CRACKING THE COUNTERFEIT CODE

THERE’S AN AWFUL lot of fake wine out there. For years the wine and drinks industry has been under attack from fraudsters selling fake packaging and counterfeit alcohol – and thanks to new technology, the problem is only going to worsen. NetNames, which specializes in online brand protection, is highlighting the huge impact that fake products are having on the health of the trade – and consumers. Research from the company suggests that retailers are losing between $3OO million and $4OO million annually to copycats and counterfeiters, with wine counterfeit experts estimating that there is $1OO million of counterfeit wine currently in circulation. Alcoholic drinks in particular are being regularly targeted by counterfeiters due to their premium price tag and because they are difficult to identify without tasting the product.

In January, Italian authorities seized 9OOO bottles of fake Moët & Chandon Champagne, along with 4O,OOO well-crafted imitation labels. “Counterfeit wine not only poses a huge threat to consumers’ health, it also significantly impacts a brand’s image,” said Stuart Fuller, Director of Commercial Operations and Communications at NetNames. “Our research found that 78% of consumers would shun a brand if they found themselves on a fraudulent website pertaining to be the brand’s genuine site, despite the company itself not being negligent. The risk of reputational damage has been amplified by the growing role of social media in influencing consumers’ shopping behaviors.” Advances in technology means the problem is growing. As such, Fuller is urging businesses to consider how they can safeguard themselves against fraudsters and recommends that companies appoint a dedicated brand protection manager. Retailers should also be taking control over their domain names to respond to cyber-squatters, typo-squatters and rogue e-tailers rapidly and, where necessary, bring in outside experts with the experience and advanced technologies to monitor for threats. He also suggests that wine producers educate their customers so that they can identify and avoid fakes adding, “Some companies have even set up dedicated web pages to help consumers determine whether a product they have bought is a fake.”