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Compliance, Engagement, Gifting & Authentication: Connected Packaging in the Spirits Industry hero image

Compliance, Engagement, Gifting & Authentication: Connected Packaging in the Spirits Industry

The premium spirits industry stands at the intersection of tradition and innovation, where heritage-rich brands are increasingly embracing modern technologies to meet evolving consumer expectations and regulatory landscapes. Connected packaging - leveraging tools like QR codes, NFC tags, and Digital Product Passports (DPPs) - offers a multifaceted approach to enhance transparency, engage consumers, and safeguard brand integrity.

EU Spirits Labelling Regulations: Navigating Compliance

As of today, the European Union does not mandate ingredient and nutritional labelling for alcoholic beverages exceeding 1.2% ABV, including spirits. However, the EU’s Regulation (EU) 2019/787 outlines specific requirements for the definition, description, presentation, and labelling of spirit drinks. This regulation emphasises the protection of geographical indications and stipulates that spirit drinks must comply with presentation and labelling requirements set out in Regulation (EU) No 1169/2011, unless otherwise specified.

In anticipation of potential regulatory changes and to align with increasing consumer demand for greater transparency, several premium spirits producers have adopted voluntary measures to disclose ingredients and nutritional information. These initiatives not only foster trust but also position brands as industry leaders in transparency and authenticity. As more companies take this approach, the consumer expectation for this to become standard will also increase - putting pressure on labelling space which is valuable real estate for supporting the premium positioning of many brands.

How Connected Packaging Enhances Consumer Engagement

Consumers are seeking more immersive experiences that transcend traditional product consumption and add greater value to the brands that they choose. Connected packaging enables premium spirits brands to offer interactive and personalised content, fostering deeper engagement, whilst simultaneously being able to deliver complex information to the consumer, including: 

  • Product Provenance & Craftsmanship: Share the rich history, origin stories, and meticulous production processes behind each bottle, satisfying consumer curiosity about authenticity and heritage. 

  • Tasting Notes & Mixology Guides: Provide detailed flavour profiles, serving suggestions, and cocktail recipes, enhancing the consumer’s appreciation and enjoyment of the spirit. 

  • Exclusive Content & Virtual Experiences: Offer virtual distillery tours, masterclass sessions with master distillers, or augmented reality experiences that bring the brand story to life. 

  • Loyalty Programs & Personalised Offers: Implement digital loyalty schemes, offer personalised recommendations, or grant access to limited-edition releases, strengthening brand loyalty. 

By freeing the brand from the space constraints of the label, and by connecting a digital experience to a physical item, the consumer is instantly connected to a heightened brand experience - adding to their enjoyment, explaining how to consume in different ways or rewarding their loyalty.

Case Study: Absolut Gifting

Absolut created a bottle that features a unique QR code serving as a gateway to a personalised gifting journey. Friends can pick a theme and collectively craft celebratory messages using a mixture of voice notes, written messages, photos, emojis, and more - creating a memorable gifting experience that everyone can share. Senders could preview and amend their message before gifting the bottle. Receivers who were gifted the bottle scanned the unique QR code and pointed their device at the bottle to unveil the messages in AR. Read more here.

Brand Protection: Combating Counterfeits with Connected Packaging 

Counterfeit spirits pose significant risks to consumer safety and brand reputation, with estimates of counterfeit spirits ranging from 25% to 40% of total alcoholic spirits consumed globally. Connected packaging offers robust solutions to authenticate products and ensure integrity and consumer confidence: 

  • Product Authentication: Unique digital identifiers embedded in packaging allow consumers and retailers to verify product authenticity instantly, deterring counterfeiters. These can be delivered using QR code, authenticating to the cloud via two factor authentication or via NFC. 

  • Supply Chain Transparency: Connected packaging enables tracking of products throughout the supply chain, ensuring transparency and reducing the risk of counterfeit goods entering the market.  

  • Digital Product Passports (DPPs): Implementing DPPs provides a comprehensive digital record of a product’s lifecycle, from raw material sourcing to manufacturing processes, enhancing transparency and supporting anti-counterfeiting measures.  

  • Blockchain Technology: Leveraging blockchain ensures immutable records of product origin and journey, allowing consumers to verify authenticity instantly. 

Engagement and brand protection are both helped by moves being made by GS1, the global standards body for barcode technology. GS1 Sunrise is an initiative to move the global supply chain towards two-dimensional (2D) barcodes (QR codes) that can carry more information. By 2027 2D barcodes will be accepted at point-of-sale (POS), tracked through the supply chain and also scannable by consumers. The shift has already begun with the new technology being tested in 48 countries across the world, representing 88% of the world’s GDP.

The GS1 Digital Link standard enables QR codes to act as universal digital identities for products. Ensuring you use an ID management platform that is GS1 compliant is important as we move towards Sunrise so you can drive consistency across your portfolio, adhering to the highest standards when it comes to interoperability across the supply chain and for consumers.

By adopting GS1 Digital Link, Premium Spirits brands can:

✅ Ensure global consistency in product information.

✅ Support multi-use QR codes (for compliance, marketing, and authentication).

✅ Reduce label clutter while improving data access.

✅ Link to multiple experiences from a single QR code (e.g. regulatory info, product storytelling, loyalty programs).

Read more about why GS1 Sunrise and GS1 Digital Link are important.   

Roadmap for Adopting Connected Packaging in the Premium Spirits Industry

Change is coming, and brand owners need to be ready, so below is a simple roadmap that will help you plan for a more connected future: 

  1. Consult Industry Experts: Engage with professionals to assess how connected packaging can align with your brand’s goals and regulatory requirements. 

  2. Select a Compliant ID Management Platform: Choose a platform that facilitates the creation and management of digital identities, ensuring compliance with industry standards. 

  3. Ensure GS1 Compliance: Adopt GS1 standards to maintain consistency and interoperability across the supply chain. 

  4. Implement Authentication Technologies: Integrate QR codes, NFC tags, or blockchain solutions to enable consumers to verify product authenticity seamlessly. 

  5. Develop Engaging Digital Content: Create interactive experiences that resonate with your target audience, enhancing brand storytelling and consumer engagement

  6. Collect and Analyse Consumer Data: Utilise connected packaging to gather insights into consumer preferences and behaviours, informing future marketing strategies. 

  7. Monitor and Iterate: Continuously assess the effectiveness of connected packaging initiatives and refine approaches based on consumer feedback and technological advancements. 

Embracing connected packaging is not merely a technological upgrade but a strategic imperative for premium spirits brands aiming to thrive in a competitive and evolving marketplace. By integrating these innovations, brands can enhance transparency, foster deeper consumer connections, and safeguard their consumer trust.

If you're a spirits brand looking for help with GS1 Sunrise and beyond - get in touch and we can talk you through our platform io.tt or even start you on a free trial.

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