Bottled deception: Rising cost of counterfeit wines, spirits and gourmet goods

Malta’s rich culinary heritage makes its food and beverage sector a key part of the economy and tourism. But behind the scenes, counterfeit products are threatening trust, revenue and safety. Julio Laporta, spokesperson at the EU Intellectual Property Office (EUIPO), discusses the rising risks of food and drink counterfeiting and its impact on Malta.

The rise in counterfeit food and drink products across Europe is not just damaging legitimate businesses but putting consumer trust, public health and national economies at serious risk.

Julio Laporta

According to Julio Laporta, head of the Communication Service at the European Union Intellectual Property Office (EUIPO), the implications stretch far beyond the supermarket shelf.

“Counterfeiting of wines and spirits represents an estimated €1.3 billion in annual lost sales across the EU, with approximately 4.4% of legitimate sales of spirits and 2.3% of wine affected, which means a direct loss of 5,700 jobs in the sector. When indirect effects are included, the total job loss rises to 31,800 across the EU economy,” he says.

According to Laporta, Malta is not immune to these losses:

“In Malta, €2 million is lost every year in the wine and spirits sector due to counterfeiting, which corresponds to 4.9% of sales. The shift to online sales channels has made the issue more complex, where the growth of e-commerce in recent years, organised crime and consumer vulnerability remain the main challenges.

“Addressing these challenges requires continued cross-border cooperation among enforcement authorities and all relevant parties, enhanced cooperation with online marketplaces, and continued public awareness campaigns.”

He says the problem is not just economic but also deeply concerning from a health perspective.

“Counterfeit food and drinks pose a major threat to public health. Food fraudsters are using increasingly professional and sophisticated production methods to target high-value products, such as wine, olive oil, honey and spices. Some counterfeiters operate an end-to-end business model, covering the whole supply.”

“This is why cooperation at all levels, including producers, distributors, marketplaces and enforcement authorities, is essential to tackle this problem.”

He explains how the issue is often connected to deeper criminal networks.

“Our reports have confirmed the link between intellectual property (IP) crime and other crimes, such as drug trafficking, forced labour, cybercrime, fraud, document fraud and money laundering.

Cooperation at all levels is essential

“IP crime is seen as a profitable activity with a high return on investment, low risk of detection and relatively light punishments such as shorter prison sentences and lower fines compared to other illicit activities, which is an important challenge when fighting counterfeit products.”

The long-term consequences are clear.

“The presence of counterfeit products in the market seriously undermines the economy and the EU’s single market by affecting sales of genuine products as well as employment. This loss not only impacts businesses but also leads to a loss of revenue and taxes for governments,” he notes.

“For example, the annual loss in taxes due to counterfeit wines and spirits in the EU is estimated to amount to nearly €2.1 million.”

SMEs are especially vulnerable. According to the EUIPO’s IP SME scoreboard, one out of four small businesses in Europe claims to have suffered from IP infringement.

“With the majority of producers in the food and beverages sector being SMEs, these are especially vulnerable to the economic and reputational damage caused by counterfeiting because small companies that suffer from IP crime/counterfeiting are less likely to survive than bigger companies,” Laporta adds.

Education is key. The EUIPO recommends that consumers buy from official retailers and trusted online marketplaces and that they check product labels and packaging, as fake products usually contain flimsy packaging or spelling errors.

“Look for official EU geographical indication labels as a sign of quality and authenticity. When available, use authentication tools such as QR codes and holograms to verify the product’s authenticity. If the price is too low, be suspicious, and overall, try to be wary of anything that looks odd when buying a product, especially online,” Laporta suggests.

On the policy side, progress is being made but more is needed.

“The EUIPO supports member states in protecting IP rights and combating counterfeiting through coordinated enforcement with Europol, awareness campaigns, and policy support,” he says. “While laws exist at both national and EU levels, effective enforcement and dissuasive penalties are key to curbing IP crime.”

A major development has come at EU level, Laporta notes.

“Just days ago, IP crime was officially recognised as a priority in the EU’s fight against organised crime under the 2026–2029 EMPACT cycle – a milestone following years of advocacy. At EUIPO, we remain committed to ensuring that IP rights are not just protected on paper but properly enforced across Europe.”