Wine and NFTs may appear to be an unusual pairing, but it actually makes a lot of sense. NFTs can aid in the fight against counterfeit products, expand the reach of a brand, and generate additional revenue through a unique internet-based marketplace.

Wokenwine is one such "Wine + NFT" company hoping to assist these winemakers. On April 25, the company announced its intention to launch an online platform in June 2022 that will allow wineries to track their wine using NFTs. Through an online, Wokenwine will also provide wineries with access to a new market of collectors and investors.

What are the advantages of NFTs for the wine industry?

One of the most serious issues confronting the wine industry is tampering and counterfeiting – essentially misrepresenting wine in order to make more money from it than it is worth. According to a report by the European Union Intellectual Property Office, counterfeit wine and spirits cost the global beverage industry approximately $3.18 billion per year, with experts estimating that 20% of all wines sold are counterfeit.

Buyers can only go so far by being cautious and learning how to spot a fake bottle. This is why NFTs are such an exciting addition to the market. NFTs enable real-time tracking of wine bottles while also assisting with authenticity and verification on the blockchain.

"It is critical to reestablish wine lovers' trust by restoring traceability's integrity and combating counterfeiting. Selling wine through NFTs is a way of not only accomplishing this, but also of putting control of wine authentication in the hands of wine growers,"
Belair stated in a press release. Belair has decided to sell the entirety of its 2020 vintage production through Wokenwine.

They believe that NFTs attached to wine bottles have the potential to increase revenue for winemakers as well. They can hold online auctions for their wines and NFTs and sell directly to collectors and consumers without the use of intermediaries. This online NFT-based p2p (peer-to-peer) sales model can benefit winemakers in the same way that it can benefit artists and musicians – the creator receives the highest reward.
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The wine industry has already been taken over by NFTs.

Although Wokenwine's NFT+Wine platform will not be available until June, NFTs are already transforming the wine industry around the world. Penfolds, an Australian winemaking company, listed 300 bottles of Magill Cellar 3 wine for sale on BlockBar, an online NFT liquor marketplace, in January 2022. Within 10 hours of their release, all vials and attached NFTs were sold out. Interestingly, this isn't the first time Penfolds has sold wine with NFTs; the company previously sold two NFTs tied to 2021 Magill Cellar 3 Cabernet Shiraz wine barrels for $130,000.

However, if you believe Penfolds is the only company using NFT for wine, you should reconsider. Yao Family Wines, Sarah Jessica Parker's Invivo X, Robert Mondavi, and Graham Norton's He-Devil are just a few of the brands that have successfully released NFTs for their wines. The arts, music, and sports industries have all been transformed by NFTs. Without a doubt, they have the potential to benefit the wine industry as well.

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