Current Market Environment

Wine sales are tied directly to the consumer's perception that they are purchasing a quality product. But, there is currently no method available on the market that will protect the consumer and the producer from counterfeit wine, determine legal production practices have been followed, and allow them to authenticate wine at the purchase site.

Wine consumption has grown significantly in the last two decades, with the United States being the leading consumer of wine in the world. It is also the second largest wine producer and importer after the European Union, which consists of 27 European countries. The world has seen a significant increase in production from new world countries, especially the United States, Australia and Chile, and wine imports have grown significantly with this globalization. The quality and authenticity of products have become critical concerns.

With the amount of wine being imported the need for verifying wine authenticity and understanding procedures used in wine making has become more important than ever. Understanding the origin of consumed wine in rapidly expanding global economy has become fundamental in order to control quality and protect consumers.

Based on dissertation paper written by Master of Wine Candidate 19/08 market for fine wine "conditions have created an environment where producers of fine wine should be considerably worried about the impact that counterfeiting may have on their business…. Producers appear to be very concerned about a potential impact on their brand reputation… Producers also feel that they are largely responsible for dealing with the issue…" Complete counterfeit analysis can be found here.

Most of uncovered counterfeit wine happens after it is too late. Understanding these practices in time is essential to protect consumers and wine producers. Based on market research done producers feel that they are left to fend for themselves in order to protect their revenues and reputation from counterfeit product.

In article published 27 April 2009 by Trace organization “it is estimated that 30% of the wine bottles sold in Europe are falsified. Some countries as China even recognize that 70% of the imported wines are falsified…”
Complete article can be found here.