Shanghai police has successfully dismantled a significant counterfeit wine syndicate, leading to the arrest of 11 suspects and the confiscation of more than 100 cases of counterfeited wine “from a renowned brand”, according to local police.
While the specific wine brand involved was not disclosed by the authorities, images and videos provided by the authorities indicate that the counterfeit wines bear a resemblance to the renowned Australian wine brand, Penfolds.
One of the best-known imported wine brands in China, Penfolds has been a persistent target for counterfeit operations. The high tariffs slapped on Australian wines, which had made Penfolds less accessible on the mainland further incentivized fraudsters to exploit the brand for higher profits.
According to the police, the case came to light following a report from a consumer who suspected that wines bought from an individual claiming to be a “distributor” surnamed Zeng were in fact counterfeit given the striking differences in taste and colour compared to authentic bottles.
Upon interrogation of Zeng, police uncovered a criminal network engaged in the sales, storage, and transportation of counterfeit wine, masterminded by individuals identified as Liang and Su.
A multi-provincial raid carried out in in Guangdong, Henan, Jiangsu, and other regions led to a total of 11 suspects being arrested and over 100 cases of counterfeit wine being seized. But over 10,000 bottles of counterfeit wines have already been sold so far.
Apparently since April 2022, the suspects had been procuring cheap fake wine products along with counterfeit packaging and labels. They would subsequently label and package the counterfeit wine themselves. Zeng and other intermediaries would pose as “distributors,” marketing the fake wines at prices significantly below market rates. Employing this elaborate scheme, the criminal gang managed to distribute over 10,000 bottles of counterfeit wine across various regions in the country.
The two main suspects have been formally arrested on charges of selling goods with counterfeit registered trademarks. The remaining nine suspects are also in custody.
