Student Highlights
How blockchain technology is building trust in the wine industry
Have you ever wondered what blockchain technology and wine marketing have in common? French-born, University of Newcastle student, Irma Dupuis, is exploring this very connection.
“My PhD is on blockchain enabled wine labels and how these impact consumer trust and their purchasing behaviour,” Irma said.
Blockchain is a system of recording information in a way that makes it difficult or impossible to change or hack data after its initial creation.
“Blockchain is a trustability technology. That is how it’s used in the wine industry.
“We are looking at what do we need to do from a blockchain producer standpoint, to help consumers feel like the information we provide them from the technology is something they can trust.
“It’s great for exports into countries where counterfeiting is an issue as it allows consumers to verify the information on the wine bottle and feel more secure that the product that they purchased is real,” Irma said.
Irma has successfully received a Wine Australia Research Scholarship to support her project.
“I’m one of the students chosen that will be supported for the rest of my PhD.
“I only found out in December. It’s very fresh and very exciting!” she said
Irma holds a MSc in Wine Management from the Burgundy School of Business (France) and a Masters in Management from EM Normandie Business School (France).
She also holds a General Academic Studies Degree in Chinese Language Literatures and Cultures from INALCO University - Sorbonne Paris Cité (France).
In 2016, Irma completed an internship as part of her Master’s thesis in the Hunter Valley with Tamburlaine Organic Wines. She then stayed on as their Marketing Manager until 2020 when she pivoted to focus on her PhD.
Tamburlaine has remained a strong supporter of Irma’s work, providing monetary sponsorship for her PhD along with First Creek Wines, MCC Label. Irma is also supported by Laava who acts as a technology partner, providing access to support, data, and staff.
While you may not have seen it in action yet, wine blockchain technology is well and truly in the market.
“The technology already exists but there is very little evidence about its interaction with consumers and whether consumers engage with it. That is what I’m researching.
“I’m also looking at a broader picture with consumer trust surrounding blockchain labels.
“I want to answer questions like ‘do consumers value this information?,’ ‘how much information is too much?’ and ‘how do marketers encourage audiences to adopt this technology?’,” Irma said.
To Irma, the benefits of blockchain technology versus QR codes are extensive for consumer trust and authenticity.
“QR codes can be replicated and can’t guarantee that the information at the end is correct.
“You can create a QR code and direct someone to a fake website or fake information. It is a problem,” she said.
The issue of counterfeiting is a problem within the wine industry with mislabeling and fraudulent claims leaving buyers with wines worth much less than their purchase price.
Irma’s research has so far uncovered a growing pattern of mistrust in wine and other products over the last five years.
“In 2017, a New Zealand wine producer was convicted of 156 wine fraud cases. The wine was sent to Australia, Japan, and the UK.
“In the last six months there have been more papers published on this subject than ever before. It’s incredible. It’s a big issue that is only growing,” she said.
In December, Irma was invited to present her initial findings at the International Blockchain Conference 2021. Her presentation was titled: 'Blockchain: The Paradox of Consumer Trust in a Trustless System - a Systematic Review'.
When considering how this technology will be used in the future, Irma has some predictions.
“The technology is at the stage where people in the industry see value, especially the big players.
“But now, the industry needs to help smaller businesses and consumers adopt the technology.
“I believe it will filter through eventually. It is already used for things like pharmaceuticals which is really important,” Irma said.
Currently, blockchain technology is advancing food safety, especially in fresh produce, at a rapid rate.
“There is a lot of research around beef. They found that recall processes in the United States used to be seven days, but for a particular trial that they performed, it was 0.2 seconds.
“They now know which stores have the products and they can just send an email that says to take certain products off the shelves.
“Food safety is definitely where we are going to get a lot of consumers interested in the capacity of blockchain. It makes sure everything is secure,” Irma said.
For her PhD research, Irma has been fortunate to work with supervisors from the University of Newcastle including Dr Sidsel Grimstad, Dr Tamara Bucher, and Professor Lisa Toohey.
“All of my supervisors have done extensive work with wine.
“Dr Sidsel Grimstad is in sustainability and management, Dr Bucher is in food science and consumer behaviour, and Professor Lisa Toohey is very involved in wine law.
“What connects us is the wine,” Irma said.
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Irma Dupuis
Irma has successfully received a Wine Australia Research Scholarship to support her research into blocking enabled wine labels and consumer trust.
In the last six months there have been more papers published on this subject than ever before. It’s incredible. It’s a big issue that is only growing.
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