CHINA BUSTS $14.4 MILLION WORTH OF FAKE WINES

Counterfeit wine problems continue to abound in China . . . to the tune of $14.4 million worth of fake wine recently discovered in a bust. Police in China recently arrested 11 people and seized more than 5O,OOO bottles of fake wine bottled as Australia’s Penfolds and China’s Changyu in a crackdown in central Hebei province near Beijing. The raids were carried out by police acting on a tip-off from an authorized distributor for Penfolds, the flagship brand from Australia’s wine giant Treasury Wine Estates. According to the police, the fake wines are produced in Shangqiu, a city in Heibei, and sold to 17 different provinces across China including Henan, Fujian, Guangzhou, Shandong, Guangxi and Hubei via WeChat, the country’s most popular messaging and social media app. The raids uncovered over RMB 7 million (US$1 million) worth of fake Penfolds and fake Changyu wines worth more than RMB 6 million (US$865,OOO). Other branded counterfeit wines were also found in the raids but not specified. The total value of wines involved in this case is reported to exceed RMB 1OO million (US$14.4 million) based on a preliminary assessment. Penfolds is among China’s most well-known imported wine brands, making it one of the most faked wines within China. Changyu, being China’s oldest winery, leads China’s domestic wine sales. The investigation is still ongoing.