This action proves that, just like the luxury and cigarette sectors, the alcohol industry is highly exposed to counterfeiting. Logically, when a legitimate company sells less products, it has a direct impact on its number of employees.
4,800 jobs in the alcohol industry could be endangered by counterfeiting in the EU. According to the European Union Intellectual Property Office (EUIPO), the situation is particularly prejudicial for employment in Spain, Romania and Bulgaria, where this kind of black market respectively destroys 969, 694 and 562 jobs.
In fact, each year, alcohol counterfeiting causes declines in sales and directly affects employment rates in the European Union. As reported by “The economic cost of IPR infringement in spirits and wine“, the estimated counterfeiting cost has reached €740 million for spirits (4.4% of total consumption) and €530 million for wine (2.3% of total consumption). It represents around 3.3% of the total consumption of alcohol in the EU.
Finally, if you add the supplier sectors’ and the direct employment’s loss in the spirit and wine sectors, the total employment damage is estimated at 23,300(3).
(1) Largest-ever seizures of fake food and drink in interpol-europol operation, EUROPOL, March 2016.
(2) The economic cost of IPR infringement in spirits and wine, EUIPO, July 2016.
(3) The economic cost of IPR infringement in spirits and wine, EUIPO, July 2016.