Blockchain to Enable Italian Wine Conquer the World Market
The Tattoo Wine platform plans to manage more than 5,000 Italian wine labels from Europe, Africa, America and Asia. The biggest blockchain-based e-commerce platform is trying to promote the value, source and validity of Italian wine production on Asian markets.
Designed by EY on behalf of Blockchain Wine Pte Limited, a Singapore-based company that sells vintage alcohol, and backed by The House of Roosevelt, the structure will manage more than 5,500 brands from countries such as Australia, Europe, NZ, Korea, Africa, China, America and Italy. Aiming at combining product traceability, online sales and a “tokenization” system in a single solution, viz. the conversion via smart contract of the rights of a physical asset into an electronic device registered on the distributed ledger tech (DLT).
Transforming the Entire Sector
The main purpose is to propose to all wine manufacturers “affiliated” to their network, and with them also suppliers and logistics workers, an instrument to track the attribution and class of products, trade using the appropriate digital tokens, tracing shipments, checking storage and deliveries and also managing insurance coverage for shipments.
More specifically, the DLT traceability features allow users to monitor every product through a distinctive QR code that can be glanced at by the consumer through smartphone to access data like the names and places of the vineyards and how they are actually cultivated grapes and transport and handling of every lot.
This solution certainly contributes to supporting the positioning of the Italian industry vinicola, a sector which recorded a 4% increase in foreign sales in the Q1 of 2019, for a value of €30 million.
Italian Wines are Conquering the Global Market
The wine market in Asia, in this sense, represents a huge opportunity: consumption on the continent is already worth somewhere around 57.3 billion dollars today and as per estimates by the research company Statista it should grow at a rate of 4% per year for the next four years. If instead we look at the value of the market on a global scale, in 2017 Italy exceeded 300 billion dollars and the projection for 2023 speaks of total sales of 423 billion.
Italy pursues with a limited market share, although in strong acceleration, and pays for the delays and complexity of the distribution chain. Now, with a blockchain-supporting platform, there is the leeway of reversing the trend.
Italy has been using innovative technologies including Blockchain to
transform the industry in the country and Made in Italy products. Also, EY started using DLT to trail
wine futures using blockchain, and further help clients validate the quality, source, authenticity of products.
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