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blockchain wine

An industry organization uses the Blockchain for data collection

A wine board has joined the ecosystem to digitize the wine supply chain. By reading these first lines, you probably want to know who is this wine body, from which country, from which vineyard. I will give you the name of this wine trade association in my analysis note below.

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Over 4,000 winemakers and wine cellars operate under the same wine umbrella, with over 130M wine bottles produced per year. The wine board works to make sure that the image of domestic wine both domestically and internationally is synonymous with high-quality viticulture, with broader recognition leading to increased sales and value for producers.

The goal is to bring the wine industry into the 21st century using the latest technologies. The wine board wants to do this by issuing a unique digital passport for every single bottle of wine that will be secured Blockchain technology. The industry associations for wine enables their members to take advantage of all the digitization opportunities and at the same time to promote wine at home and abroad with the goal to increase market share and to increase revenue & profits – and thus sustainability – for all wine makers in the long term. 

Producers will have access to all the data about their products in real-time – who buys and drinks them, when, and where and how.

Blockchain is a new way of storing information, preserving it without modification, accessing it and integrating new information that becomes unforgeable. The information is recorded on the equivalent of a vast distributed register, i.e. shared on the computers (called “nodes”) of all the members of the network. The distributed nature of the registers allows transparency and auditability.
The main advantages are decentralization, security and immutability. The applications of blockchain aim to create trust where it is lacking or to replace centralized trust mechanisms.

Wine – Vision 2030 Project

With brands and companies looking for more ways to create new direct relationships with their customers and boost sales, the blockchain technology ensures the security and transparency needed to verify goods and create smoother experiences for all stakeholders, with data utilized to make continued improvements.

Leveraging blockchain storage through the Ambrosus network, winemakers will be brought to a single digital platform that users can access to learn more about the wine they purchase in a shop or order in a restaurant.

This digital one-stop shop for all wine proof-of-origin and traceability information will ultimately boost wine export potential and help increase market share. The project will start with 10 wineries and approximately 10,000 bottles with an additional 100,000 labels to be distributed to additional wineries in the coming weeks. The goal is to expand the project to the majority of the 4,000 winemakers over the next 2 to 3 years.

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Why is this project so important?

From academic studies to customer research, it is repeatedly shown that customers are willing to pay more for organic or artisan food. Tapping into a lucrative market, the number of goods classified as organic has risen, with Europe leading the way.

Despite this organic trend valued at $60 billion in America alone in 2020, there continues to be confusion and a lack of trust over what is actually organic, partly because of inconsistent misleading labeling, and partly because of a lack of transparency in production.

The Blockchain makes it easy for users to verify the organic status of wines and make better consumer choices.

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ambrosus wine blockchain

Real-time data collection and analysis

The project is a joint partnership between Ambrosus, data-certification company ZIMT, the producer of technical components 3DAG, the online wine platform winemaker.ch, and Swiss Wine Promotion. Ambrosus, ZIMT, 3D, winemaker.com, and Swiss Wine Promotion each play a role in benefiting all stakeholders along the value chain.

The initiative is anticipated to increase the market share of Swiss wine in Switzerland and abroad. The digital platform is helping build trust with conscious shoppers and increase sustainability—all wine bottles will receive a label with a custom QR code, which will portray origin and winery documents, necessary certifications, transportation information and other key data.

The wine label is linked to the meta-data for every bottle or carton of wine that is stored on the blockchain network. Valuable information about the respective winery and wine bottle will be displayed upon scanning the holographic label. This data includes the type of wine, grape varieties used, production date, cask history and age, as well as data about storage containers, manufacturer certifications, contracting party certifications, laboratory quality testing results, facility location, shipping documents, and traceability details.

All companies that decide to take part in this project benefit from many useful functions, such as the activation of sales channels, the monitoring of parallel imports, automated product recall and other functions for intelligent customer loyalty (e.g. VIP memberships, direct sales, promotions, cross-selling, etc.). At the same time, the member companies and the Swiss Wine association gain valuable business intelligence information from the scan and demographic user data – and all of this with a smart holographic label with an individual QR code on each wine bottle.

Here’s how it works:

  • Each bottle of wine is issued a secure holographic label which is produced and printed by 3D AG. Attached to each bottle, this label contains a unique serial number secured by blockchain that represents a digital identity. The ID and consumer experience is managed by ZIMT’s digital platform, while related data is stored on the Ambrosus blockchain.
  • Consumers simply need to scan the QR code on the label to learn about the bottle of wine they are purchasing. All information — where it’s made, by who, ingredients used, pairings, photos of the vineyard — are displayed according to the language settings on the person’s phone (with English, French, German, and Italian currently supported).
  • The integration with winemaker.ch means that once a bottle is scanned, users can proceed directly to the site to make a purchase.

Behind the scenes, Ambrosus Ecosystem’s decentralized platform will receive the datasets and pack them together in bundles on the public network for complete transparency. Every time there’s a scan on a bottle, the operation will be recorded as part of an Ambrosus bundle. This bundling of assets and events, which are processed and verified by a scalable architecture and over 600 decentralized nodes, means that near real-time information can be relayed extremely quickly and cheaply while ensuring the highest levels of security.

This project enables every winegrower, big or small, to digitize their wines in a simple way and to create a so-called “digital twin”. All important data, such as certificates or laboratory reports, can be stored on the platform and assigned to each wine.

Sergii Grygoriev, Head of business development at Ambrosus

Blockchain benefits

As a multi-blockchain middleware SaaS, ZIMT sends bundles of collected data to the Ambrosus network through its own gateway node. “We are starting off this project with 110K unique IDs, and with steady expansion, the number of bundles with Swiss wine data uploaded to our network will greatly increase, benefiting node operators, says Sergii Grygoriev, Head of Business Development at Ambrosus.

By allowing consumers to easily look up product information about any individual bottle of wine, the Swiss Wine Board will be able to derive more value and improve trust in the high-quality products that affiliated wineries deliver. The total consumption of Swiss Wine globally amounts to approximately 130 million bottles per year.

In addition, the German-Swiss Wine Association will also be able to refine its business strategy by leveraging data gained from consumers who scan the products that come under its banner. With information such as precise consumer demographics and place & time of consumption, the Swiss Wine Board can improve customer experience and expand its reach.

The Swiss Wine project 2030 expects to accomplish the following in the next decade:

  • Increase the local Swiss market consumption from 30% (the current figure) to 50%;
  • Enhance international exports from 1% (current) to 10%;
  • Create threefold earnings per bottle.

Crucially, Swiss Wine is just the tip of the iceberg — no matter the industry, companies around the world can utilize QR codes attached to unique individual identities for their vegetables, cheese, or any other consumable product.