The VeChain-powered wine traceability platform presently manages over 20 wines in Shanghai’s Pilot Free Trade Zone, according to a company statement on August 6.
Introduced last year, the Shanghai Wine and Liquor Blockchain Alliance has aimed to progress the coordinations and quality guidelines for the developing industry, as middle-class Chinese buyers develop a taste for the supple intoxicant. However, as consumption increases, so does counterfeiting. In 5 months, Chinese officials allegedly seized about 65,000 fake Penfolds bottles, worth upwards of $4 million.
As a means of fighting the illegal Chinese wine trade, Shanghai Waigaoqiao Direct Imported Goods Co (D.I.G.), a major importer within the locale, joined forces with the public blockchain venture VeChainThor to create an authenticating framework for luxury wines. The most recent wine enlisted is the Australian cabernet sauvignon Penfolds Bin 407, which retails at around $60 according to Vivino.
The blockchain-strapped bottles are prepared with a near-field communication (NFC) chip to track the vintage’s provenance. Furthermore, the wine traceability platform is supervised by two administrative bodies, and the data stored on the blockchain is independently confirmed by reviewers like DNV GL.
D.I.G. declared a 10 per cent increase in sales for vintages tracked by the authenticating platform since it began.
This is similar to sales of other blockchain-powered food tracking system. The French grocery store Carrefour published a bounce in sales after tracking the production of their Mousline potato puree with Nestle’s blockchain technology.
When revealed, the wine traceability framework was anticipated to extend to over 500 retail stores within Shanghai. As of now, three stores carry VeChainThor-enabled Penfolds Bin-407 bottles.
The enterprise-focused VeChain ecosystem intends to enhance supply chain management. A few companies, such as car producers BMW and Renault, and worldwide quality registrar DNV GL, utilize the management framework to track products all through their manufacturing lifecycle.