Vintage and new wines have become the latest products to go on the blockchain thanks to a project between EY and company Blockchain Wine.
The blockchain wine platform will underpin the sale of wines directly from vineyards both to hotels, restaurants and cafes, and also to consumers directly.
Focusing both on wines for consumption and those purchased for investment purposes, the platform will use blockchain technology to ensure traceability – providing proof of the quality, provenance and authenticity of particular vintages.
It is known as the TATTOO Wine Platform, which stands for traceability, authenticity, transparency, trade, origin and opinion, and which is underpinned by EY’s OpsChain Solution, an enterprise blockchain technology.
It will see each bottle on the blockchain ‘tattooed’ with a unique QR code. When scanned, this will provide information on the vineyard, fertilisers used during the growing process and the transportation methods deployed for processing and delivery.
Blockchain wine platform to support direct access to producers
The platform not only provides smart contracts to ensure the provenance and quality of wines, but is also designed to widen access to high-quality producers.
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Blockchain Wine’s TATTOO Wine Platform will contain more than 5,000 different products, including wines from Europe, South America, Australasia, South Africa and the US.
It will also be supported by one of the largest wine cellars in Asia, The House of Roosevelt.
“By integrating blockchain to our platform, we will establish direct connections between wine producers, the distributors, and the companies involved in logistics, such as shipping and warehousing, with the possibility of payments to be managed electronically,” explained Tim Tse, chairman of Blockchain Wine and president of The House of Roosevelt.
“Blockchain has the potential to revolutionise the supply chain, which typically includes supplier payments, product traceability and contract bids and execution,” added Donato lacovone, EY mediterranean regional managing partner.
“The token feature of the blockchain EY teams developed for the TATTOO Wine Platform addresses these elements, and even helps distributors to exchange tokens for services like expedited shipping or special warehousing for their orders.”
Supporting wine consumption in Asia
The platform is also being positioned to help meet growing demand for wine in China, Japan, South Korea, Thailand, and Singapore, where European wine is in particular enjoying significant growth.
Here consumers are keen to get their hands on wine produced by small European vineyards, but currently can struggle to do so.
“As the market in China for European wine is expanding, there are many small and medium wine producers that want to reach this market, but there is no way for distributors – and their customers – to get information on product quality or authenticity,” explained Tse.
“Because we are now bringing in more imported wines, and quality is extremely important to us and our customers, we wanted a way to equip our distribution network in Asia and worldwide and, ultimately, their consumers, with the information they need to help ensure the source, authenticity and availability of the product they are buying.”