The Hidden Cost of Illicit Alcohol
- Feb 15
- 4 min read
If I was to ask you to think about intellectual property crimes or counterfeited goods, your mind would probably go towards big clothing brands, handbags or maybe cosmetic items. But what if I was to tell you that nothing escapes the criminals, and we are seeing a sharp rise in illegal activity around the sale of illicit alcohol?
Illicit alcohol isn’t just a regulatory headache for Trading Standards Officers, it’s a public health risk, a criminal enterprise and a drain on legitimate trade. From counterfeit spirits and wines to fraudulent wine investments, the scope of alcohol-related crime is vast and evolving. This week, we’re diving into the murky world of illicit alcohol and spotlighting the collaborative efforts that are helping Trading Standards officers stay ahead of the curve.
Illicit alcohol in the news You may have seen that the subject of illicit alcohol has been in the news recently. Following the very sad deaths of several tourists in Brazil, the UK government has highlighted the issue of counterfeit alcohol and implemented a foreign travel warning after a surge in cases of methanol poisoning. Methanol is a toxic substance which often used in industrial applications, and can cause serious health effects such as blindness, organ failure and even death when ingested.
But what are the issues closer to home? I was shocked to learn from an article by Sarah Neish in The Drinks Business that the UK is being inundated with counterfeit drinks, particularly fake bottles of the popular Australian wine Yellow Tail, which is widely stocked in supermarkets and independent retailers. The article details how an Asian organised crime syndicate has teamed up with a European wine gang, investing over £500,000 in high-spec digital printing equipment to replicate bottles and labels with near-perfect accuracy. These fakes are so sophisticated that even seasoned distributors struggle to distinguish them from the real thing. In response, Yellow Tail has redesigned its label for the first time in 25 years, adding new visual elements and flavour descriptions to make duplication more difficult.
Wine Investment Fraud But alcohol-related crime isn’t limited to poisonings and counterfeit bottles, it extends to complex financial scams that exploit consumer trust. In a landmark case lead by Hertfordshire County Council’s Trading Standards team and supported by the National Trading Standards Regional Investigations Team, three individuals acting under the company name of Imperial Wine & Spirits Merchant Ltd, (previously Imperial Wines of London Ltd) were convicted for orchestrating a wine investment fraud. The scheme targeted vulnerable investors, promising high returns on fine wines that were never purchased or grossly misrepresented. Victims were left out of pocket and the fraudsters lived lavishly off the proceeds with an estimated £37 million going through the company in the 10 years they were trading.
This case underscores the importance of vigilance, cross-agency collaboration and robust intelligence sharing.
Your role as Trading Standards Officers So as inspiring Trading Standards Officers, what can you do?Well, thankfully we aren’t alone in this fight. The Illicit and Counterfeit Alcohol Working Group is a vital network that brings together law enforcement agencies, regulatory professionals and industry experts to aid sharing intelligence, identify emerging trends and offer practical advice to those tackling illicit alcohol on the front lines.
The group are actively inviting new members and encourages anyone in a law enforcement or regulatory role to join. It’s a great opportunity to deepen your understanding of illicit alcohol issues and to build valuable connections in this rapidly evolving field. Meetings are held quarterly online, with one in-person meeting held annually. Additionally, the group utilities Knowledge Hub, where they have a page dedicated to knowledge sharing, as well as being a shared space for documents and reports to be stored for your use.
Charles Cain, Intellectual Property Crime Coordinator at the Intellectual Property Office (IPO) and Mark Dawson, Wine Standards Inspection Team Leader at the Food Standards Agency (FSA) co-chair the group, who meet quarterly.
Charles Cain explains:
“The Illicit and Counterfeit Alcohol Working Group welcomes those in a Law Enforcement and Regulatory role who have a professional interest in this topic. The group is a network of individuals from many different agencies who can share information, advice and trends with each other on issues concerning illicit or counterfeit alcohol.The group does not handle personal data or intelligence reports directly, those channels are already well-established, but it plays a crucial role in connecting the right people so that sensitive information can be routed appropriately and securely.The group has strong links with external stakeholders such as The Wines and Spirits Trade Association and is well placed to ensure that members are connected.We meet online every 3 months and aim to hold an in-person event annually open to all Law Enforcement. Additionally, we have a shared space on Knowledge Hub, which is used as a repository for relevant documents/reports for members to access.”
This group is a brilliant example of how multi-agency cooperation can empower officers and protect consumers.
Whether you’re a trainee or a seasoned officer, here’s how you can engage:
Join the Illicit and Counterfeit Alcohol Working Group Knowledge Hub group to stay informed.
Attend the quarterly meetings to hear directly from experts and our peers.
Share intelligence—even small pieces of local information can help build a national picture through the usual channels.
Promote awareness in your community about the dangers of illicit alcohol, especially counterfeit spirits and misleading investment schemes.
Final Thoughts Illicit alcohol isn’t just a Trading Standards issue, it’s a public safety concern. Cases like the sad deaths in Brazil and the £37m wine fraud remind us that criminals are constantly innovating, and so must we. By working together, sharing knowledge and staying alert, we can protect consumers and uphold the integrity of the alcohol trade.
Have you encountered illicit alcohol in your area? What tools or partnerships have helped you tackle it? I believe that we are going to see a continued rise in this area of work, so I urge you to join the Illicit and Counterfeit Working Group and sign up to the Knowledge Hub Page.
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