The growth of counterfeiting in the liquor industry

The entire nation was jolted by the ill-fated deaths of people due to counterfeit alcohol in the first half of this year. Not just precious lives were lost but families were left devastated in the states of UP, Uttarakhand, and Assam. The onus of the tragedy fell upon the respective State Governments and a debate ushered in the by lanes of media and forums on the present regulatory and anti-counterfeiting measures against fake and illicit alcohol in the country.

According to a study published in the journal Lancet, India’s alcohol consumption has increased by 38% in the last seven years-that’s 4.3 to 5.9 litres per adult per year. Another study states that India is the biggest consumer of whisky in the world. However, the rising demand for alcohol has led to the growth of spurious alcohol industry.

There have been frequent reports of seizures of counterfeit and bootleg alcohol from different states of India. According to a report by FICCI, “The grey market loss to the alcoholic beverage industry stood at INR 14,140 crore in 2014 which had increased from INR 5,626 crore in 2012 observing an increase of over 150 per cent.”

There are various reasons for the growth of counterfeiting in the alcohol industry. Lack of awareness regarding the effects of counterfeit alcohol is one big reason. The poor consumer is lured by the cheap prices of counterfeit alcohol and thus ends up buying counterfeit alcohol which may contain toxic adulterants. These adulterants lead to serious repercussions like kidney failure, liver failure, blindness, and even death.

The government must address the problem of counterfeit alcohol seriously as it hampers the growth of manufacturers, leads to a loss of Government exchequer and jeopardizes the health of the consumers. The combination of digital and holographic solutions can prevent the growth of counterfeit alcohol to a large extent. The U.P state government is currently using bar codes which have not been completely successful in clamping down on counterfeits, therefore, authentication solution providers association (ASPA) has suggested governments to incorporate holographic products along with bar codes/QR codes on liquor bottles to battle the menace of duplication in the liquor industry.

Do let us know if your brand or product is facing duplication. We offer tailormade anti-counterfeiting products and solutions. Call us on +91–785-785-7000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com

What are the multiple benefits of tax stamps?

Are you aware of the dangers of fake cigarettes and illicit alcohol? Well, you may be lured by their cheap prices, but they may lead to numerous medical complications and even death. Moreover, they also hamper government revenue and tarnish the image of the manufacturers.

Governments across the world use tax stamps as a physical indicator to determine if the tax has been paid on the product or not? A bottle of alcohol or a cigarette pack usually has tax stamps affixed to them. In addition, tax stamps also serve the purpose of authentication and determine if a product is genuine or fake. Tax stamps also leverage the aesthetic appeal of the product and make it highly saleable.

Market research suggests that tax stamps currently share a significant proportion in the security print market. Billions of tax stamps are printed annually for cigarettes and alcohol alone which makes them number one in terms of volume. In India, tax stamps are generally used in the tobacco and liquor industries where they are affixed on cigarette packs, cartons, and liquor bottles.

Tax stamps have been put to multiple uses – although unintentionally. Besides, being attached to the product for taxation, tax stamps are an evident proof that a product is authentic. It also serves the purpose of an anti-tampering seal, as it is placed over the opening of tobacco products or alcohol bottles. Moreover, tax stamps are printed with serialized code which is used for supply chain track and trace and production monitoring.

Since liquor and tobacco products are highly susceptible to counterfeiting, therefore, it is essential that tax stamps with high-security features should be used to avoid the sale of fake products and restrict any further losses.

Holostik offers tax stamps that incorporate different types of anti-counterfeiting technologies that encompass digital product authentication (QR codes & barcodes), holographic and non-holographic features. The company offers customized tax stamps as per the need of the consumer which helps in increasing tax revenues, curbing duplication, reducing the sale of hooch and deaths due to it and easy identification of genuine products. Some of the high-security features which Holostik offers in its tax stamps are as follows: human-readable variable data, machine-readable encrypted code, microprint, copy void feature, thermochromic inks, colour changing image, UV (ultra-violet) feature, user-defined screen, UV papers, security cuts, raster image, etc.

Used prominently on substrates like cardboard, paper, PVC, glass, plastic, and metal Holostik offers multiple variants of the tax stamps- as per client’s requirement. It includes holographic tax stamps, holographic tax stamps with taggant/talking pen, paper tax stamps and paper tax stamps with a holographic transfer.

To get the best and customised anti-duplication products and solutions call us on +91–785-785-7000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com.