INDUSTRIES

The Extent of Counterfeiting in the Tobacco Industry

The tobacco industry is especially exposed to counterfeiting due to high profit margins caused by high tax rates on tobacco. This combined with cigarettes being relatively easy to copy/produce, leaves huge opportunities for fraudsters to make a large profit in a short time.

Different reports estimates that around 10-20% of all tobacco is sold illicit, which corresponds to 600-650 Billion cigarettes. Thomas Schmid from TobaccoAsia, says about the problem:

“When it comes to counterfeit cigarettes, it is not only about lost revenues, damaging brand values, and misleading consumers. Counterfeit cigarettes are produced outside of any regulatory environment, they more often than not may contain low quality ingredients, unusually high levels of tar and nicotine and, in some cases even dangerous substances (e.g. chemical residues) that do not comply with government regulations.”

Source: www.tobaccoasia.com , 2017

The problem is indisputable and companies need to react in order to reduce the losses caused by counterfeits. Otherwise people’s lives are at risk, billions will be lost and brand value will erode.

How Valify can Help Companies in the Tobacco Industry

By taking advantage of RFID technology, Valify will detect whether a pack of cigarettes is fake or original within a second. Valify will make it possible to reduce the damage from counterfeits to your brand considerably, regardless of distribution channel. Valify provides your company with a holistic overview of the counterfeit market in real-time, and hence the possibility to detect and react upon the most urgent problem.

Choose Between two Different Solutions

The two different solutions that Valify offers are both optimal for companies within the tobacco industry. The big question you and your company have to ask yourselves, is whether you want the control to be performed by internal employees, or you want customers to be able to validate products on their own.

Regardless of your choice you will be able to detect and remove counterfeits from the market.

Customer Solution

  • Brand protection​
  • Easy validation​
  • Customer engagement​
  • 100% credible response​
  • A reliable brand​
  • Increased bottom-line​
  • Network across brands​

Internal Control / Kept Inhouse

  • Brand protection​
  • Parallel import protection/detection​
  • Intelligent control​
  • Anonymity​
  • Worlds fastest inspections​
  • Statistics & analysis​
  • Increased bottom-line​
  • Network across brands​