COVID-19 Policy Statement
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Knowledge Center

Case Study: Wine & 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.

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COVID-19 Policy Statement


v1.03.17.2020

At Authentix, our mission to safeguard the integrity of global commerce is our priority as we continue to focus on customer needs with the challenges presented by the COVID-19 health emergency. Our corporate leadership team is monitoring the situation closely and its potential impact on supply chain continuity.

Our first and foremost commitment is to the health and safety of all Authentix employees. As we have said when faced with other similar infectious disease situations, we will never force Authentix employees to travel to geographic areas where they are uncomfortable or that present an increased risk of exposure to infectious disease.

Effective through April 30, 2020, we have closed the Addison Texas Facility to all personnel who do not require facility equipment to conduct their job, allowing for only those functions such as production/shipping/testing as needed to continue to serve our customers. We have banned all visitors to the Addison Texas Facility as well. We encourage all Authentix sites to enact a similar ban for employee safety and to restrict visitors, but realize this restriction is subject to local needs. We have further banned all air/train travel for all employees for Authentix business purposes. We ask that all customers, vendors or suppliers support these efforts and for those who present themselves at Authentix locations to respect and adhere to our policies and procedures that may limit access on this temporary basis.

We will continue to communicate regularly with our suppliers and updating contingency plans to ensure against any adverse impact or disruption to our customers, acknowledging that we are however subject to continued government restrictions and limited availability of transportation that may continue during this time. We encourage you to reach out to your Authentix point of contact with any questions or concerns.

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