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News

NFC technology helps fight counterfeit wine trade

Inside Secure : 28 May, 2014  (New Product)
Wines and spirits are being protected with embedded chips read by a smartphone equipped with NFC technology to combat counterfeit trade
NFC technology helps fight counterfeit wine trade

INSIDE Secure and Selinko, an object identification company, announce the availability of CapSeal, a smart, patent-pending and secure system to fight counterfeiting in the wine and spirits market. This solution, an industry first, is aimed at solving the bottle refill problem, an increasing threat to the industry.
 
By using an NFC (Near Field Communication) smartphone or device to scan the chip embedded in the tag and the Selinko mobile application platform, any industry player or consumer can easily verify the authenticity of the bottle, confirming that it has not been previously opened. The chip confirms that the capsule on the bottle has not been tampered with and the cork has not been removed.
 
INSIDE Secure’s highly secured CapSeal solution is certified against the highest worldwide certification standard (Common Criteria certification, EAL5+ level used for Electronic Passport-certification) and smart packaging solution. Combined with Selinko’s innovative application platform, CapSeal is providing the wine and spirits industry with a unique and most secure solution to solve counterfeiting and refilling problems.
 
“There is a strong demand from our customers to adopt a system that prevents the fraudulent refilling of bottles of wine and spirits that can be easily implemented,” said Patrick Eischen, CEO at Selinko. “INSIDE Secure’s CapSeal combined with Selinko’s platform is a significant technological breakthrough to tackle those problems.”
 
The CapSeal patent-pending system is compliant with existing capsule bottles. This is important to allow brands and wine and spirits producers to solve the refill problem without replacing their standard corks and bottle caps.
 
According to market analysts, 20 per cent of wine sold worldwide is counterfeit. Statistics show that this figure reaches 50 per cent in some Asian countries, especially for high-end French wines. In the spirits market in some Asian countries, 25 per cent of European imports are counterfeit. The refilling of empty high-end bottles is now the gold standard for counterfeiters, especially in China. For example, on average an empty bottle of grand cru Lafite can reach USD 450 (EUR 330). China is the largest red wine market in the world.

“INSIDE Secure and Selinko have been working closely together for more than a year to develop this solution, which combines a strong authentication mechanism with a tag deactivation when the bottle is opened,” said Bernard Vian, EVP, Secure Transactions division at INSIDE Secure. “We are very pleased to have succeeded and to provide the wine and spirits industry with the most effective anti-counterfeiting solution.”
 
CapSeal is the result of a strong collaboration between INSIDE Secure and Selinko. It consists of an INSIDE Secure VaultIC 150X chip connected to an antenna that is inserted on the neck of the bottle, just above the cork. To prevent anyone from refilling a bottle, the tag is mechanically deactivated when removing the capsule bottle.

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