The Wine Traceability Platform Co-Developed by VeChain and D.I.G, Kickstarted its Second Phase with the Introduction of Penfolds Bin 407 For Enhanced Transparency and Reliability
Forty years of explosive economic growth has made China the second-largest economy in the world and helped create millions of middle-class households. With the improvement of living standards and the change of lifestyle, drinking wine has become increasingly popular among the better-off Chinese citizens. According to the Research Report on Wine Import in China, 2019–2023. China imported $3.91 billion worth of wine in 2018, up by 6.50 percent year on year. Also, analysis by VINEXPO indicates that China will become the world’s second-largest wine consumer by 2023, with a market value estimated to be worth $23 billion.
The booming market has caught the eyes of savvy wine producers and cunning copycats and counterfeiters. In November 2017, the Shanghai Police seized 14,000 bottles of counterfeit Penfolds, worth over 1 million USD. Five months later, police officers in Zhengzhou, He Nan Province busted another 50,000 fake bottles, worth over 2.8 million USD. Given the nature of wine fraud, these reported cases are only the tip of the iceberg.
Wineries and distributors have taken various measures to combat fraudulent sales, yet few have proved useful. To tackle the issue, D.I.G (Shanghai Waigaoqiao Direct Imported Goods Co., Ltd.), a major importer in China worked with VeChain, a world-leading enterprise-level public blockchain, and launched the Wine Traceability Platform (hereafter referred to as WTP) in June 2018.
Built on the VeChain ToolChain, a revolutionary one-stop BaaS platform designed by VeChain, WTP took advantage of the strengths of blockchain, IoT devices, and mobile devices to keep track of the lifecycle of wine from wineries to distributors. So far, more than 20 wine products imported by D.I.G have gone live on the platform, accounting for one-third of total wine products imported by the company. According to D.I.G, the WTP-powered wine products enjoyed an average of a 10% increase in sales after implementing the solution, resulting from enhanced consumer confidence.
In July 2019, Phase 2 of WTP kickstarted with the introduction of Penfolds Bin-407. This was the first time that Penfolds, one of Australia’s most famed and respected winemakers, had been empowered by blockchain for enhanced transparency and traceability. Founded in 1844, Penfolds is best known for its iconic Grand Wine. Over the years, Penfolds has won a number of accolades and awards. For example, the 1955 Grange was named one of the top 12 wines of the 20th Century by Wine Spectator, and the 2008 Grange picked up a perfect 100-point score from Wine Spectator and Robert Parker’s Wine Advocate.
In the case of Penfolds Bin-407, each bottle is attached with an encrypted NFC tag specially designed for wine products. By reading the NFC chip, customers can access the relevant wine bottle’s immutable product information stored on the blockchain, including provenance information verified by independent auditors such as DNV GL. With the VeChainThor Blockchain technology and the WTP platform, Penfolds and similar wineries can now make it less likely for their products to be counterfeited while allowing consumers to form more in-depth insight into the product, enhancing their confidence and trust.
VeChainThor Blockchain-powered Penfolds Bin-407 bottles are now available in three brick stores:
- Waigaoqiao International Alcohol Exhibition & Trading Center:
№77, Fute West 3rd Road, China (Shanghai) Pilot Free Trade Zone
- D.I.G Flagship Store:
№460, Fute North Road, China (Shanghai) Pilot Free Trade Zone
- Sen Lan Shang Du Store:
№2988, Zhangyang North Road, Pudong New District
Located in China (Shanghai) Pilot Free Trade Zone. D.I.G (Shanghai Waigaoqiao Direct Imported Goods Co., Ltd) is committed to becoming the largest distributor of imported goods in Shanghai, even China, and providing a range of services including the exhibition, trade, logistics, e-commerce and distribution of imported goods. D.I.G. adheres to the principle of “Innovation, Leadership, Integrity, and Win-win”, aiming to create the most efficient and trustworthy system for goods import. So far, D.I.G imports around 10,000 kinds of products, including food, alcohol, daily necessities, cosmetics, watches, and many others.