Adelphi signs 3-year deal with Arc-net blockchain traceability tech

19-Oct-2017 - Last updated on 19-Oct-2017 at 13:25 GMT

Adelphi has signed up to Arc-net's blockchain platform. Picture: Arc-net.

Adelphi Ardnamurchan has signed a three-year deal with Advanced Research Cryptography (Arc-net) to use its blockchain platform on its limited edition bottles and other products, to protect it from fraud.

Arc-net recently marked and authenticated 2,447 limited edition Adelphi bottles, which sold out within an hour of going on sale where consumers received a certificate of authenticity.

Authenticity

“By scanning a bottle on their phone, customers will be able to find out unrivalled detail about their spirit,” said Alex Bruce, MD, Adelphi.

“Every detail of each bottle’s story will be recorded, from when it was made to where it was exported, and more. The full Adelphi and Ardnamurchan story will be there.

“Story-telling and authenticity are major components of the Scotch whisky industry. By pioneering this technology, Adelphi is both advancing and uniting these vital ingredients.”

Kieran Kelly, CEO, Arc-net, based in Belfast Northern Ireland, said this is the first time a Scottish spirit has been fully traceable from field to bottle through blockchain.

“Forward-thinking distilleries like Adelphi Ardnamurchan are getting a chance with blockchain to tell their story, create an emotional bond with buyers, and safeguard their products,” he added.

Brand story

“Alex and his team are pushing the envelope of spirit and whisky production in terms of quality and traceability, and also demonstrating a realistic and pioneering approach to renewable energy and sustainability and Arc-net is delighted to be a part of their brand story.

“We are talking with a number of distilleries in the Republic about doing something similar and there is a huge amount of interest from both high-end spirit brands and more mainstream ones.”

According to Kelly, the spirit market in Scotland alone is worth about £5.5 billion. It is a prime sector for fraud and one that is growing by the day.

Arc-net recently announced a new partnership with global consultancy PwC to fight food fraud. PwC research indicates such fraud costs the global food industry about $40 billion (€34 billion) a year.

Kelly said the company had received enquiries from retailers following suspension of production at a processing plant in the UK owned by the 2 Sisters Food Group over hygiene standards and food safety concerns.

“Retailers are increasingly weighing up the blockchain as a way to reduce risk, ensure transparency and manage supply chain authentication and security,” he said.

Bruce added, in addition to a growing number of countries, globally, recognising Scotch Whisky’s Geographical Indication (GI), it is essential the consumer is able to understand the craftsmanship of making it, and for the producer to ensure the security of their route to market.

“We have a vision for the future and using the platform is an integral component in our ability to capture and share production, process and product data with our customers,” he said.

Scotland’s most acclaimed bottler of rare single cask and limited edition single malt whisky, Adelphi built its distillery on the rugged Ardnamurchan peninsula, starting production in July 2014.

Although it has no plans to release an Ardnamurchan Single Malt until 2021, Adelphi has already bottled a limited quantity of “work in progress” mature spirit, with demand outstripping supply.

Blockchain is one of the topics up for discussion at the AIPIA (Active & Intelligent Packaging Industry Association) Active & Intelligent Packaging World Congress and Hackathon 2017 in Amsterdam from November 2-3.

Click here to register for the AIPIA Congress 2017.