Chinese authorities have dismantled an elaborate counterfeit wine operation in Beijing involving the production and sale of bespoke top wines, including specific vintages of Bordeaux first growths, underlining a worrying trend of counterfeiters becoming more sophisticated in their deception.
The operation, which came to light in mid-November following a tip-off, uncovered a sophisticated network of fraudsters who are adept at producing top Bordeaux, including Chateau Lafite Rothschild and Chateau Mouton Rothschild of specific vintages, to order.
Investigators have found that the counterfeiters would recycle expensive wine bottles and refill them with cheaper wines. Led by a key suspect identified only as Zhang, the group of counterfeiters operating from a courtyard in the Fangshan district would buy empty bottles of high-end wine for as much as RMB 500 (US$70.5) each. These bottles were then refilled with wine costing around RMB 300 and sold for over RMB 1,000 per bottle – a steep discount from the genuine market value of over RMB 7,000.
The police have not revealed how the counterfeiters obtained the authentic empty bottles. However, it’s not uncommon for some restaurants and hotels to resell the bottles for profit.
During the raid, police discovered 15 finished bottles of unidentified high-end wines, including Lafite and Petit Mouton, the second label of Chateau Mouton Rothschild, as well as batches of counterfeit materials.
A notable and disturbing facet of this operation was the bespoke nature of the fraud. The fraudsters didn’t just replicate expensive wines; they offered a bespoke service, creating specific vintages of prestigious Bordeaux first growths on demand, according to the police.
The strategy of accepting advance orders for specific vintages is a significant departure from the traditional mass production of counterfeit wines. This ‘made-to-order’ approach not only reduced the risks associated with mass production and storage, but also catered to specific demands, further entrenching the fraud.
During the raid, police also uncovered the use of dyes on corks to mimic the ageing process, a tactic designed to fool even knowledgeable consumers. The darker stain on a cork typically indicates longer storage and therefore a more valuable wine, a detail cleverly exploited by the counterfeiters.
It’s not clear how many of the fake wines produced so far have been sold on the market.
Zhang is currently in custody, facing charges of selling goods with counterfeit registered trademarks, a crime that highlights the ongoing battle against sophisticated counterfeiting operations.
