Can Blockchain help

Chateau Lafite Fight

Counterfeit?
Submitted by:
Kawaljit Modi
Shreyansh Bisht
 •Wine counterfeiting is a significant global issue, with an
estimated value of $15 billion in 2017.
•Lafite, a renowned wine brand, faces challenges due to
counterfeit Lafite wines, particularly in China, where
over 50% of the Lafite sold may be fake.
Introduction •These counterfeit wines not only harm Lafite’s brand image
but also impact its revenues.
Current • Lafite has implemented authentication seals to combat
counterfeiting.
Measures • However, these measures have limitations:
and • Consumer awareness: Many consumers lack
knowledge on how to verify the authenticity of wine
Limitations bottles.
• Replicability: Anti-fraud features can be copied by
counterfeiters.
 • Blockchain technology offers promise in addressing wine
counterfeiting:
• Traceability: It can track the entire supply chain, from
vineyard to consumer.
Blockchain: • Authenticity: Each bottle could have a unique digital
identity on the blockchain, allowing consumers to
A Potential verify its origin.
Solution • Provides immutable, decentralized record of transactions
• QR codes link physical bottles to digital records
• RFID and barcode systems enable traceability but lack
the immutable, decentralized record provided by
blockchain.
 1. Private Blockchain (High Initial Investment)
1. Lafite could develop its own private blockchain.
Blockchain 2. Initial investment: Approximately $200,000.
2. Existing Blockchain Providers
Implementation 1. Using established providers like VeChain or Chai
Options Vault.
2. Integration with QR codes on bottles.
3. Potentially more feasible in terms of cost.
 1. Scalability issues - Blockchain platforms face limits on
transactions per second, resulting in slow processing times.
Solutions are in development but still a challenge.
2. Change management required - New processes needed
for assigning digital IDs, tracking shipments on blockchain,
and training staff. Significant change management efforts.
Challenges 3. Consumer adoption challenges - Many consumers don't
understand blockchain and may be hesitant to adopt. Need
simple consumer interfaces and education.
4. Costs and ROI - Upfront costs of developing and
integrating blockchain are high. Complex to determine
return on investment and quantify value.