Uflex fights war on counterfeiting with 3D Nescafé tamper-proof seal

By Jenny Eagle contact

- Last updated on GMT

Picture credit: Uflex. 'Seal of Authencity' Nescafe Classic.
Picture credit: Uflex. 'Seal of Authencity' Nescafe Classic.
Uflex has created a ‘Seal of Authenticity’ tamper-proof 3D seal for Nescafé Classic manufactured by Nestlé India.

The flexible packaging company, based in India, works with PepsiCo, Mondeléz, Ferrero Rocher, and Coca-Cola, and created the brand protection feature with an external agency that created the lens and its in-house holography division and converting/packaging business to insert the technology on to the laminate packaging.

Consumer spending will increase twofold by 2025

Ashok Chaturvedi, MD, Uflex, told BeverageDaily, the FMCG (Fast Moving Consumer Goods) counterfeit and smuggled products’ market in India stands at a staggering $10bn.

A study by advisory firm KPMG and the Federation of Indian Chambers of Commerce & Industry (Ficci) found sales of fake consumer goods are growing faster than the overall consumer products market.

It claims in 2014, the FMCG counterfeit market stood at 65% of the total market of counterfeit products, which was worth Rs 1.05 lakh crore. The FMCG counterfeit market, as such, stood at Rs 68,000 crore at the end of 2014.

Rajat Wahi, head, consumer markets, KPMG India, said consumer spending is expected to increase twofold by 2025 from increasing disposable income and favourable demographics.

Rural areas, small towns & cities

The overall FMCG market will grow 11-12% a year through the next four years," said Wahi.

"However, the counterfeit market is expected to see sharper growth as law enforcement remains weak and fraudsters look to make inroads into the market, riding on cheap products.​”

The Ficci-KPMG report says counterfeiting is rampant in ‘urban areas’, basically rural areas and small towns and cities. It adds small retailers not in the wholesale supply chain join the counterfeit market.

Since launching the ‘Seal of Authenticity’ Chaturvedi said other brands have come forward requesting similar brand protection.

By engineering ‘The Seal of Authenticity’, Uflex has imposed an insurmountable technology; application and process know-how barrier in the brand protection arena​,” he said.

We have raised the bar of competition in the best interest of our clients​.”

KPMG Emerging Trends F&B

Urban consumption growing strong​ An increasing share of incremental merchandise retail is expected to come from urban and semi-urban centres, driven by rapid urbanisation in India. The urban consumption is expected to account for 56% of the total consumption in 2021, compared to 48% in 2012.

e-commerce ​playing pivotal role. Factors like convenience, wide assortment options, swift acceptance of online platforms and advanced internet networks are likely to drive the Indian e-commerce market, which is estimated to reach $220bn in terms of gross merchandise value (GMV) with 530 million shoppers by 2025.

FDI garnering attention. ​Enabling 51% FDI (Foreign Direct Investment)​ in multi-brand retail and 100% in single-brand retail indicates the government’s focus to bring investment into the country.

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