Table 5

Within-case analysis

CaseDescriptionVariableRating
BC systems
AData on key activities of cultivation and production processes (e.g. days and kinds of insecticide treatments, harvest calendar, etc.) are collected and stored on the Ethereum BC. Data-entry is merely manual: administrative staff enters information onto the BC using a front-end graphical software interface installed on the devices (e.g. tablets, personal computers) already in use. No investment in new hardware and no changes in operational processes were requiredData veracity control measuresNo control
There is a time lag between the BC transactions timestamp and the time when the concerned events occurred. In many cases, the delay can exceed one monthData-entry frequencyLow
A QR code applied to each bottle allows customers to access data. Scanning the QR code with a smartphone camera, customers are directed to a web page where stored information is presented. They can read the specific production batch of each bottle and be acknowledged about the historical background of the wine, details on processes (e.g. where the grapes were grown, the nature of the carried out treatments, etc.) and grapes/wine ownership transfers (detailed at the lot level), as well as additional information about the companySmart labels
+
Customer communication channels
QR code
+
Web page
Most of the information presented on the website related to cultivation (e.g. kinds of fertilizers, form of breeding, quantity of grapes harvested, water consumption) and winemaking processes (grape variety used, fermentation temperature, quantity of bottles produced, type of tartaric stabilization) is not provided with the link that redirects to the relative BC transactions where the data hashes were initially saved. Moreover, all the photos of the vineyard, cellar, and cultivation activities displayed on the website as well as the product organoleptic characteristics and the information on the geographical context (e.g. vineyard surface area, locations of the vineyard and cellar) are only stored on centralized serversProportion of accessible data for which hashes are saved on BCLow
BThe Ethereum BC is used to store process-related information synchronized with data previously collected and saved on the Italian agricultural information system for reasons of compliance with national wine norms. These data are certified by preliminary checks conducted by third-party certification bodies and prescribed by the Italian legislationData veracity control measuresThird-party certification bodies
Data synchronization between the Italian agricultural information system and BC is almost immediate. Information is generally entered on the BC within 24 h of data collectionData-entry frequencyHigh
Each bottle comes with an NFC tag, applied under the front label, that the buyers can scan with a mobile device. These tags work with additional security functionalities, specifically data encryption and unique, permanent, and read-only serial identifiers (UID). The use of a dedicated application for mobile devices that support NFC technology is required to read the encrypted data saved on the tag. The application is designed to run on iOS and Android and provide the consumer with several types of information (e.g. textual description, photos, videos) about the product, the company, and the wine-making processesSmart labels
+
Customer communication channels
NFC Tag
+
Mobile application
Most of the presented information, which is specific for every single production batch, has their counterparts saved on BC. In particular, while all the information related to cultivation (e.g. date of harvesting, quantity of grapes harvested) and winemaking processes (e.g. days of soft pressing, quantity of bottles produced) is associated with the relative BC transactions links, the access to videos and photos of vineyards and cellar redirect to external websites not related to BC. As to the product organoleptic characteristics, they are only stored on centralized servers. Instead, information related to geographical context is provided in combination with the links to the associated BC transactionsProportion of accessible data for which hashes are saved on BCHigh
CThe VeChain Thor BC is used to record product-related information concerning the phases from agronomic activities to the bottling of every production batch. Data come from on-site inspections made by the same third-party certification body mandated by the national central control authority that operates to guarantee compliance with Italian wine normsData veracity control measuresThird-party certification bodies
Information is firstly stored in the certification body's servers and then synchronized with BC. The process from data collection to data synchronization on BC usually requires less than a dayData-entry frequencyHigh
An NFC tag is applied to each bottle. A UID is encoded into each tag and data encryption is used. Customers use a dedicated mobile application to scan the NFC tag and access detailed information on products and production processes that is recorded on BC.Smart labels
+
Customer communication channels
NFC Tag
+
Mobile application
Most of the data accessible to consumers related to cultivation (e.g. date of pruning and harvesting, quantity of grapes harvested), vinification (days of cold maceration, type of barrel used for fermentation, number of bottles produced) as well as the geographical context are described in detail and linked to the associated BC transactions for which the data hashes were originally saved. Only a few of the displayed information – namely certifications and awards of the company, documents related to company commitment to sustainability, wine organoleptic characteristics, bunch thinning percentage – does not have its counterpart stored on BC.Proportion of accessible data for which hashes are saved on BCHigh
