To many companies counterfeiting is a huge problem. Substandard products sold under strong brand names have a large negative impact on both earnings and brand image, and for some products it even puts peoples’ lives at risk. E.g. in the pharmaceutical industry, where WHO estimates that more than one million people die each year from counterfeit medicines. 700,000 people in Africa die each year as victims of counterfeit malaria or tuberculosis drugs.
These horrific, yet wholly preventable, deaths are a forceful reminder of the necessity to combat counterfeit production. Copied food products are responsible for negative health effects and deaths from contamination, but other effects include pains for European business with respect to intellectual property loss, loss of jobs (more than 200,000 in the US and Europe), manufacturing rework costs, expenses for warranties and returns, etc. An impact of just 1% implies that 2,000 jobs could be created in Europe and the US, with additional hidden values concerning consumer safety.
Executive summary: The market study illustrates a clear and present danger from counterfeiters. Engagement with key pharmaceutical companies, and qualitative feedback, showed overwhelming interest in the sample products. However, current business models and sales strategies must be adjusted from standard flexible packaging approaches to create proper levels of value. A 2nd stage project must establish a business approach where the business models currently employed by the security sticker business segment is leveraged into the flexible packaging business segment. Customer engagement methods must be adjusted accordingly.
The ACfoil production platform has freedom to operate. The platform today depends upon subcontractors for creating large tools, however, equipment investment will change this.
ACfoil reached all technical goals. Two different subcontractors for the same service were used for demo production of holographic polymer film – this eliminates the last single supplier dependencies. Stunning demonstration foil is now available for pitching to possible customer and investors. Further technical development is necessary, to transfer the pilot plant demonstrations to full-scale production facilities.
Preliminary presentations to selected large-name pharmaceutical customers show overwhelming interest, however, a comprehensive implementation and marketing strategy to meet the challenging demands of these players must be developed.
