightful data for our customers to make remediation and enforcement decisions, thereby giving them the ability to rapidly take preventative or corrective action.​

AXIS® report showing month-over-month view of failure results

 

 

AXIS® report showing geographical view of location of stations tested and pass/fail rates

Looking Ahead

The move to a more sustainable future, decarbonization, and lowering adverse impacts of climate change will no doubt take an incredible allocation of time, technology, and resources. By having full visibility and control over the fuel supply chain, our customers are able to deter illicit activity and reduce unauthorized fuels in the market. Therefore, implementing a fuel integrity program has shown to directly improve emissions, reduce pollutants, and improve overall consumer health and safety. In our view, this becomes an important piece of the solution and should become a key component of any Net Zero or Sustainability Plan going forward.

About Authentix

As the authority in authentication solutions, Authentix thrives in supply chain complexity. We provide advanced authentication solutions for governments, central banks and commercial companies, ensuring local economies grow, banknote security remains intact, and commercial products have robust market opportunities. Our partnership approach and proven sector expertise inspires proactive innovation, helping customers mitigate risks to promote revenue growth and gain competitive advantage.

To learn more, email info@authentix.com.

The Assurance of a Well-Designed, Secure Spirits Packaging Solution

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Author: Andree Bourgeois

The right brand protection solutions to protect your product.

 

In a recent article, produced for Beauty Packaging, we introduced the shift in implementing security features to protect your products. There has always been a struggle between brand owners and marketing on where to place a security feature: on-product/in-product or on-package/in-package. The article served as a reminder that today’s technology, combined with the
right domain experience in ink technologies and printing techniques, expands the concept of how to protect products against counterfeiters. It highlighted that different areas of the business, like the marketing team and packaging engineers,
can feel confident that selected security features will not interfere with the packaging aesthetics or production.

Our latest discussion focuses on what is readily available to you and what you can learn about your products to make better business decisions. Two questions you want to be able to answer:

  • Do the benefits of including security features create a positive ROI for the company?
  • Does anyone in the company know how to properly estimate the costs of product adulteration or fraud?

A risk assessment strategy will help answer the above questions by revealing critical data points associated with your high-value products. This assessment will lead to a brand protection solution that is right for you. With the right brand protection solution, you can really ascertain how much your bottom line is impacted by counterfeit activities.

Play defense by using a multilayered approach

At Authentix, we have discovered that the most effective way to protect your branded products is by utilizing a multilayered approach which provides a combination of security features (overt, covert, forensic, digital). This provides a masterful defense against counterfeiting efforts, as detection can be done quickly in the field and enforcement can be rapid—thus limiting the exposure and extent of a problem. Let’s review the various solutions by security feature.

Overt security – holograms, specialty inks, color-shifting inks—features you can see without devices. Well-known effects include:

  • Tamper-evident poly seals, shrink sleeves and induction seals
  • Secure holography with image shift on angular variables (OVD)
  • Security inks such as color-shifting inks—also known as optically variable inks (OVI)
  • Specialty substrates such as UV- or IR-emitting security fibers
  • Digital QR or other visible code
  • Substrate or ink tactile effects
  • Security graphics / overt complexity (print effects/varnish plate anomalies, etc.)

The global economic value of counterfeiting and piracy could reach US$2.3 trillion by 2022.
(Source: International Chamber of Commerce).

Covert security – Ultraviolet inks [UV], infrared [IR] inks, invisible taggants embedded in substrates, and inks with other specialized markers—features you can see only with proprietary devices. These features include:

  • Thermally or magnetically activated inks
  • Pantographs or anti-copy features
  • Visually discernable microtext
  • Scrambled indicia
  • Coin-reactive inks

Visible Digital Codes with hidden secure graphics covert solutions—features are invisible to the average person but detected upon inspection by a trained individual utilizing a specific device.

