Wine fraud

Wine fraud may come in several forms. In all cases the fraud relates to the commercial aspects of wine. The most prevalent type of fraud is one where wines are adulterated, usually with the addition of cheaper products (e.g. juices) and sometimes with harmful chemicals and sweeteners (compensating for colour or flavour).

Counterfeiting and the relabelling of inferior and cheaper wines to more expensive brands is another common type of wine fraud.

A third category of wine fraud relates to the investment wine industry. An example of this is when wines are offered to investors at excessively high prices by a company who then go into planned liquidation. In some cases the wine is never bought for the investor. Losses in the UK have been high, prompting the DTI and Police to act. In the US, investors have been duped by fraudulent investment wine firms too. Independent guidelines to potential wine investors are now available.

In wine production, as wine is technically defined as fermented grape juice, the term "wine fraud" can be used to describe the adulteration of wine by substances that are not related to grapes. In the retailing of wine, as wine is comparable with any other commodity, the term "wine fraud" can be used to describe the mis-selling of wine (either as an investment or in its deceitful misrepresentation) in general.

Fraud in wine production refers to the use of additives in order to deceive. This may include colouring agents such as elderberry juice, and flavourings such as cinnamon at best, or less desirable additives at worst. Some varieties of wine have sought after characteristics. For example some wines have a deep, dark color and flavor notes of spices due to the presence of various phenolic compounds found in the skin of the grapes. Fraudsters will use additives to artificially create these characteristics when they are lacking. Fraud in the selling of wine, has seen much attention focused on label fraud and the investment wine market. Counterfeit labelling of rare, expensive, and cult wines, and unregulated investment wine firms characterise this type of fraud. Wine Spectator noted as much as 5% of the wine sold in secondary markets could be counterfeit and the DTI (UK) believes losses (by investors) to rogue wine investment firms amount to hundreds of millions of pounds.

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Wikipedia