History of Adelphi Distillery

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1 Manufacture and Supply Chain Security, Transparency and Authenticity using Blockchain Technology

2 Alex Bruce Managing Director Adelphi Distillery Limited 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

3 History of Adelphi Distillery T 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 A 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, 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, c u r r e n t

4 The Ardnamurchan Distillery, Glenbeg Ethical distilling 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 staining 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

5 Relating to the consumer Scotland s larder land of food and drink Telling the Scotch Whisky story Adding substantial additional text behind the label Points of difference Quenching the younger demographic s thirst for knowledge Adopting accessible technology

6 The Technology Adelphi has teamed up with Arc -net, a technology company based in Belfast that specialises in the use of blockchain Blockchain, more commonly associated with crypto currencies, stores event -based data and connects the product journey from production to consumption Once uploaded and bonded to the chain, the data is incorruptible and can provide security 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

7 Adelphi s use of blockchain A l l aspects o f s u p p l y and manufa c t u re a re bonded to the b l o c 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 of this data i s required by HMRC as part of the manufa c t u re o f S cotc h W h i s k y, so very litt l e additional d ata capture is re q u i re d

8 Building the Stock The history of each batch of spirit is uploaded to the blockchain Each cask that then receives the spirit for maturation receives an individual code The life of the cask and its contents are then followed, and any actions are also uploaded to the blockchain : 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 date s M a t u ration ware 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

9 Securing the Distribution Chain GPS enabled scanning devices will confirm successful arrival of each bottle in each market Each bottle is assigned an individual encrypted number Manufacturer is able to ascertain that the bottle has been scanned in the market that it was destined for Manufacturer is therefore able to monitor and prevent parallel trading.

10 Attracting and Interacting Ea c h b ott l e has a QR code on the back label T h e consumer can enter t h e re cord of event s store d in Adelphi s blockc h a i n by scanning t h e code and agreeing to terms T h e consumer will then see t h e fully t ra n s p a re nt j o u r n ey* from field to bott l e a n d b e able to send fe e d b a c k b a c k to Adelphi * 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

11 Autenticating the Bottle Once scanned and registered, the consumer takes possession of an individual, digital ownership certificate This certificate remains with the bottle for life and can be transferred if the bottle is sold on This authentication provides added peace of mind to consumers buying from auction sites or 3 rd party vendors Further research is being conducted to include an RFID chip that will detect when the bottle is open and prevent fraudulent refilling and on -selling

12 Building a foundation on the Blockchain connecting value through a single platform Item level validation Capture operational and production data Anti counterfeit and grey market protection Digital Item serialisation Data collection model auditing and digitisation Validate supply chain members Identify the consumer SCM control and asset tracking Protect the brand Direct consumer marketing

13 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.

14 Questions T h a n k you for listening T h e use of Blockc h a i n fo r A d e l p h i D i stillery L i mited and T h e A rd n a murc h a n D i stillery i n conjunction with Arc - n et

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