Beverage Industry: Battling Wine Fraud with the Internet of Things

July 15, 2025

We are syndicating this article from Beverage Industry.

New IoT solutions help wine industry implement science-backed authentication

By Dr. Markus Ehrat, CEO at Genuine-Analytics AG , Dr. Maria Bikaki, Project Leader at Genuine-Analytics AG, Klaus Simonmeyer, Vice President at Identiv, David Geisser, CEO of ZATAP

How do you tackle a problem that’s millennia old ― and still getting worse?

For as long as people have enjoyed wine, fraudsters have diluted it, mixed it with inferior products and claimed it was something it wasn’t. And these days, with the help of technology, criminal organizations cannot only fake the wine itself, but also bottles, labels, corks and capsules that are otherwise the hallmark of respected wine brands.

But technology cuts both ways, and the wine industry has new tools up its sleeve to fight fraud. Because as the problem of wine counterfeiting becomes bigger, the industry needs better, faster, more accurate methods to stay ahead of counterfeiters.

It’s commonly estimated that 20% of wine in circulation is counterfeit, though some believe the figure is higher. Although this is a well-documented problem in the luxury sector where premium wines can be sold for thousands of dollars, it’s also easy to fake $100, $50 or $30 wines at scale and turn a tidy profit. Not only does counterfeiting cut into legitimate business, but it can do real damage to a winery’s, reseller’s, or auction house’s brand image.

The next evolution in wine authentication brings the product online, using the Internet of Things (IoT) to link each bottle to a secure digital identity. That identity, in some cases, even includes scientific verification of the contents, made possible through microscopic extraction, molecular profiling and AI-powered comparison against known reference samples.

Blending art and science

Historically, wine authentication has been more art than science. Experts trained in label design, capsule materials, glass bottle characteristics, and closure aging have long been called upon to verify luxury wines through meticulous visual examination. 

But today’s counterfeiters are sophisticated, global actors with access to mass production capabilities, authentic-looking packaging and forged documentation. Some even refill empty authentic bottles and resell them with convincing provenance. 

In a high-stakes, high-value market, visual inspection alone is no longer enough. That’s why the industry is turning to science ― specifically, chemical profiling ― to verify what’s inside the bottle. Once verified, the bottle can be digitized utilizing an embedded IoT tag, enabling authentication and traceability across the product’s lifecycle.

But turning a glass bottle into a smart, data-sharing product poses unique technical challenges, and solving them is what makes the next layer of this system possible.

Bridging glass and data: The role of IoT

Wine can be challenging to digitize for several reasons. It’s liquid (which can confuse wireless transmissions), comes in glass bottles, which can be hard to tag, and is perishable, which means additional data, like temperature or humidity, also would be important.

As such, the connection between the physical and digital worlds comes in the form of a specialized IoT inlay, a compact, secure device embedded with a microprocessor, memory, radio antenna and, in some cases, tamper-evident sensors.

Companies like Identiv that specialize in radio frequency identification (RFID) and near-field communication (NFC) ― two wireless standards compatible with everyday readers ― enable producers, resellers and certifiers to tag bottles in a way that maintains both form and function. 

These discreet, secure tags embed a layer of intelligence directly into the product, allowing bottles to communicate wirelessly with smartphones or readers. The result is real-time access to data on authenticity, handling conditions, environmental exposure, and more.

When paired with scientific testing from companies like Genuine-Analytics and secure digital infrastructure from platforms like ZATAP, this ecosystem becomes the backbone of a more transparent wine market: one where authenticity can be verified instantly, provenance can be authenticated end-to-end, and trust isn’t just a matter of opinion, but of proof.

The future of wine authentication

Although early applications have focused on six-figure wines and high-end auctions, fraud is no longer confined to rare, ultra-luxury bottles. In fact, in 2024, a criminal operation in Switzerland was caught counterfeiting bottles of wine priced under five Swiss francs (less than $6).

For producers of mid-tier or organic wines, authentication can become a way to defend brand integrity, especially when third-party certifications (like “bio” or regional AOC status) are involved. For importers and retailers, it’s a method to prove handling and storage conditions throughout distribution. For consumers, it’s a gateway to transparency.

Perhaps most importantly, just as QR codes and traceability have reshaped food, coffee, and cosmetics, wine is poised to offer a deeper, more interactive relationship with buyers ― one built on verified trust. 

By combining the rigor of lab-tested verification with the precision of digital authentication, wine producers, auction houses and resellers can ensure that what’s inside the bottle lives up to what’s on the label ― every time.

Wine fraud might be as old as the drink itself, but the tools to stop it have never been more modern, and the industry has never been better positioned to use them.