Digitalisation ‘critical’ to stay competitive
As interest in blockchain technology increases, one provider has stressed the importance of digitalisation in the spirits industry to remain competitive.
In April this year, London-based Proofworks launched a platform with a proprietary SaaS (software as a system) solution to help digitalise the spirits supply chain from production, maturation and bottling to customer engagement and digital ownership.
Speaking to The Spirits Business last month, Proofworks CEO Rob Hollands said: “Demand for connectivity is high, as brands and producers realise the potential it has to deliver previously unearthed data and insights, and how valuable this visibility can be to solve genuine business and consumer challenges.
“As is the case for almost every industry, digitalisation is critical to remain competitive and to meet the demands of consumers.
“We’re at a key milestone in the digitalisation of the spirits sector. The landscape as we know it is at a point of significant change and we’re laying the foundations for brands to solve current challenges and unlock future opportunities.
“We’re supporting the industry in implementing proven technologies that deliver the kind of transformation the industry needs to protect brand heritage whilst embracing exciting new innovations.”
Proofworks is powered by Web3 and blockchain technologies. The company already has deployments in Scottish, Irish and American distilleries and warehouses.
The technology not only allows producers to be efficient with tracking inventories, but it can also aid sustainable endeavours.
“The focus on sustainability goals today means spirits businesses need robust data that stands up to stakeholder and consumer scrutiny when making public sustainability statements,” Hollands explained. “Our Proofworks platform can provide crucial data on sustainability metrics such as energy and water usage.”
Tackling fraud
Furthermore, Hollands highlighted the ability to tackle counterfeit casks and fraud.
“In 2023, more than £3 million [US$3.8m] of losses were reported to Action Fraud over alcohol investments,” Hollands said. “The control and ownership of casks today is still largely through paper-based transactions and documentation that can – and often does – lead to error.
“With Proofworks, every cask and bottle has a unique digital identity and is connected through technologies such as NFC, or QR code with an immutable record of the physical product recorded on the blockchain.
“This reduces the possibility of fraud and introduces new efficiencies as the trading process is significantly speeded up and provides peace of mind to all stakeholders.”
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