BC systems
DFor each production batch, during the different phases from grapes harvesting to bottling, a large amount of data are manually entered by administrative staff in the platform provided by the technology provider using a dedicated front-end interface. No purchase of new hardware was required. AI checks the correctness of some quantitative data-entered by comparing with data previously uploaded on the platform (e.g. data related to wine production volume is compared with the quantity of harvested grapes; misalignment warns about the grape origin or the bunch thinning percentage, and in turn on wine quality)
Moreover, some automatic controls are carried out to prevent data-entering mistakes
Data veracity control measuresArtificial intelligence
Each new data, before being immutably saved on the Ethereum BC, is stored in the central servers of the technology provider. Then, a notification message is sent to the company asking for confirmation about the data sent. Only when data content is confirmed, data are stored on the BC. If the company finds some inaccuracies in the data, this is deleted, and the transaction not executed. The time period between data collection and the moment when data are entered on BC usually ranges from a few days to one weekData-entry frequencyMedium
Each bottle is labeled with a QR code that is connected to its batch. Scanning the QR code with the camera of their mobile device, customers have access to a web page where information is presentedSmart labels
+
Customer communication channels
QR code
+
Web page
Information related to cultivation (e.g. type of insecticide and fungicide treatments, date of winter pruning, date of harvesting) and wine-making processes (days of cold pressing, fermentation mode, quantity of bottle produced) is linked to BC transactions. Only few data related to the company (e.g. received awards) and product characteristics (e.g. alcoholic strength, organoleptic characteristics) are not linked to any BC transactionProportion of accessible data for which hashes are saved on BCHigh
EUsing a web-based platform, the administrative staff manually uploads information related to each wine, such as digital copies of the certification of geographical origin or documents to demonstrate compliance with production specifications. Information/documents uploaded by the company are not subject to any type of controlData veracity control measuresNo control
As to process-related information that is saved on the Ethereum BC, there's a significant time lag between transactions timestamp and the moment when the described events occurred, which generally range from some weeks to several monthsData-entry frequencyLow
The platform generates a specific QR code for each production batch. Each bottle belonging to the batch is then labeled. Customers scan the QR code to access a web page containing all the information provided by the companySmart labels
+
Customer communication channels
QR code
+
Web page
Only a small portion of the accessible information is linked to the respective BC transactions. In fact, data on awards received by the company, certifications and geographical context are provided with links to BC, whereas most of the information on wine characteristics, cultivation (e.g. type of plants protection treatments, quantity of grapes harvested) and production processes (e.g. quantity of bottles produced, grape variety used) are only presented on the website and saved on centralized servers as well asProportion of accessible data for which hashes are saved on BCLow
Counterfeiting protection
AGiven the product/price positioning (everyday wines sold at a low price (Wine Folly, 2016)), the company intends to reassure customers about the wine quality to avoid the perception that low price is due to a poor quality and safety. Quality is only a qualifying competitive factor (i.e. one that does not create extra business if the firm improves its performance, but can certainly cause lose business if performance falls below a certain point), thus the company aims to share with customers some information about product origin, cultivation/vinification processes, and quality measures so as to prevent them to assume that low prices mean a not-safe wine that can cause health problems, rather than to provide true empirical evidence of grape origin or adherence to production and processing specifications, since the company does not own special production skills or resources to differentiate from competitorsUpstream counterfeiting protectionEntry-level
Given to its focused target segment (a relatively small number of national large-supermarkets), the company can exert a rather close control on distribution channels and has never experienced problems due to downstream counterfeiting. In addition, the low price and margins make the diffusion of counterfeit products a not-attractive option for a potential offenderDownstream counterfeiting protectionNull
