Authenticity, AI & blockchain

Fraud is a longstanding problem in the fine wine market. Could AI and blockchain technology provide the answer?

- STORY ELAINE MAGUIRE O'CONNOR

In the world of luxury goods, there has traditionally been one golden rule for avoiding counterfeits: purchase from a reputable seller. But recent raids in Europe have put a question mark over just how reliable that advice is when it comes to the world of fine wine.

In October last year, police from France, Italy and Switzerland dismantled a criminal network that was, according to the report from anti-organised crime body Europol at the time, selling a significant number of faked bottles purporting to be French grand cru estate-level wines for up to €15,000 each. The bottles were so convincing that they were reportedly being sold, unwittingly, by ‘honest wine traders’ across the globe. It’s no longer just a case of rogue bad actors – the problem runs deep within the industry.

Counterfeit wine is by no means a new phenomenon. As far back as ancient Rome, fraudsters counterfeited trademarks on amphorae, passing off cheap local plonk as premium Roman wine. However, the last 20 years or so have seen a steep escalation in the prevalence of wine fraud as technological advances have enabled counterfeiters to push their products into legitimate supply chains undetected.

Now, a number of companies are promising solutions that make use of blockchain (see box, p70) and artificial intelligence to guarantee the authenticity of wine and identify and remove counterfeit products from the market. But with so much hype around these shiny new technologies, it can be difficult to differentiate between genuine solutions and false dawns.

Blockchain solutions