  • Invisible security inks activated by illumination in invisible spectral wavelengths
  • Hidden images or digital watermarks
  • Micro taggants (machine readable or visible on high magnification)
  • Hidden microtext or micro printing
  • Marks in die-cut profile
  • Deliberate mistakes in small printing fonts or other marks

Forensic – Molecular taggants, DNA, nanoparticle coatings—features only detectable with laboratory equipment.

  • Forensic markers
  • DNA-type inks for forensic examination
  • Spectrographic signature analysis

Digital – A host of solutions, which can include the above, relating to numeric values or digital symbology that enable users to look up related product authentication data either via the internet or through a proprietary localized database.

Most highly secure overt and covert inks available today are compatible with essentially all conventional or digital printing, and applicable on most substrates such as labels, seals, closures, etc. They are also customizable in a variety of colors and coating types.

A winning appearance

Today’s anti-counterfeiting and brand protection technology advancements embody the aesthetic qualities for which your brand is recognized. Beyond maintaining an attractive package on the shelf, it is important to understand what authentication features will satisfy the key stakeholders within your organization. And how will you be able to detect counterfeiting in the field and enforce the law when needed? All of these factors need to be considered and prioritized when working through the various options.

We understand the challenges you face and can help identify and rapidly implement the product security that makes sense. Our 25 years of experience have helped us to design our many technologies to seamlessly integrate within existing ecosystems, such as packaging, printing, manufacturing and other production partners, with the primary goal of limited disruption to existing processes. Contact us to get started.

Download the PDF

The Assurance of a Well-Designed, Secure Health & Beauty Packaging Solution

     |     

Author: Andree Bourgeois

The right brand protection solutions to protect your product.

 

In a recent article produced for Beauty Packaging, we introduced the shift in implementing security features to protect your products. There has always been a struggle between brand owners and marketing on where to place a security feature: on-product/in-product or on-package/in-package. The article served as a reminder that today’s technology, combined with the
right domain experience in ink technologies and printing techniques, expands the concept of how to protect products against counterfeiters. It highlighted that different areas of the business, like the marketing team and packaging engineers,
can feel confident that selected security features will not interfere with the packaging aesthetics or production.

Our latest discussion focuses on what is readily available to you and what you can learn about your products to make better business decisions. Two questions you want to be able to answer:

  • Do the benefits of including security features create a positive ROI for the company?
  • Does anyone in the company know how to properly estimate the costs of product adulteration or fraud?

A risk assessment strategy will help answer the above questions by revealing critical data points associated with your high-value products. This assessment will lead to a brand protection solution that is right for you. With the right brand protection solution, you can really ascertain how much your bottom line is impacted by counterfeit activities.

Play defense by using a multilayered approach

At Authentix, we have discovered that the most effective way to protect your branded products is by utilizing a multilayered approach which provides a combination of security features (overt, covert, forensic, digital). This provides a masterful defense against counterfeiting efforts, as detection can be done quickly in the field and enforcement can be rapid—thus limiting the exposure and extent of a problem. Let’s review the various solutions by security feature.

Overt security – holograms, specialty inks, color-shifting inks—features you can see without devices. Well-known effects include:

  • Tamper-evident poly seals, shrink sleeves and induction seals
  • Secure holography with image shift on angular variables (OVD)
  • Security inks such as color-shifting inks—also known as optically variable inks (OVI)
  • Specialty substrates such as UV- or IR-emitting security fibers
  • Digital QR or other visible code
  • Substrate or ink tactile effects
  • Security graphics / overt complexity (print effects/varnish plate anomalies, etc.)

The global economic value of counterfeiting and piracy could reach US$2.3 trillion by 2022.
(Source: International Chamber of Commerce).

Covert security – Ultraviolet inks [UV], infrared [IR] inks, invisible taggants embedded in substrates, and inks with other specialized markers—features you can see only with proprietary devices. These features include:

  • Thermally or magnetically activated inks
  • Pantographs or anti-copy features
  • Visually discernable microtext
  • Scrambled indicia
  • Coin-reactive inks

Visible Digital Codes with hidden secure graphics covert solutions—features are invisible to the average person but detected upon inspection by a trained individual utilizing a specific device.

