Counterfeiting is a major problem faced by companies and brands world over. Revenue and profit losses caused by counterfeiting ranks highest among all reasons. While various methods are available to stem counterfeiting, none have been really able to stem counterfeiting…. Read More
Food and Beverages
Fast Moving Consumer Goods (FMCG) remains one of the worst hit sectors due to counterfeit, fraudulent and spurious products. From personal hygiene products to food and beverages, counterfeiting has multiple negative effects for all stakeholders. It costs the exchequer loss in revenue, the manufacturer damage to the brand image and the consumer loss in quality, trust and well being.
Why counterfeit thrives in the Food & Beverage Sector?
- Easy access: Advanced technology and easy procurement make a thriving ground for backyard factories copying original brands and products.
- Packaging issues in FMCG: Traditional packaging options can be easily used by counterfeiters to repackage and refill with counterfeit products. This is especially true for packaged beverages. Counterfeit manufacturers can procure the original bottles from the recycle market and refill them with substandard beverages. Bottle caps are the easiest to imitate. Returnable glass bottles once were the catalyst for the counterfeit market in beverages.
- Leniency and leeway: Little check of authorities, poor regulations, lack of stringent actions embolden the grey market of counterfeit.
- Accurate duplications: Fake labels and packaging make it nearly impossible for consumers to identify and report a fake product. It is estimated that nearly one out of every five packaged food products a consumer buys may be counterfeit, posing grave threat to safety and health.
- Lack of awareness and authentication mechanism: Lack of awareness and tamper-proof mechanism to authenticate the originality of the products has further emboldened and fuelled the menace. Consumers do not have an easy option to trace back a product to the seller.
- Toying with the unsuspecting consumer: FMCG products are typically sold in busy hotspots, like weekly bazaars, outside railway stations, bus stands, etc, where consumers buy in a hurry and do not have the time to check on the authenticity of the product.
Why we need to act NOW?
- Tax evasions and criminal activities: Counterfeit products are a safe heaven for tax-evaders. The cost enormous loss to the exchequer, become a breeding ground for criminal activities and exploitation. It has a compounding negative impact on society at large.
- Loss in revenue to the manufacturer: It is estimated that nearly 30% of the FMCG products are counterfeit or spurious in nature. In a competitive market, this is a loss in revenue for the manufacturer. In the digital age, it also means that the manufacturer will not get real-time information on the demand and sale of his products, thereby rendering expensive sales pitches and consumer data useless.
- Consumer Loyalty and Brand image: Spurious food and beverage products can harm the health and well-being of a consumer, thereby denting the image of the company. In the past, adulterated baby formula has opened companies to public scrutiny and litigations.
At Acvis, we help you take proactive steps in safeguarding your brand and consumers from counterfeit products. We have catered to FMCG products ranging from personal hygiene to packaged food.
- With a backing of strong research and a multitiered loyalty management system, we offer customized solutions that will not only protect your brand but enhance its image through increased customer loyalty, engagement and awareness campaigns.
- With tamper evident and tamper proof technology that integrates into packaging, out track and trace service has been a trusted choice for many FMCGs.
- The Acviss label can then be verified at any point in the supply chain and also by the end consumer. Acviss’s app is one such medium. On verification, the user is not only able to identify the authenticity of the product, but can also get to know the product’s details and origin.