VeChain Moves Into China’s $3.9 Billion Wine Imports Industry
Penfolds, one of Australia’s oldest and most iconic wineries, is now the first of its kind on VeChain’s Wine Traceability Platform. Launched last year in collaboration with D.I.G, Shanghai Waigaoqiao Direct Imported Goods Co., Ltd., a major importer in China, the platform is designed to stem the flow of counterfeit goods, authenticating the origin of each bottle.
Local reports show that counterfeit Penfolds accounted for over $1 million in sales in 2017 in Shanghai and over $2.8 million in fake bottles in Zhengzhou.
VeChain’s platform tracks the entire lifecycle of the wine from wineries to distributors by using blockchain encrypted NFC tags that will allow Penfolds’ customers to discover detailed information about their purchases. According to the announcement, Penfolds Bin-407 bottles are now available at three locations, tagged and powered by VeChainThor which connects blockchain technology with real-world infrastructure such as IoT.
- 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
D.I.G points to a 10% increase in sales after platform integration as an indication of how VeChain’s solution instills a greater sense of trust for customers.
“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.”
A research report published by ResearchAndMarkets on wine imports in China from 2019–2023 shows that China’s current market value for imported wine stood at roughly $3.91 billion in 2018, up 6.5% from 2017.
The Chinese wine market is expected to become the world’s second-largest by 2023, with a market value of roughly $23 billion, according to an analysis by VINEXPO.