The International Market for Brand Protection Solutionsn for Drink & Food Products

Publication Date	December 2008
Publisher	VandaGraf
Product Type	Report
Pages	100
ISBN Number	not applicable
Product Code	VIL00005

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Summary

Drink & Food Products - Value of Market for Brand Protection Solutions

Though grouped together in this report, Drink & Food products generally have little in common in terms of product related crime.

Alcoholic Drink products are often counterfeited and are also subjected to various forms of refilling and / or dilution extensively. Alcoholic Drink Products are also widely targeted by smugglers (like cigarettes particularly for countries with high excise duty).

Food products are most vulnerable to tampering of various sorts, together with a few cases of counterfeiting usually in connection with high margin regional products.

Drink Products

Liquor / Spirits and wines have relatively high unit prices within the Drink sector and generally strong margins. These product categories continue to be the primary focus of product related crime in the Drink Sector. Product differentiation is a key marketing tool in the Drink business - Competing on price generally leads to a downward spiral, where nobody makes a good margin.

Most liquor / spirits brands depend upon product packaging as a barrier to counterfeiters incorporating difficult to replicate anti-counterfeiting features. All liquor / spirits bottles also utilise complex cap closures / seals to deter re-filling. These cap closures / seals often also carry authentication devices.

Liquor / spirits are also a high theft product category and EAS (electronic article surveillance) tags / labels are widely used. Such EAS devices may be re-useable removable tags or permanently attached single trip designs.

A quarter of all spirits brands claiming to be of European origin now sold in China are counterfeit, according to an EU liquor association - This poses a serious threat to public health as well as the industry's profits. China is becoming an increasingly important market for spirits exports, with further potential for growth, though there had been few significant improvements in crackdowns by authorities. The problem of fake brands is not unique to China and the Far East. There were also growing concerns regarding counterfeit alcoholic Drinks in many Eastern European nations.

Most counterfeit liquors are produced and largely consumed in Russia and China. Reports have indicated that as much as 50% of branded Vodka consumed in Russia is counterfeit and it is understood that tens of thousands of Russians may be dying each year as a direct result of consuming such counterfeit liquors / spirits.

In addition to liquors and spirits, fine wines in particular are vulnerable to counterfeiting. Such fine wines can command very high prices, running in to hundreds or even thousands of Euros.

Several systems now exist for protecting vintage wines from counterfeit attacks. RFID is already used in conjunction with security ink marking and other security features at bottle level. RFID can also provide an indication of the temperature levels experienced by the wine throughout its life in storage and as it moves through the supply chain.

Since 2005, all wine bottles that travel outside France must be traceable. Some winemakers tackle the problem by using hi-tech labels and engravings on the bottle.

Add to the mix, the high levels of Excise duties that are levied on alcoholic drinks by many countries and the high level of smuggling activity that goes on is not surprising.

Food Products

Within the huge global food market, it is generally packaged processed food products and meats that tend to be branded and hence such products are more often potential victims to counterfeiting. Although overall growth of food consumption is relatively slow, a growing proportion of this total figure is processed and packaged in today's World.

Counterfeit versions of premium price regional luxury product delicacies such as caviar, smoked hams (eg: World famous Palma Ham) and honey have been publicised. Many other types of Food products are essentially low margin commodity products.

Other regional brands of Foods with global reputation include a wide range of cheeses, most particularly European brands, some of which are very well known (eg: Camembert cheese from France). Such strongly branded high margin products can be attractive to counterfeiters. In terms of the overall Food industry the level of counterfeiting is small as really only affects specialised sectors, as outlined above.

Tampering in its various forms is generally a more significant and concerning problem in the Food sector today, including grazing (ie: Sampling of products in the retail store without purchasing), tampering for the purpose of obtaining fraudulent cash refunds, pilfering (ie: Removal of some product from its packaging - somewhere along the supply chain or at retail), malicious criminal tampering (poisoning or spiking of products, often accompanied by extortion demands).

The market for traditional brand protection products in the Food sector is relatively small compared to the market for such products for the Drink sector. Tamper evident features and devices are, on the other hand, very widely used in the Food sector.

