Containing counterfeits: Elfbar backs police fake vape crackdown as South Africa loses billions

19 Aug 2024 --- Counterfeit vapes have been rampant in South Africa for some time, and Elfbar, among other major vaping product brands, has fallen victim to this. Around 3,600 fake and substandard vapes were seized in a recent operation led by national enforcement authorities in tandem with the brand.

A raid operation in July, conducted under a search warrant, took place in Johannesburg and Cape Town. In both cities, Elfbar issued warning letters to over 15 stores, of which 13 have signed a commitment document to cease sales of infringing products.

These stores also surrendered a total of 1,100 fake Elfbar vapes, which will be destroyed successively in a scheduled process.

We sit down with Lauren Huang, Elfbar’s general manager for the Middle East and Africa, to discuss the crucial role of packaging in anti-counterfeiting measures and the importance of cross-stakeholder collaboration in tackling the issue.

“Before the latest anti-counterfeit operation, our local business partner conducted a field research of 129 retail stores across Western Cape and Gauteng, revealing that 56 stores had counterfeit products on their shelves, with some even knowingly mixing counterfeits with authentic ones,” Huang tells Packaging Insights.

“This left us with an initial result that 43% of overall retail channels were involved in selling and trading counterfeits,” she adds.

Elfbar prints unique batch numbers or codes on each package to help spot counterfeits (Image credit: Elfbar).Counterfeit vapes are estimated to cost the South African economy billions of rands annually, on things such as medical treatment from vaping unknown substances and accidents caused by counterfeit vapes, according to Huang.

“And this is an irony that vapes, from day one, have been invented as an alternative to cigarettes and have proven effective in reducing health risks.”

“When considering the associated loss of tax revenue, the real costs of these counterfeits could be much higher, and the issue seems to be getting worse.”

Packaging to the rescue?

Packaging plays a critical role in avoiding counterfeiting.

Huang says that packaging serves as an interface for carrying all the product information when adult users purchase the product and that it includes various authentication features.

“Take our Elfbar products as an example — QR codes, barcodes, tamper-evident seals and watermarks consist of a whole set of add-on designs for adult users to verify the products’ authenticity.”

By offering a tamper-evident design, packaging shows clear signs of tampering can discourage counterfeiters and alert consumers of possible fraud. Tamper-evident seals or labels make it evident if a product has been opened or altered.

Meanwhile, unique batch numbers or codes printed on each package help spot counterfeits. Also, using high-quality, special materials for packaging can make it more difficult to replicate. This includes using complex printing techniques, special printing inks and durable materials.

In addition, packaging can also serve as an educational tool, providing consumers with information on how to verify the authenticity of a product.

Huang adds that supply chain security can also be guaranteed through packaging. “Packaging helps protect products during transportation and storage, therefore offering a better user experience.”

Seizing millions of counterfeits

Elfbar aims to contain the spread of illicit vapes by working with regulators worldwide, advocating for robust enforcement, bringing trademark infringements to court, shutting down businesses in the counterfeit-manufacturing chain, scanning and spotting fake products in retail channels, engaging retail groups and launching public awareness campaigns.

“We are calling for a wide involvement of all relevant stakeholders in this anti-counterfeit campaign,” asserts Huang.Counterfeit vapes are estimated to cost the South African economy billions of rands annually (Image credit: Elfbar).

“Elfbar has implemented an extensive strategy proactively involving stakeholders across various sectors, including regulators, trade associations, wholesalers, retailers, media outlets and consumer groups, to jointly fight against the illicit vape proliferation.”

“On the global level, as of June 2024, 229 factories, warehouses, traders and logistics service providers involved in counterfeit trade had been shut down as part of the anti-counterfeit enforcement. Several millions and counting of counterfeit Elfbar have been seized globally,” she adds.

Verifying authenticity

After scratching off the coating on the Elfbar packaging, adult users can scan the verification code printed on every single package, which is considered the most efficient and reliable way to verify the authenticity, explains Huang.

“When scanning, adult users will be directed to Elfbar’s official website in the verification process, where they can check the product authenticity with an 18-digit code.”

“The current authentication with the code covered by coating has undergone an evolution from when we had no authentication method available to when we had the code uncovered, leaving room for counterfeits, till we now have the secure coating on the code, further narrowing down the likelihood of counterfeits. “

Even though Elfbar consistently upgrades its authentication methods, counterfeits cannot be completely eradicated, notes Huang. “We are putting more effort into safeguarding our product authentication techniques.”

“Meanwhile, adult users can identify counterfeits by paying attention to various details on product packaging, including brand name, batch number’s printing trace, manufacturer’s information and overall packaging design.”

Elfbar also calls for consumers to always buy vaping products from legitimate retail channels.

By Natalie Schwertheim

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