Over 500 bottles of fake Penfolds busted in Hainan

In a recent coordinated effort, law enforcement in Hainan Province, China, launched a significant crackdown on the sale of counterfeit and inferior wines, confiscating 506 bottles of fake Penfolds during a targeted operation.

According to a report by Nanhai Web on April 7, the initiative aimed to regulate the wine market and rigorously combat the production and sale of counterfeit wines. This enforcement action was a joint effort among the Administration for Market Regulation of Hainan province, the Administration for Market Regulation of Haikou city, and the Administration for Market Regulation of Longhua and Xiuying Districts.

The crackdown focused on major liquor and food wholesale markets inside the province such as the Yehai Grain and Oil Wholesale Market, Lin’an International Trade City, and the Seafood Wharf Wholesale Market.

The campaign saw the deployment of over 40 enforcement officers from the provincial, city, and district levels. Working alongside representatives from Penfolds, they conducted inspections on more than 20 wine merchants, seizing 506 bottles of what was suspected to be counterfeit Penfolds, oversaw the destruction of 54 bottles, and flagged six operators for legal charges.

Different from previous operations, Vino Joy has noticed the operation’s strategic approach, particularly its focus on large-scale food and beverage wholesale markets. 

These venues, along with e-commerce platforms and local tobacco and liquor stores, are notorious for their heightened risk of intellectual property infringements concerning wines. Direct engagement in these markets has proven to yield substantial enforcement outcomes.

The participation of trademark owners of esteemed wine brands further amplified the operation’s success. Their intricate understanding of their products played a pivotal role in identifying counterfeit goods, thus boosting the operation’s efficiency and laying a firm foundation for legal proceedings.

The battle against counterfeit wines in China’s market is not new. Prominent groups such as the Treasury Wine Estates, DBR Lafite Group, and Bordeaux Wine Council (Conseil Interprofessionnel du Vin de Bordeaux, CIVB) have been proactive in legal and enforcement collaborations. Their efforts have seen significant victories, including Lafite’s triumph in a 12-year trademark dispute over the use of its translated Chinese name and TWE’s success in cases related to the Penfolds trademark. The Bordeaux Wine Council(CIVB) also secured the “Bordeaux” geographical indication recognition in China.

Given the mounting pressure from reputable brands and associations, Vino Joy has observed a shift in focus among counterfeiters towards entities and regional associations with less aggressive rights protection strategies. Consequently, Vino Joy advocates for a broader adoption of legal defenses by wine companies and associations to safeguard their rights actively and stamp out such fraudulent activities.