Setting the Standard: How Liv-ex Leads the Industry in Wine Authentication Supported by Michael Egan
Jess Dunn, Authentication Manager, talks to us about authentication standards at Li-ex.
Liv-ex has set the standard for independence, transparency and trust in the secondary fine wine market. Jess Dunn, Authentication Manager at Liv-ex, shares how authentication and verification are central to this mission. She talks us through her role and how Liv-ex works with world-renowned expert Michael Egan.
Tell us about your role as Authentication Manager at Liv-ex, what does this entail?
I ensure that stock traded on the Liv-ex Exchange is exactly what it was listed as, and is in the condition specified in the contract. I act as the single point of contact for all authentication and verification matters, both internally and externally.
This means liaising with members, agents, experts and producers whenever we uncover suspect bottles. It also involves continuously growing our knowledge base and training our teams to stay ahead of counterfeit risks.
I work very closely with our member-facing and wine handling teams, namely the Liv-ex Brokers that help members to list wine, and the warehouse teams, who carefully check wine as it moves through our warehouses between seller and buyer.
We have an extensive knowledge library that covers anti-counterfeiting measures such as microprint, holograms and Prooftags, as well as common signs of counterfeiting. This resource helps our teams authenticate wines confidently and consistently.
You recently visited Liv-ex’s Bordeaux warehouse with Michael Egan, what did the trip involve?
We engage Michael Egan, one of the world’s leading wine authentication experts, to conduct regular independent audits across our three warehouses. He also provides reports when we encounter bottles that require specialist verification beyond our internal resources.
Michael worked at Sotheby’s for 23 years where he spent most of his time looking at private and commercial cellars. Many of the private cellars he inspected had vintages ranging over many decades, from 50 to 60 years, with some wines dating back to the 19th Century. During his time at Sotheby’s, he observed what bottles looked like in natural storage conditions, how the labels and capsules reacted over the years, and developed a sense of what an old bottle should really look like. Michael also acted as an expert witness in the cases of USA v Kurniawan and Koch v Greenberg.
Michael and I went to the Liv-ex Bordeaux warehouse in November to carry out an audit. Several cases were selected for review, based on their value, provenance and risk level. At Liv-ex we have an algorithm that determines risk level, continuously fed with the latest data and insight to improve risk detection for wine bought and sold through the Liv-ex Exchange.
During the audit Michael carefully inspected each bottle in the case. The age of the bottle determines what he is looking for; from the patina of age on an original wooden case or label, to specific anti-counterfeiting measures applied by producers. He uses specialist equipment, including a digital microscope which allows him to assess the minute detail. He then provides a report with his findings, and we update our records to highlight the cases he has inspected.
Why is this type of exercise important?
We conduct regular audits internally, but having an independent third-party supporting with an annual review is essential for evidencing the robustness of our verification and authentication processes. The insight and knowledge Michael shares are invaluable in improving our due diligence practices and help us to maintain our position as industry leaders in this space.
The investment of time and resources that Liv-ex puts into reducing risk in the secondary market creates peace of mind for our members. Buyers can be confident that the wine they receive will be what they paid for. While sellers know that their wine is verified, reducing disputes and protecting reputation.
Outside independent third-party audits, what is Liv-ex’s approach to authentication on a day-to-day basis?
Due diligence starts before a single bottle is listed. Every prospective member undergoes a thorough vetting process, including review of trade references and approval by our Exchange Committee. This ensures that only reputable businesses trade on Liv-ex.
When it comes to listing wines for sale on Liv-ex, our employees are expertly trained to ask the right questions and dig into the facts to help flag suspicious products. This starts with our Brokers, who frequently ask for evidence of provenance when listing high-risk cases or bottles on the Exchange. For wines of a certain vintage and value, photographs may be requested as a pre-trade check.
Liv-ex warehouse employees undergo regular authentication training to ensure they feel confident identifying issues with stock. As mentioned earlier, we have developed a bespoke algorithm to quantify the fraud risk surrounding a wine so the appropriate checks can be conducted.
When thorough checks are required, we take the bottles out of cases to photograph them. We use ultraviolet torches to check the labels as well as checking them for other producer specific anticounterfeiting measures such as microprint, holograms and QR codes. We inspect capsules, including checking any Prooftags. And we also check the cork, sediment and glass embossing or laser etching.
Setting the Standard in the Secondary Fine Wine Market
Liv-ex’s rigorous due diligence is about more than compliance, it’s about creating confidence in the secondary market. For fine wine businesses, this means reduced risk, smoother transactions and stronger trust with clients.