  • Invisible security inks activated by illumination in invisible spectral wavelengths
  • Hidden images or digital watermarks
  • Micro taggants (machine readable or visible on high magnification)
  • Hidden microtext or micro printing
  • Marks in die-cut profile
  • Deliberate mistakes in small printing fonts or other marks

Forensic – Molecular taggants, DNA, nanoparticle coatings—features only detectable with laboratory equipment.

  • Forensic markers
  • DNA-type inks for forensic examination
  • Spectrographic signature analysis

Digital – A host of solutions, which can include the above, relating to numeric values or digital symbology that enable users to look up related product authentication data either via the internet or through a proprietary localized database.

Most highly secure overt and covert inks available today are compatible with essentially all conventional or digital printing, and applicable on most substrates such as labels, seals, closures, etc. They are also customizable in a variety of colors and coating types.

A winning appearance

Today’s anti-counterfeiting and brand protection technology advancements embody the aesthetic qualities for which your brand is recognized. Beyond maintaining an attractive package on the shelf, it is important to understand what authentication features will satisfy the key stakeholders within your organization. And how will you be able to detect counterfeiting in the field and enforce the law when needed? All of these factors need to be considered and prioritized when working through the various options.

We understand the challenges you face and can help identify and rapidly implement the product security that makes sense. Our 25 years of experience have helped us to design our many technologies to seamlessly integrate within existing ecosystems, such as packaging, printing, manufacturing and other production partners, with the primary goal of limited disruption to existing processes. Contact us to get started.

Download the PDF

Beautiful and Secure Spirits Packaging

     |     

Author: Andree Bourgeois

Brand protection solutions that allow design and security features to live in harmony.

For the brand manager, packaging designer or packaging engineer, there are many factors to consider when designing new artwork, graphics and security for product packaging. Incorporating higher security and brand protection features into product packaging is becoming more of a priority for many companies because of the  ongoing threat of counterfeiting.

However, it is challenging to mix effective brand protection, great branding and regulatory needs into one design. With different stakeholders involved, there are numerous factors affecting the perspective:

  • Ease of implementation into existing packaging and print lines
  • Regulatory compliance
  • Brand marketing preferences

Those same stakeholders can’t ignore that the resulting impact of consumer reaction can also be critical. How can brand owners navigate these challenges and satisfy multiple stakeholders, while enabling the necessary security features and maintaining the beautiful appearance desired? Today, implementing security or brand protection solutions is possible and the impact doesn’t have to be obtrusive to your packaging medium.

Why You Can’t Ignore the Need for Security

Counterfeit operations have evolved into large, well-funded, sophisticated organizations with their tentacles in multiple countries. They survive on easy access to technology and domain expertise to compete with legitimate and other counterfeit businesses.

Companies have learned (many the hard way) that not implementing product authentication solutions and monitoring for leakage adversely affects the bottom line and potentially the health and well-being of their loyal consumers. More specifically, brand owners have discovered that adding security features on packaging can greatly mitigate:

  • Lost revenue and declining market share
  • Patient or consumer safety and related liability
  • Recalls due to product adulteration and fraud
  • Long-term erosion of consumer confidence and brand value

Counterfeiting a branded product has become easier as the supply chain expands to a global model where product visibility decreases, resulting in more opportunities for illegal activities. For years, many consumers knew of counterfeiting in terms of fake designer handbags, clothing and jewelry. Now, more consumers are becoming aware of counterfeit beauty products such as makeup, hair products, sunscreen and more. Even ‘man’s best friend’ isn’t safe from counterfeit pet food, prescriptions and over-the-counter medicines. (Source: Fake goods are not fake news, Denver Business Journal, Oct. 2018)

Flexible Security Features in Today’s Market

Product security has shifted in the last 30-35 years. In the 1980’s, the first mass deployed authentication feature, in the form of secure holography, began to show up in the industry. Early adopters were major pharmaceutical, wine/spirits and consumer electronics firms. Today, brand protection is on the radar of any company with a significant investment in high-end branded products.

