Issue link: http://read.dmtmag.com/i/72545
MANAGEMENT Can you find the anti-fraud technology embedded in this wine label? Smart Labels By Deborah Parker Wong Wine labels work overtime on brand protection counterfeiting measures – many of which succeed on several accounts, but lose points when it comes to implementation and aesthetics. In the United States, we're now seeing the migration of mature, covert brand protection technologies from the pharmaceutical and currency industries to the wine industry. The use by U.S. wineries of authentication technol- s the prestige sector of the wine industry scram- bles to exercise more control over the wine fraud that's running rampant in Asia's emerging markets, the remaining 99% of the industry is pondering security measures and looking for clues as to the role digital communication will play in the future of brand marketing. For wineries whose products are destined for evolv- ing and often unregulated overseas markets, the belief that price-point alone will provide protection from the unwanted attention of counterfeiters may be short- lived. In Shenzhen, China, authorities predict that the country will continue to struggle with fraud until con- sumers are able to identify obvious defects in wine. While gatekeepers and educators will continue to develop their ability, and reports of illness will raise public awareness, the foreseeable future represents a steep learning curve for Chinese consumers and an uphill battle for producers. As the market for luxury wine (above $15) in Asia grows, the reputation of wines from any protected origin will continue to be at risk. French technology companies have been quick to respond to the attack on their industry's most presti- gious brands by developing a host of innovative anti- 96 VINEYARD & WINERY MANAGEMENT JULY - AUG 2012 ogies designed to go undetected or unnoticed by the human eye is still at an early stage of adoption, but their appeal is readily apparent. Because the aesthetics of labels and packaging play a paramount role in consumer acceptance and the success of any wine brand, market- ers are unwilling to adopt measures that compromise the aesthetics of their brand. Pete Perry, vice president at Dana Winery in Rutherford, Calif., provided a case in point. "We con- sidered using authentication technology, but our wrap- around labels were coming up on the edges when AT A GLANCE As the market for luxury wine grows, the reputation of wines from any protected origin will continue to be at risk. Brand protection technologies used by the pharmaceutical and currency industries are proving ideal for wine labels. Adding a covert security ink to your label will cost less than a few pennies per label. Producers can speed implementation and defray costs by sharing a security provider. WWW.VWM-ONLINE.COM