VeChain and D.I.G Bring Penfolds on Board for the Second Phase of Their Wine Traceability Platform Solution

In July 2019, VeChain and D.I.G.’s wine traceability platform (W.T.F.) started the second phase. The platform was designed to tackle the issue of fraudulent sales in the booming wine industry in China.

This second phase brings on board Penfolds, a famous and respected Australian winemaker, best known for its iconic Grand Wine.

The Problem of Counterfeits in a Growing Wine Industry

Thanks to the ever-growing economy in China, the wine industry has been on the rise, especially among the middle-class citizens. In 2018, China exported wine worth $3.91 billion. According to VINEXPO, the country will be the second-largest exporter of wine by 2023 with an expected market value of $23 billion.

Thanks to the growing industry, counterfeiters and copycats have been on the rise. There have been several reported cases of wine fraud. For example, in April 2018, Zhengzhou police seized 50,000 bottles of fake Penfolds bottles. Five months earlier, Shanghai police had gotten hold of 14,000 counterfeit Penfolds bottles whose worth amounted to over $1 million.

These fraudulent cases have led to the need for a solution. Although wineries have tried different solutions, none of them has been successful.

The Wine Traceability Solution (W.T.P.)

VeChain is a global leader in offering real-world, blockchain solutions, particularly in the supply chain industry. The partnership between the crypto platform and D.I.G. (Shanghai Waigaoqiao Direct Imported Goods Co., Ltd), a major Chinese importer, seemed like an ideal solution to the problem.

In June 2018, the two companies launched the W.T.P. The platform is built on VeChain ToolChain, which is a VeChain-designed BaaS platform. It incorporates the use of blockchain technology, IoT devices, and mobile devices to track wine from the wineries to the distributors.

Currently, the platform hosts over 20 wine products that D.I.G. imports. The importer has revealed that they have realized a 10% increase in sales after the implementation of the W.T.P.

Penfolds Jump On-Board

The second phase of W.T.P. comes with the addition of Penfolds Bin 407. For the Australian wine producer, W.T.P. is its first blockchain solution for traceability. Each bottle of Penfold 407 red wine is attached to a tag right at the mouth of the bottle. Consumers can then use a mobile app to scan the label and access the bottle’s information as is stored on the blockchain.

Thanks to W.T.P., Penfolds can now make it difficult for counterfeiters to target their products. At the same time, it helps to give customers insight into the products information. This enhances users’ confidence and trust, which is suitable for any business.