Combating Counterfeiting In The Beverage Industry With Effective Coding And Marking Solutions

To give you an idea of the scale of counterfeiting within the global beverage industry, earlier this year Interpol reported it had seized a staggering one million litres of illicit drinks across 57 countries as part of an operation Opson V.1Some 10,000 litres of fake or adulterated alcohol were seized in the UK, while 36,000 litres were seized in Burundi, highlighting the fact that counterfeiting is common in both developed and underdeveloped countries.

- Edward Martin

All areas of the beverage industry are affected by counterfeiting. Energy drinks such as ‘5-Hour Energy’ have been replicated, for example, with the company recently being awarded a $20m plus summary judgement against three defendants in total, while counterfeit soda syrup allegedly sold as Coca-Cola has seen law suits brought against a beverage distributor in Louisiana. Even water, our most basic necessity, is subject to counterfeiting, but it is alcohol that is most counterfeited and diverted due to higher costs (product plus stamp tax).

The Human Element 

Unlike counterfeit electronics, luxury accessories or apparel, counterfeit beverages have a high human cost as the product is consumed. Apart from lost revenue and brand damage to a company, counterfeit beverages have resulted in loss of human life and human’s being maimed. Counterfeit alcohol has been found to include some remarkably dangerous substances, including hazardous chemicals such as chloroform, anti-freeze and nail polish remover.

In the UK last year, shortly before New Year’s Eve, The Mirror reported that thousands of litres of counterfeit vodka had been seized from a factory in Wigan2. The fake spirit represented £1.7m in unpaid duty but, more seriously, if consumed could lead to blindness, coma or even death. The importance of preventing such products from entering the retail supply chain cannot be stressed highly enough.

The Issue of Diversion