High end cognac brand Hennessy has partnered with blockchain platform BlockBar for the sale of Hennessy 8, a limited edition craft blend that has been five years in the making and celebrates Hennessy’s 250 years of history. Through the partnership, consumers will be able to buy a non-fungible token (NFT) equivalent for two of the cognac bottles and redeem it for the physical product or trade it on a secondary marketplace.
Hennessy, part of the LVMH group, has to deal with the same challenge as any luxury name whose value lies in the brand: counterfeiting. With bottles selling for over $1000, it is understandable that the cognac producer values protecting the authenticity of its brand.
The cognac is produced in France, and over 99% is sold in exports. With so many middlemen, supply chains and secondary markets involved, the opportunities for fraud increase, and keeping control over who has the right to sell the product becomes more challenging.
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