Counterfeit wine in genuine bottles: Secondhand e‑commerce platforms harbor shady practices in the trade of empty wine bottles.

 As the year draws to a close, consumption of baijiu is on the rise, and cases involving the production and sale of counterfeit or substandard baijiu are becoming increasingly frequent. In some areas, high-profile cases involving hundreds of millions of yuan in fake liquor have been exposed, while in others, scrap collection stations, tobacco shops, and pig farms have turned into hotbeds for counterfeiting and illegal sales, drawing widespread attention.

  A journalist’s investigation revealed that some individuals are collecting empty bottles of premium liquors and reselling them. On certain secondhand e‑commerce platforms, the price of an empty Feitian Moutai bottle ranges from over a hundred yuan to several thousand yuan. Low‑cost bulk liquor is then poured into these genuine bottles, “transforming” it into mid‑ to high‑end spirits, which are sold to rural supermarkets, small tobacco and liquor shops, restaurants, and other outlets. Some of these bottles are also used as gifts or to settle debts.

   The trade in empty liquor bottles is rampant.

  Counterfeit liquor was produced and sold next to a scrap collection station.

  The Nanhuang Road Police Station of the Danyang Public Security Bureau in Zhenjiang, Jiangsu Province recently announced that, in the second half of 2023, it dismantled a counterfeit‑alcohol production and sales operation located next to a scrap‑collection station in Guyang Town, Dantu District. Authorities arrested three suspects and seized more than 20 cases of imitation well‑known baijiu at the scene. Meanwhile, according to media reports, police in Sichuan and Chongqing have recently cracked a major case involving the manufacture and sale of counterfeit high‑end branded baijiu, with the total value of the crime reaching 110 million yuan.

  A journalist’s investigation revealed that, in addition to the usual practice of tobacco and liquor shops collecting empty bottles, an online market for trading empty liquor bottles has now emerged. On secondhand e‑commerce platforms like Xianyu, baijiu and foreign‑spirits bottles are often listed as decorative items or film‑and‑TV props; some are priced as low as 0.1 yuan but require offline negotiations to finalize the price, while others carry fixed listings. Some sellers on Xianyu report that bottles from the 2023 and 2021 vintages of “53° Feitian Moutai” are listed at 200 yuan and 260 yuan, respectively. Bottles from the 2014 and 2016 vintages of Feitian Moutai fetch prices ranging from 500 to 800 yuan, with sellers noting, “They come with the ribbon—perfect for collectors.”

  After collecting large quantities of empty liquor bottles, some criminals began using rudimentary methods to produce and sell counterfeit alcohol for profit. “My uncle was caught making fake liquor and is still serving his sentence,” said Shang, a suspect in one case. Rather than learning from this, he reasoned, “If I keep it small and don’t ship much, no one will notice.” Using a scrap‑yard in Zhenjiang as a cover, he arranged for people to collect empty bottles, caps, packaging boxes, and cases from high‑end baijiu brands, then blended and bottled the product using low‑priced base spirits along with tools and components. To minimize risk, Shang produced on demand and specified delivery locations. Some facilities engaged in the manufacture and sale of counterfeit liquor were even more alarming in terms of hygiene: in 2023, the Erling Police Station of the Danyang Public Security Bureau in Jiangsu uncovered an illegal workshop that had produced over 12,000 bottles of fake liquor, located in a remote, filthy, and dilapidated pig farm. Such operations not only inflict financial losses on consumers but also pose serious health risks.

   There are many schemes involved in the production and sale of counterfeit alcohol.

  According to data from Qichacha, China has approximately 200,000 enterprises involved in the baijiu industry.

  During field visits to the grassroots level, reporters learned that most cases of counterfeit liquor production and sales involve small family-run operations that bottle low‑grade spirits—whose taste closely resembles that of a well‑known brand—into mid‑ to high‑end bottles. The process begins with bottle washing: some use tap water, while others rinse the bottles with lower‑priced liquor. Next comes filling; in some instances, the liquor is even poured directly through a funnel lined with a nylon stocking. Finally, the bottles are capped, labeled, and packaged in cardboard boxes.

  An investigating police officer explained that illegal operators typically obtain empty liquor bottles through three channels: first, by purchasing them from scrap collectors; second, by buying them from hotel staff; and third, by sourcing them from a certain region in southern China. They can even acquire ancillary supplies such as packaging boxes, wine gift boxes, bottle caps, anti-counterfeiting labels, and QR codes. “I’ve also seen cases where the bottoms of baijiu bottles are ground off and refilled, with the bottles themselves appearing brand new—techniques that are truly beyond imagination.”

