Manufacture and Supply Chain Security, Transparency and Authentic ity using

Blockchain Technology

Alex Bruce

Managing Director

Adelphi D ist i l lery L imited

A d e l p h i S e l e c t i o n T h e A r d n a m u r c h a n D i s t i l l e r y

History of Adelphi DistilleryT h e L o c h K a t r i n e A d e l p h i

D i s t i l l e r y, G l a s g o w 1 8 2 6 - 1 9 2 8A d e l p h i S e l e c t i o n ,

A r d n a m u r c h a n , 1 9 9 2 - c u r r e n t

T h e A r d n a m u r c h a n D i s t i l l e r y, G l e n b e g , 2 0 1 4 - c u r r e n t

The Ardnamurchan Distillery, Glenbeg

• Ethica l d ist i l l ing

• S u p p l y c h a i n c o n t ro l a n d t ra n s p a re n c y

• L o c a l l y s o u rc e d , re n e w a b l e e n e rg y

• S u st a i n i n g re m o t e c o m m u n i t i e s

• S y m b i o t i c re l a t i o n s h i p w i t h l o c a l e nv i ro n m e n t a n d b u s i n e s s

Relating to the consumer

• Scot land’s larder – land of food and dr ink

• Tel l ing the Scotch Whisky story

• Adding substant ia l addit iona l text “behind the labe l”

• Points of d i f ference

• Quenching the younger demographic ’s th i rst for knowledge

• Adopt ing access ib le technology

The Technology• Adelphi has teamed up with Arc -net , a technology

company based in Be l fast that spec ia l i ses in the use of b lockcha in

• Blockcha in , more commonly assoc iated with crypto currenc ies , stores event -based data and connects the product journey f rom product ion to consumpt ion

• Once uploaded and bonded to the “cha in”, the data i s incorrupt ib le and can prov ide secur i ty to :• M a n u fa c t u re r• C o n s u m e r• Re g u l a t o r y b o d y

Adelphi’s use of blockchain• A l l a s p e c t s o f s u p p l y a n d ma n u fa c t u re a re b on d e d to t h e

b l oc kc h a i n• G r o w i n g t h e b a r l e y, f a r m a n d f i e l d n a m e s , d a t e s o f p l a n t i n g a n d

h a r v e s t , m a l t i n g t h e b a r l e y• M i l l i n g a n d m a s h i n g t h e m a l t e d b a r l e y• F e r m e n t i n g a n d d i s t i l l i n g• F i l l i n g t h e c a s k s• M a t u r i n g t h e c a s k s• D i s g o r g i n g t h e c a s k s i n t o b o t t l e s a n d s h i p p i n g w o r l d w i d e

• M ost o f t h i s d ata i s req u i red by HM RC a s p a r t o f t h e ma n u fa c t u re o f S cotc h W h i s k y, s o ve r y l i t t l e a d d i t i on a l d ata ca pt u re i s re q u i re d

Building the Stock• The h istory of each batch of sp i r i t i s up loaded to the

blockcha in

• Each cask that then rece ives the sp i r i t for maturat ion rece ives an ind iv idua l code

• The l i fe of the cask and i t s contents are then fo l lowed, and any act ions are a lso uploaded to the b lockcha in :• H o w m a ny t i m e s t h e c a s k h a s b e e n f i l l e d b e fo re• F i l l i n g d a t e• S a m p l i n g d a t e s• M a t u ra t i o n w a re h o u s e a n o m a l i e s• C a s k d i s g o rg i n g d a t e

Securing the Distribution Chain

• GPS enabled scanning dev ices wi l l conf i rm successfu l arr iva l o f each bott le in each market

• Each bott le i s ass igned an ind iv idua l encrypted number

• Manufacturer i s ab le to ascerta in that the bott le has been scanned in the market that i t was dest ined for

• Manufacturer i s therefore ab le to monitor and prevent para l le l t rad ing .

Attracting and Interacting

• Ea c h b ott l e h a s a QR cod e on t h e b a c k l a b e l

• T h e con s u me r ca n e nte r t h e re cord o f eve nt s store d i n A d e l p h i ’s b l oc kc h a i n by s ca n n i n g t h e cod e a n d a gree i n g to ter ms

• T h e con s u me r wi l l t h e n s e e t h e fu l l y t ra n s p a re nt j ou r n ey* f rom f i e l d to b ott l e a n d b e a b l e to s e n d fe e d b a c k b a c k to A d e l p h i

* s o m e d a t a i s c u r r e n t l y n o t p e r m i t t e d u n d e r E u r o p e a n l a w f o r s h a r i n g w i t h c o n s u m e r s , e . g . a n y t h i n g e x c e p t t h e y o u n g e s t a g e o f t h e w h i s k y . W h i l e s u c h d a t a c a n n o t b e c h a n g e d o n c e i n t h e b l o c k c h a i n , i t i s p o s s i b l e t o p r e v e n t a c c e s s t o i t

Autenticating the Bottle

• Once scanned and reg istered, the consumer takes possess ion of an ind iv idua l , d ig i ta l ownersh ip cert i f i cate

• This cert i f icate remains with the bott le for l i fe and can be t ransferred i f the bott le i s so ld on

• This authent icat ion prov ides added peace of mind to consumers buying f rom auct ion s i tes or 3 rd party vendors

• Further research i s be ing conducted to inc lude an RF ID ch ip that wi l l detect when the bott le i s open and prevent f raudulent ref i l l ing and on -se l l ing

Building a foundation on the Blockchainconnecting value through a single platform

Identify the consumer

Digital Item serialisation

Validate supply chain members

Item level validation

Data collection model auditing

and digitisation

Capture operational and

production data

Direct consumer marketingProtect the brand

Anti counterfeit and grey

market protection

SCM control and asset

tracking

Consumer Experience

Scan the QR Code:

✓Deliver direct consumer interaction regarding taste, heritage,

sustainability via customisable high quality user experience.

✓Ability to create digital product warranty using blockchain

certification process to ensure consumer trust

✓Platform is agnostic to scannable media so QR, NFC, RFID etc can

be used dependent on market and brand requirements.

✓Ease of Consumer and other stakeholder interaction by means of

smart device.

✓Use Consumer interactions with bottles to create communities and

generate social media content, leading to knowledge sharing and

added value transparency.

✓Personalise the experience and connect directly with the consumer

to create an emotional bond between consumer and brand thus

increasing customer lifetime value.

✓Allows consumer profiling for Geographic data, demographic data,

customer profiling, consumption trend analysis etc.

•

Questions

• T h a n k you for l i s ten i ng

• T h e u s e o f B l oc kc h a i n for A d e l p h i D i s t i l l e r y L i mi te d a n d T h e A rd n a mu rc h a n D i st i l l e r y i n con j u n c t i on wi t h A rc - n et

www.adelphidistillery.com www.arc-net.io