Counterfeit refilling and untaxed product put both brand reputation and consumer health at risk.
Industry overview
Alcoholic drinks carry a heavy tax burden, which creates a strong economic incentive for counterfeiting and illicit production. In Türkiye, alcoholic drinks produced domestically and imported are marked with a banderole or a code under the product tracking system operated by the Ministry of Treasury and Finance. That system is aimed at tax security; a brand owner's need to protect the authenticity of its own packaging, its distributor and dealer network and its products in export markets goes beyond it.
The risk from counterfeit drinks is not only economic. The World Health Organization notes that outbreaks of methanol poisoning usually arise when illicitly produced drinks are adulterated with methanol. Collecting and refilling original bottles, copying labels and diverting products allocated to particular markets into other channels are also among the sector's main problems. Being able to show which line a bottle came off and which distributor and point of sale it reached the consumer through protects both brand reputation and consumer health.
Figures
Share of sales lost by the distilled spirits sector in the EU because of counterfeits
Source: EUIPO, The economic cost of IPR infringement in spirits and wine, 2016Share of sales lost to counterfeiting in the EU wine sector, according to the same study
Source: EUIPO, The economic cost of IPR infringement in spirits and wine, 2016Annual public revenue lost to counterfeit drinks in the EU, of which €739 million is excise duty
Source: EUIPO, The economic cost of IPR infringement in spirits and wine, 2016Risks
Every industry has its own risk profile; solutions are configured around those risks.
The use of methanol in illicitly produced drinks can cause severe poisoning and death. When an adulterated product is sold in the bottle and label of a well-known brand, the first impact of the incident falls on that brand's reputation.
Original bottles collected after consumption can be filled with counterfeit contents and put back on the market. Because the bottle, label and cap are genuine, the product may be impossible to tell apart by eye.
The labels, boxes and gift packaging of well-known brands can be copied at high quality. The statutory banderole is aimed at tax security; a brand also needs to be able to prove the authenticity of its own packaging.
Products allocated to a particular country, region or duty-free channel can go on sale in other markets. This disrupts the pricing structure and distributor agreements.
Our approach
Grafex, Tagvex and Authex can be used together or separately in any industry.
Smart packaging
An invisible signature is worked into the packaging; a copy cannot pass verification.
Grafex sitesi
The invisible signature is worked into the existing design of the bottle label, the box or the gift packaging and printed on your existing line; the label and banderole layout do not change. A dealer, a restaurant or supermarket employee and the consumer scan the product with the mobile app and confirm that the label is the brand's own print.
Secure labels
A unique number for every product; every step from production to customer is recorded.
Tagvex sitesi
Every bottle or case leaves the line with a unique number; deliveries to the warehouse, distributor, dealer and point of sale are recorded. A product allocated to one market being scanned in another channel makes channel diversion visible. With refilled bottles, a code scanned repeatedly or in unexpected places draws attention.
Digital monitoring
Brand risks in digital channels are detected, prioritised and turned into action with evidence.
Authex sitesi
Social media accounts, marketplace listings, digital advertising, domain names and app store records using the brand's name, logo or bottle images are monitored. Detections are documented with their date and content. Takedown requests are filed and followed to conclusion; whether removed content reappears is also monitored.
Example scenario
The bottle is labelled on the existing line with a label carrying the invisible signature; alongside the statutory banderole, a Tagvex number is assigned to every bottle and the line exit is recorded.
Cases are scanned on leaving the warehouse and on delivery to the regional distributor; which market and dealer the product is allocated to is recorded.
The restaurant or store manager scans the delivered bottles with the mobile app and confirms their authenticity and channel information.
The consumer scans the bottle they bought with their phone. If the same code has been scanned somewhere else before, it is flagged as a possible duplicate or refill.
Regulation
The main rules that apply in your industry, or will soon take effect.
Published in the Official Gazette on 11 September 2020, the communiqué governs the application of a non-counterfeitable banderole to alcoholic drinks and of a code or coded label in lieu of a banderole to beer products, and their activation by transferring the information to the data centre. The system is aimed at tax security and requires production and import records to be kept in order.
Requires producers of alcoholic drinks to report banderole information and stock information for banderoled or coded products in the annexes to the SCT return in each declaration period. These reports make it compulsory to keep production and stock movements on record.
This section is for information only; rely on official sources for current obligations.
FAQ
No. The banderole and code requirement is a legal obligation and continues unchanged. Spectrace helps the brand to prove the authenticity of its own packaging and its distribution records alongside that system.
No. The invisible signature is worked into the existing label and box design and printed on your existing line. The look of the bottle and the position of the banderole do not change.
The scan history of every bottle numbered at unit level is kept in the records. If the same code is scanned again, or in a different city, after sale, that points to the bottle possibly having been reused.
Tagvex records show which distributor and market every bottle or case was delivered to. When a product is scanned in another region, this appears in the records and can be traced back to the delivery point concerned.
Yes. Restaurant and supermarket staff, dealers, consumers and auditors can verify with the mobile app installed on a smartphone. No special reader device is needed.
Blog
How the grey market and channel diversion arise, why they harm brands, and how traceability data makes those movements visible.
8 min read
Collecting evidence, filing notices and following removals against counterfeit listings on marketplaces and social media, and dealing with repeat sellers.
7 min read
What batch numbers, unique serial numbers, GTIN, SSCC, GS1 DataMatrix and GS1 Digital Link each cover, and when each one is enough.
8 min readOther industries
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In the first meeting we review your product, sales channels and the risks you face, then recommend a verification method that fits.
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