  A journalist’s investigation revealed that bottled baijiu is being smuggled into the underground market, with illegal operators employing an order‑based production model—producing exactly what their clients demand. Some engage in contract manufacturing solely for processing fees, operating with extreme concealment, making enforcement, sentencing, and conviction particularly difficult. They typically keep no inventory on hand, yet maintain stable supply chains for bottles, labels, QR codes, and packaging; some even complete the entire bottling process while en route to delivery, right inside the vehicle. Additionally, certain buyers procure Yanghe Daqu liquor themselves and commission others to bottle and package it into the Mengzhilan series, intended for rural banquets.

  A frontline police investigator told reporters that without opening the bottle for alcohol testing, it’s extremely difficult for consumers to tell genuine from counterfeit simply by looking. He showed a confiscated bottle of fake Wuliangye, whose packaging box even featured a security code on the top, along with the Wuliangye anti-counterfeiting website and a QR code for downloading the official anti-counterfeiting app. “We couldn’t distinguish between real and fake ourselves; we had to call in experts from the liquor company’s anti-counterfeiting department to help verify it,” he said.

  An industry insider familiar with the sector revealed that counterfeit versions of Tiege Moutai are relatively common, as its anti-counterfeiting measures are less sophisticated and thus easier to replicate. Some counterfeits employ high‑precision professional coding machines and extremely fine pinholes, making them difficult to distinguish from the genuine article. Compared with newly packaged Moutai, older vintages from years ago are even more susceptible to imitation, owing to simpler anti‑counterfeiting safeguards and higher resale prices.

  “This gray‑market industry boasts substantial profit margins, with increasingly specialized divisions of labor and widespread side‑businesses, making it prone to recurrence even after enforcement actions,” an investigating officer explained. Most perpetrators have prior criminal records, and the prevalence of cash transactions further complicates law enforcement. Moreover, once cracked down upon, such activities tend to resurface quickly. Many offenders hold legitimate jobs but, in pursuit of quick profits, either take on part‑time roles filling counterfeit or substandard baijiu for resale or assist family members by procuring materials and connecting with downstream buyers—collaborating to produce and sell fake liquor.

   Strengthen regulation of e-commerce platforms.

  Crack down on the entire supply chain of counterfeit alcohol production and sales.

  Counterfeit and substandard baijiu not only endanger consumers’ health but also disrupt market order.

  The presiding judge told reporters that, in such cases, sentencing is based on the actual sales price. Once the case reaches the court, defendants are typically convicted of crimes such as producing and selling substandard goods or counterfeiting registered trademarks; however, gathering evidence is often difficult, and in some instances, no prison sentence can be imposed. Industry insiders recommend further strengthening oversight of e‑commerce platforms, enhancing regulatory effectiveness through interagency coordination, and cracking down on the entire supply chain involved in the production and sale of counterfeit liquor.

  First, strengthen regulatory oversight of secondhand e‑commerce platforms and urge liquor producers to enhance their use of technology for counterfeit prevention. Detecting counterfeit or substandard baijiu remains challenging; industry insiders recommend engraving unique codes on bottles, smashing empty bottles to tighten source‑level controls, and further reinforcing the joint liability of third‑party sellers on e‑commerce platforms. They also advocate tightening the review and management of product‑listing information, mandating more mandatory fields in listings, and expanding the platform’s database of prohibited keywords. Additionally, bolster consumer‑focused public interest litigation and fully leverage the punitive damages mechanism to compel liquor producers to upgrade their anti‑counterfeiting technologies.

  Secondly, strengthen big‑data monitoring and carry out targeted inspections and rectification. The production and sale of counterfeit alcohol often span multiple regions, and industry insiders have called for enhanced cross‑regional data sharing to address the growing prevalence of such cases and crack down on the rampant “fake‑brand” problem. At the same time, step up public awareness campaigns to encourage consumers to purchase alcohol through official channels and retain proof of purchase.

  In addition, multiple departments are working in concert to enhance regulatory effectiveness and crack down on the production and sale of counterfeit alcohol across the entire supply chain. Grassroots officials suggest that, while maintaining a strong enforcement stance, law‑enforcement agencies should further strengthen collaborative efforts among public security, market regulation, health, and migrant‑population management authorities, as well as village‑level grassroots organizations, to foster community‑based prevention and joint governance. A multi‑agency, end‑to‑end crackdown on the manufacture and distribution of counterfeit products is essential. At the same time, mechanisms for preventing and combating counterfeiting must be improved, a comprehensive accountability framework spanning administrative, civil, and criminal liabilities should be refined, and the order of liquor circulation standardized to safeguard consumers’ legitimate rights and interests. (Reporters: Zhao Jiulong and Chen Shengwei; Contributing reporters: Feng Kexin)

[Editor-in-charge: Gu Yue]

Source: Economic Information Daily