Specific to the Food sector, there is also a major demand for products and devices that assure 'quality and freshness' of products. Such 'quality and freshness' devices may be viewed as being a component of the market for brand protection solutions and are used widely for limited life fresh, chilled & frozen foods including fruit and vegetables, meats, cheeses and other products.

Brands and also retailers can suffer damage to reputation from selling sub-standard quality food products. There is also a significant danger to consumer health.

Some important developments in the area of 'quality and freshness' are anticipated with the growth in usage of time / temperature devices and the decline of traditional 'use by date' labels.

Content

Introduction
1. Summary Overview - Drink & Food Products
- Table Security risks - Product related through the supply chain in Drink & Food Products
- Table Countermeasures - Appropriate to product related crime in Drink & Food Products
2. Drink Products
- 2.1 Market Overview - Industry structure & leading companies - Drink Products
- 2.2 Product Related Crime - Drink Products
  - 2.2.1 Case Study - High rates of Excise Duty on Alcoholic Drinks naturally attract smuggling and counterfeiting
  - 2.2.2 Case Study - UK Food Standards Agency Issues Warning on Counterfeit Vodka in 2005
  - 2.2.3 Case Study - Fraud Database Leads to Vodka Raid in the United Kingdom in 2008
  - 2.2.4 Case Study - Counterfeit Product / Packaging - Johnnie Walker Whisky
  - 2.2.5 Counterfeiting and Product Quality if the Wine Industry
- 2.3 Brand Protection - Drink Products
  - 2.3.1 Tamper Evident Packaging - Shrink sleeves in the Liquors / Spirits market
  - 2.3.2 Tamper evident and non-refillable closures for Liquors / Spirits
  - 2.3.3 Brand Protection of Premium Wine and Fortified Wine
  - 2.3.4 Case History - A new high tech anti-counterfeiting technology from Kodak Helps Napa Valley Wineries Fight Wine Fraud
  - 2.3.5 Case Study - eProvenance RFID enabled Brand Protection Technology for Fine Wine
  - 2.3.6 Case Study - InkSure and eProvenance have formed a Technology Alliance to protect the Fine Wine Market
  - 2.3.7 Case Study - Smartcorq - RFID enabled wine cork provides information about a wine's background (Time / Temperature profile)
  - 2.3.8 Case Study - A Hotel in Mexico adopts RFID to prevent Wine Theft
  - 2.3.9 Rioja Wine Label with Generic Hologram
  - 2.3.10 Molecular Micro-taggants - Drink Products
2. 4 Opportunities for Brand Protection Solutions Providers - Drink Products
3. Food Products
- 3.1 Market Overview - Industry structure & leading companies - Food Products
- 3.2 Product Related Crime and Product Related Quality Issues - Food Products
  - 3.2.1 Case Study - Counterfeiting locally branded honey - Micro-taggants that occur naturally can ensure authenticity
  - 3.2.2 Case Study - Food Alert - Product recall following detection of potential carcinogen in Honey in Scotland in 2005
  - 3.2.3 Case Study - Artificial colouration of edible olives with non-edible shoe polish in Egypt
  - 3.2.4 Product Tampering in the Food Products Sector - Types of Tampering
  - 3.2.5 Case Study - Melamine traces found in Fake Protein Powder in Milk Products for Children in China - Arrests have been made in 2008
- 3.3 Brand Protection - Food Products
  - 3.3.1 Case Study - Norwegian Food Group Nortura to Track Meat
  - 3.3.2 Case Study - Leading Mexican tomato and pepper supplier Del Campo to deploy brand protection technology HarvestMark from YottaMark
  - 3.3.3 Case Study - Nestle Deutschland - RFID Labels for Food Products
  - 3.3.4 Case Study - Marks & Spencer Creates RFID Supply Chain for Refrigerated Foods - Worldwide Fruit Limited
  - 3.3.5 Tamper Evident Packaging in the Food Sector
  - 3.3.6 Nano-Technology - A Big Future for Brand Protection for Food Products
  - 3.3.7 Food Quality and Freshness - An Essential Aspect of Brand Protection in the Food Sector
  - 3.3.8 Smart / Intelligent Labels
  - 3.3.9 Freshness Labels and the Like - For Food Products