Brand protection begins with the understanding that it is a process and not a product. A product undergoes the product life cycle stages: introduction, growth, maturity and decline. Brand protection as a process is a series of actions, changes and functions all directed toward the pursuit of a return on investment (ROI).

Different levels of security, varying ink technologies, and numerous covert and overt physical features can be applied to all types of packaging to challenge counterfeiters and help you stand out against your competition.

The first step of any brand protection platform is a risk assessment strategy based on the three risk dimensions: product-specific, geographic and supply chain. This then leads to solutions that match the needs recognized by that assessment.

When thinking about a multilayered approach, there are several elements to consider, starting with the type of packaging being used. The types of packaging range from flexible, barrier and decorative to promotional, rigid or dispensing. Keep in mind that no matter the type of packaging, there is an appropriate security feature to apply.

One approach in a  multilayered solution is to utilize visible color-shifting inks with hidden machine-readable covert components within the ink blend (incorporate photo of our folding carton). The overt feature is a recognizable first line of defense, while the covert elements ensure evidence of authenticity. Even deeper, a molecular level marker can be added to create a forensic and court-defensible component. Most higher-security overt and covert inks are available in a wide variety of printing capabilities, including digital, offset, rotary and flexographic, and are hard to reproduce.  These solutions are applicable to most substrates and customization is available in a variety of colors and coating types.

Brand Protection with Good Design—All Stakeholders Benefit

Today’s brand owners have more security choices than ever before, and should realize there are effective ways to combine brand protection, great branding and regulatory needs into one design. With domain guidance and expertise, brand owners can leverage the right functional authentication feature combination that also satisfies key stakeholders within the organization. Some of the most common interests and outcomes sought by primary stakeholders are:

  • Brand Protection: Desire to protect a product (brand) against counterfeiters, diversion and illicit trade. The solutions that help detect, quantify and remediate through one or more enforceable actions create a positive return on investment for the company.
  • Packaging: Security solution that won’t slow down the production line or existing process. Be sure to consider the effects of implementation before selecting the solution, including graphic design, printing processes, manufacturing processes, and risk to production interruption or delays.
  • Marketing: Features that don’t take away from the aesthetics of the artwork or design. The marketing department has worked hard to come up with the preferred design, color schemes and budget considerations for packaging – therefore, it’s best to only make minimal changes when adding security features to the brand.

The challenge of incorporating effective brand protection with great branding has gotten easier with the flexibility of multilayered authentication solutions. These solutions won’t jeopardize the look of the packaging; in fact, they can add to the product appeal.

Download PDF Here

Beautifully Secure Packaging for Health & Beauty Products

     |     

Author: Andree Bourgeois

Brand protection solutions that allow design and security features to live in harmony.

For the brand manager, packaging designer or packaging engineer, there are many factors to consider when designing new artwork, graphics and security for product packaging. Incorporating higher security and brand protection features into product packaging is becoming more of a priority for many companies because of the  ongoing threat of counterfeiting.

However, it is challenging to mix effective brand protection, great branding and regulatory needs into one design. With different stakeholders involved, there are numerous factors affecting the perspective:

  • Ease of implementation into existing packaging and print lines
  • Regulatory compliance
  • Brand marketing preferences

Those same stakeholders can’t ignore that the resulting impact of consumer reaction can also be critical. How can brand owners navigate these challenges and satisfy multiple stakeholders, while enabling the necessary security features and maintaining the beautiful appearance desired? Today, implementing security or brand protection solutions is possible and the impact doesn’t have to be obtrusive to your packaging medium.

Why You Can’t Ignore the Need for Security

Counterfeit operations have evolved into large, well-funded, sophisticated organizations with their tentacles in multiple countries. They survive on easy access to technology and domain expertise to compete with legitimate and other counterfeit businesses.

