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Security Labelling Solutions 57 Labels + Packaging Security Labelling Innovations Guide Europe Solutions 2021 Solutions for better brand With more people shopping online and more counterfeit goods being trafficked through protection in an increasingly e-commerce channels, brand protection is counterfeit world more important than ever. The global economic value of counterfeiting and piracy is expected to reach US$ 2.3 trillion by 2022.1 Adopting the right security labeling solutions is essential for brands that want to protect their business, their customers and their revenue. Counterfeiting affects virtually all market segments, including pharmaceutical, health, automotive, electronics, food & beverage, and beauty, among many others. Counterfeit products are not subject to the same quality control or governmental regulations as legitimate products, putting the health and safety of consumers at risk along with brand reputations. For converters specializing in the production of security labels, the opportunity has never been greater—and Avery Dennison can help. Our comprehensive range of solutions delivers the latest innovations for protecting products and brands. From security features that are visible to the eye (overt) to those that are invisible (forensic), our product range offers the flexibility to build customised products with multiple security layers. In addition, our wide selection of transfer tapes, gum twins, and uncoated security face materials can help keep you ahead of counterfeiters by building and customizing label constructions on site while providing your customers with secure, fast, service. With our global scale, expert technical teams, and record of innovation, we’re here to support you in making security label solutions a thriving line of business. Contents 2 Security label market trends 6 Our products 8 Our VOID range 14 Custom VOID materials 16 Destructible facestocks 20 Tamper-evident label materials 22 Holographic label materials 24 Choosing the right adhesive 26 Custom label contructions 28 Smart security 2 3 Security label market trends The dark art of counterfeiting takes many forms: product imitations, diversion of genuine products, tampering and reuse of original packages, and even volume substitution and dilution of consumables. Few industries are immune. Here’s how counterfeiting is affecting some of the largest segments of the world economy. Pharmaceutical Drug counterfeiting is a major global problem. The manipulation or substitution Electronics The market for electronic goods is growing at a rapid pace, and protecting products of medications compromises patient safety, and can cost drug companies sales, from counterfeiting is a particular challenge. Counterfeiters are not only trafficking in revenue, and their brand image. final products such as laptops and smartphones, but also their components. Security labels play an important role in detecting electronics fraud and ensuring that end- Interpol, Europol and national medicines agencies seize many falsified medicines users receive authentic, high-quality products. and close hundreds of illegal websites every year. A report published by Europol’s Intellectual Property Office (EUIPO) in 2019 estimates that counterfeit medicines cost the EU pharmaceutical sector more than 10 billion euros ($11.3 bn) annually 2 in lost revenue. Regulatory Tax stamps are used by governments in over 50 countries to protect tax revenue compliance and regulate the quality and safety of goods such as cigarettes, spirits and premium To harmonise safety features across the European Union, the EU implemented drinks. In some countries, a tax stamp on such goods is mandatory. The World Health Falsified Medicine Directive 2011/62/EU, which, among other mandates, requires Organisation has estimated that about 25% of the alcohol consumed worldwide is those in the prescription-medicine supply chain to ensure product identification considered to be unrecorded counterfeited or illegal alcohol. and verify whether outer packaging has been tampered with. For converters and packagers, this represents a significant opportunity to supply secure packaging. E-commerce Revenue in e-commerce in the EU is expected to grow by more than 7% between & logistic 2019 and 2024.4 For customers as well as e-commerce businesses, counterfeiting Automotive The automotive industry is not only subject to counterfeiting of fake auto parts, but is one of the biggest threats. Our security label range can help businesses protect also to car trafficking and tampering with vehicles’ authentication information to hide their packaging from tampering and opening and secure the authenticity of the their original identities. These practices are not only illegal but can also be dangerous goods they ship. Some online retailers, including Amazon, require all hygienic and for anyone driving or riding in a vehicle with fake parts, because counterfeited cars topical goods to be protected with a security seal applied directly at the product’s lack supplier homologations and quality control. Counterfeit parts also cost the manufacturing site, which helps prevent used products that have been returned global auto industry an estimated US $20 billion annually.3 from being sold again. Our tamper evident security solutions comply with Amazon’s security seal regulations. LPM/EU/2021/June 4 Security label market trends Agrochemicals Non-regulated and counterfeited pesticides result in over 200,000 deaths yearly and are consumed by over 3 million people annually, mainly in developing countries.5 Security labels help prevent from agrochemical tampering and counterfeiting, protecting consumers and brand owners alike. Luxury goods High-end clothing, perfumes and other goods are valued not only for their quality, but also for their brand image. Unauthorised replicas of luxury goods are sold in large volumes, particularly through online channels and even more so with the growing trend of online shopping. Adopting the right security measures to help customers distinguish authentic products from fake ones is now crucial for brand owners fighting potential damage to their reputations from lower-quality, illegal goods. Cosmetics Cosmetics sold in Europe are subject to strict testing and regulation. The direct application of these products on the body requires that they be safe for consumers to use. Counterfeited cosmetic products are subject to no regulations and often contain dangerous and poisonous adulterants. Security labels can help merchants and consumers detect counterfeit products and can also help protect authentic items from tampering along the value chain. Food and beverage Ready meal and grocery delivery has increased by over 75% during the Covid-19 pandemic. These delivered products can be a source of cross contamination if not responsibly handled. Security labels in food packaging offer visible proof of no tampering from preparation to delivery. 1 https://iccwbo.org/media-wall/news-speeches/global-impacts-counterfeiting-piracy-reach-us4-2- trillion-2022/ 2 https://www.securingindustry.com/press-releases/pharmas-urged-by-trade-body-to-review-anti- counterfeiting-plans-ahead-of-no-brexit-deal-/s135/a12489/#.X6vz5MjYqUk 3 https://veridocglobal.medium.com/eliminating-counterfeit-auto-parts-89c50533cba5 4 https://ecommercedb.com/en/blogPost/2467/ecommerce-revenue-forecast-china-us-europe 5 https://www.washingtonpost.com/world/the_americas/in-agricultural-giant-brazil-a-new-and-growing- hazard-the-illegal-trade-inpesticides/2021/02/09/2c0b2f2e-30b3-11ea-a053-dc6d944ba776_story.html 6 Security Labelling Solutions 57 Our products A range of protective features Often, the right security label depends on a specific context—the product, the supply chain, to choose from the package type, and other factors. We can help you build a multi-layered security solution that’s just right for your customers’ needs. Our security solutions cover what the eye can see—and well beyond. We offer both visible and invisible solutions, as well as digital solutions based on Radio-Frequency Identification (RFID) Overt security features - Visible Covert security features - Hidden and Near Field Communication (NFC), and more. Overt security features are designed to be evident to Covert security features are invisible to the eye and require everyone, but difficult to duplicate. They not only discourage special equipment to be detected. These features allow counterfeiters, but also allow end customers to easily detect authentic products to be distinguished from fake ones, and tampering or identify genuine products. Some examples: used products to be distinguished from new, even after the label has been removed. Examples of covert features include · VOID materials leave a visible message upon removal special tracking fibers and adhesive traces or custom prints of the label, and the label itself changes once removed, that are detectable under ultraviolet light. preventing unauthorized re-use. Forensics security features - Invisible · Destructible face material offers reliable signs of Forensic security features are meant to be completely ampering on packaging, and ensures labels can’t be invisible to the naked eye and require specific equipment to used again after removal. be detected, making them especially challenging to duplicate. One example: an RFID tag embedded in a label or product that · Holography and optically variable devices (OVDs) integrated gives the item a unique digital i.d. in labels are instantly recognisable and difficult to copy. Multiple visual layers can be added
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