  - 3.3.10 Time-Temperature (TTI) Devices used in the Food Sector
  - 3.3.11 Case Study - French Retail Chain Monoprix - Time/Temperature and Freshness Indicator Labels
  - 3.3.12 Case Study - 3M MonitorMark Time/Temperature Indicator (TTI) Tag
  - 3.3.13 Schreiner e-temp-label - Time/Temperature Indicator (TTI) RFID Label
  - 3.3.14 Case Study - Biott Time/Temperature Indicator (TTI) Labels - Brand Protection Applications in the Food Sector
  - 3.3.15 Case Study - The Timestrip Family of Time/Temperature Indicators and the Like
  - 3.3.16 Forecast Evolution of Date Code Technologies - For Food Products
  - 3.3.17 Management of Cold Chain Issues in the Food Sector
  - 3.3.18 Profile of a Tesco Cold Chain DC project
  - 3.3.19 RFID Labels in Supermarkets / Hypermarkets
  - 3.3.20 Brand Protection and RFID in Retailing
  - 3.3.21 RFID enabled Intelligent Freezer - Metro Group
- 3.4 Opportunities for Brand Protection Solutions Providers - Food Products
4. Security features (and systems) used in labelling and packaging applications for Drink & Food Products
- 4.1 How authentication technologies can assist in the fight against product piracy
- 4.2 Introducing a simple method of validation for customs inspection
- 4.3 Developing an inspection tool or security feature that assists in identifying suspected spurious Drink & Food products
- 4.4 Providing assurance to end users
- 4.5 Case Study - Counterfeit vodka laced with toxic household agents created a deadly cocktail that killed dozens of Russians in 2006
- 4.6 Is it possible to develop a single, global anti-counterfeit device that will be recognised and used in all applications?
- 4.7 Applying the right strategy and tactics to anti-counterfeiting and anti-tampering initiatives
- 4.8 Developing a layered approach to product protection
- 4.9 Levels of Defense in Brand Protection
- 4.10 Case Study - Cost effective security packaging for Tea comprising a combination of multiple functions integrated into a single label
- 4.11 The importance of being able to prove provenance
- 4.12 How install a resilient and adaptable system
- 4.13 How to protect against theft in the supply chain and on the retail shelf
- 4.14 How to protect against tampering, grazing and extortion risk
- 4.15 Marking packaging so that products can carry their own self-validating features
- 4.16 Adapting paper labels
- 4.17 Using swing tickets and tags
- 4.18 Adapting primary packaging and adding tear tapes
- 4.19 Forensic (invisible) marking methods and compounds for products and components
- 4.20 Case Study - Genotyping and DNA Marking to combat Wine Counterfeiting
- 4.21 Direct Visible Marking Methods for Food Packaging
- 4.22 Security Labelling (Base) Materials
- 4.23 Security Packaging (and Cap Sealing) Materials
- 4.24 Security Tags and Swing Tickets
- 4.25 Security Materials for use in the Drink & Food Sector
- 4.26 Adding Security to Glass Containers
- 4.27 Brand Protection Features
  - 4.27.1 Special Inks
  - 4.27.2 Embossing, Holograms and Foils
  - 4.27.3 Films and Overlays (including Polarisers)
  - 4.27.4 Chipless Tags
  - 4.27.5 Radio Frequency (RFID) Devices
- 4.28 Ink jet Marking
- 4.29 Transfer Ribbon Marking
- 4.30 Laser Encoding - On-product and Ink Activated
- 4.31 Linking Serial Marking to Authentication Databases
- 4.32 Using the Internet and SMS Messaging to Provide Provenance Advice
- 4.33 Product Marking with Encrypted (2d) Bar Codes
- 4.34 Surface Feature Identification
- 4.35 Protecting Brands on the Worldwide Web
- 4.36 Cost and Relative Security Performance Measurement
- 4.37 Summary - Security Features
- 4.4 Opportunities for Manufacturers of Brand Protection Solutions - Drink & Food Products
Appendices
- Appendix I Brand Protection Solutions - A new series of 10 targeted end user sector specific market reports from Vandagraf International -
- Appendix II Major multi-client report: ""The International Markets for Brand Protection Solutions - 2nd Edition (Publication date: January 2008) - A techno-economic market review
About Vandagraf International Limited
Author Profiles
Acknowledgements