Companies have learned (many the hard way) that not implementing product authentication solutions and monitoring for leakage adversely affects the bottom line and potentially the health and well-being of their loyal consumers. More specifically, brand owners have discovered that adding security features on packaging can greatly mitigate:

  • Lost revenue and declining market share
  • Patient or consumer safety and related liability
  • Recalls due to product adulteration and fraud
  • Long-term erosion of consumer confidence and brand value

Counterfeiting a branded product has become easier as the supply chain expands to a global model where product visibility decreases, resulting in more opportunities for illegal activities. For years, many consumers knew of counterfeiting in terms of fake designer handbags, clothing and jewelry. Now, more consumers are becoming aware of counterfeit beauty products such as makeup, hair products, sunscreen and more. Even ‘man’s best friend’ isn’t safe from counterfeit pet food, prescriptions and over-the-counter medicines. (Source: Fake goods are not fake news, Denver Business Journal, Oct. 2018)

Flexible Security Features in Today’s Market

Product security has shifted in the last 30-35 years. In the 1980’s, the first mass deployed authentication feature, in the form of secure holography, began to show up in the industry. Early adopters were major pharmaceutical, wine/spirits and consumer electronics firms. Today, brand protection is on the radar of any company with a significant investment in high-end branded products.

Different levels of security, varying ink technologies, and numerous covert and overt physical features can be applied to all types of packaging to challenge counterfeiters and help you stand out against your competition.

Brand protection begins with the understanding that it is a process and not a product. A product undergoes the product life cycle stages: introduction, growth, maturity and decline. Brand protection as a process is a series of actions, changes and functions all directed toward the pursuit of a return on investment (ROI).

The first step of any brand protection platform is a risk assessment strategy based on the three risk dimensions: product-specific, geographic and supply chain. This then leads to solutions that match the needs recognized by that assessment.

When thinking about a multilayered approach, there are several elements to consider, starting with the type of packaging being used. The types of packaging range from flexible, barrier and decorative to promotional, rigid or dispensing. Keep in mind that no matter the type of packaging, there is an appropriate security feature to apply.

One approach in a  multilayered solution is to utilize visible color-shifting inks with hidden machine-readable covert components within the ink blend (incorporate photo of our folding carton). The overt feature is a recognizable first line of defense, while the covert elements ensure evidence of authenticity. Even deeper, a molecular level marker can be added to create a forensic and court-defensible component. Most higher-security overt and covert inks are available in a wide variety of printing capabilities, including digital, offset, rotary and flexographic, and are hard to reproduce.  These solutions are applicable to most substrates and customization is available in a variety of colors and coating types.

Brand Protection with Good Design—All Stakeholders Benefit

Today’s brand owners have more security choices than ever before, and should realize there are effective ways to combine brand protection, great branding and regulatory needs into one design. With domain guidance and expertise, brand owners can leverage the right functional authentication feature combination that also satisfies key stakeholders within the organization. Some of the most common interests and outcomes sought by primary stakeholders are:

  • Brand Protection: Desire to protect a product (brand) against counterfeiters, diversion and illicit trade. The solutions that help detect, quantify and remediate through one or more enforceable actions create a positive return on investment for the company.
  • Packaging: Security solution that won’t slow down the production line or existing process. Be sure to consider the effects of implementation before selecting the solution, including graphic design, printing processes, manufacturing processes, and risk to production interruption or delays.
  • Marketing: Features that don’t take away from the aesthetics of the artwork or design. The marketing department has worked hard to come up with the preferred design, color schemes and budget considerations for packaging – therefore, it’s best to only make minimal changes when adding security features to the brand.

The challenge of incorporating effective brand protection with great branding has gotten easier with the flexibility of multilayered authentication solutions. These solutions won’t jeopardize the look of the packaging; in fact, they can add to the product appeal.

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