BCompany B produces weekend wines of high international rating, produced in a famous wine area in compliance with stringent PDO specifications, targeted at customers who enjoy fine wines and are willing to pay a high price (Wine Folly, 2016). Competitive advantage roots on both special resources (i.e. grape suppliers located in an important wine area) and skills (i.e. superior viticulture, winemaking, and quality assurance know-how are needed to produce top-quality crus, create wine blends and be compliant with PDO specifications). The guarantee of genuineness, honesty, and transparency is a prerequisite to be competitive, especially abroad, where the company makes most of the business and the brand is less known. Thus, the company aims to provide consumers with true guarantees that grapes come from the areas identified by PDO specifications and that production processes are effectively conducted as promised. The management is aware of the consequences that false statements could have on customer trust, as shown by the several scandals in the wine sectorUpstream counterfeiting protectionHigh-level
Given the target market segment -i.e. international market (more than 50% export), wine Ho.Re.Ca. channels (i.e. restaurants, hotels, bars and catering service providers) including wine specialized shops- and the high-price positioning, the management considers re-labelling, re-filling and, in general, the diffusion of false bottles a serious threat to the company reputation and its business, especially because these fraudulent practices primarily concern foreign markets and more expensive wines. The company aims to make customers confident that the high price they paid is for bottles whose authenticity can be verifiedDownstream counterfeiting protectionHigh-level
CCompany C produces special occasion wines of high international rating, in one of the most important wine areas in compliance with stringent PDO specifications and sold at a premium price (Wine Folly, 2016). Given these product characteristics and the premium-price positioning, the management believes that it's vital to satisfy the customer's desire to know the true story behind each bottle, as only if the company is able to provide genuine information that demonstrates the high value for price ratio the customer will re-buy. Thus, the company aims to provide consumers with true guarantees that grapes come from the areas identified by PDO specification and that production processes truly meet the high-quality standard of quasi-handcraft production on large-scaleUpstream counterfeiting protectionHigh-level
Given the target market segment (international wine Ho.Re.Ca. including specialized shops, 60% export) and the premium-price positioning, the management is strongly concerned about illegal reproduction of the company fine wines and considers essential to guarantee the authenticity of each bottle the customer buys. Any failure in assuring the genuineness of wines has a negative impact on the company image and reputation. Thus, the company aims to assure that the very high price they paid is for bottles whose authenticity can be verifiedDownstream counterfeiting protectionHigh-level
DBusiness strategy aims at differentiating the product from the traditional everyday wines, by rooting on distinctive resources: owned vineyards located in a special terroir (narrow wine area, morainic hills, unique microclimate) that guarantee a better quality of grapes. The resulting product is a “niche” everyday wine whose slightly higher price than everyday wines is justified by higher quality. This business strategy assumes that even for everyday wines, whose purchase significantly depends on the price, some customers can search for products whose quality level is more than simply “acceptable” and are willing to pay a small extra-price for this additional quality. Obviously, customers/consumers do not pretend that quality levels (and associated guarantees) be comparable to those of more expensive wines. Therefore, for management it is important to make customers aware that attention to quality is higher than that of a typical everyday wine producer and provide assurance (data, pictures, videos on vineyards, and cultivation processes) about the grape origin on which quality differentiation is basedUpstream counterfeiting protectionMedium-level
Being a recent startup, whose brand awareness is still limited also within the focused target segment it serves (a relatively small number of national large-supermarkets), the company has never experienced problems due to downstream counterfeiting. According to management, the medium-price positioning prevents downstream counterfeiting being fraudulent replica not profitableDownstream counterfeiting protectionNull
EGiven the product characteristics (everyday wines) and the budget-price positioning (Wine Folly, 2016), the management intends to avoid customers perceive that very low price has been achieved by reducing costs of both raw materials and production quality controls with a negative impact on the wine safety. Although for the company quality is only a qualifying competitive factor (everyday wines purchase depends on the price), the management intends to reassure customers about the wine quality and safety by sharing some information about product origin, cultivation/vinification processes, and quality measures. The key message is “do not worry, we have nothing to hide” rather than “we intend to provide true empirical evidence of grape origin or adherence to production and processing specifications.”Upstream counterfeiting protectionEntry-level
Given to its focused target segment (a relatively small number of national large-supermarkets), the company can exert a rather close control on distribution channels and has never experienced problems due to downstream counterfeiting. Moreover, the very low price makes illegal reproduction a not significant problemDownstream counterfeiting protectionNull

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