VeChain Tapped to Provide Transparency for China's Wine Trade

The VeChain-powered wine traceability platform now oversees more than 20 wines in Shanghai's Pilot Free Trade Zone, according to a company statement on Tuesday.

Launched in 2018, the Shanghai Wine and Liquor Blockchain Alliance has sought to improve the logistics and quality standards for the growing industry, as middle-class Chinese consumers develop a taste for the supple intoxicant.

In a 5 month stint, Chinese authorities reportedly seized nearly 65,000 counterfeit Penfolds bottles, worth upwards of $4 million.

As a means of combating the illicit Chinese wine trade, Shanghai Waigaoqiao Direct Imported Goods Co, a major importer in the region, partnered with VeChainThor to develop an authenticating system for luxury wines.

The latest wine registered is the Australian cabernet sauvignon Penfolds Bin 407, which retails at around $60 according to Vivino.

The wine traceability platform is overseen by two governmental bodies, and the information stored on the blockchain is independently verified by auditors like DNV GL. D.I.G. reports a 10 percent increase in sales for vintages tracked by the authenticating platform since launch.

The French supermarket chain Carrefour's reported a jump in sales after tracking the production of their Mousline potato puree with Nestle's blockchain technology.

When announced, the wine traceability system was expected to expand to over 500 retail stores within Shanghai.

Currently, three stores carry VeChainThor-enabled Penfolds Bin-407 bottles.

Several firms such as automobile manufacturers BMW and Renault, and global quality registrar DNV GL, use the management system to track products throughout their manufacturing lifecycle.