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The code of trust: how the cement market is preparing for the introduction of mandatory labeling

Labeling on cement packaging helps in the fight against counterfeiting
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Photo: KONTI press service
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On September 1, 2025, Russia introduced mandatory labeling of building materials. From this date, all participants in the turnover of building materials are required to register in the Honest Sign system. The need for the step taken by the government is due to the scale of counterfeiting in the industry. According to expert estimates, every fourth kilogram of cement in the country is fake, and in the category of building mixes, the proportion of counterfeit products reaches 30-40%. How market participants adapt to new requirements is described in the Izvestia article.

The effect of the reform

The production and sale of illegal products was provoked by the abolition of state control over the turnover of building materials as part of the "regulatory guillotine" in 2021. Two years after the business relief, the cumulative damage from illegal trafficking, according to Daria Martynkina, executive director of Soyuzcement, was already 90.7 billion rubles.

Taking into account the scale of the problem that arose after the administrative reform, the authorities decided to conduct an experiment to restore state control. It will last until September 2026 and provides for stricter inspections of building materials. At the same time, mandatory labeling is being introduced for the most vulnerable product categories. Since October, it has been introduced for cement, gypsum, dry building mixes, since December — for mounting foam, putty, sealants, mastics, etc. All participants in the turnover of goods will have to register in the Honest Sign system, operated by the Center for the Development of Advanced Technologies (CRPT). The system will use a unique DataMatrix code to track the entire product path from production to sales at the checkout.

"Labeling is not just a code on a package," says Varvara Mikhailova, head of the Department of Consumer Goods at the CRPT. "This is one of the key tools in the fight against counterfeiting, allowing us to verify the authenticity and quality of goods."

Who will apply the "Honest Mark"

The technology of applying codes depends on the packaging material and the specifics of production processes. This can be labeling, laser application, printing with a thermal transfer or piezo-jet printer. In any case, the purchase of appropriate equipment and staff training is required. Thus, manufacturers of goods responsible for labeling were faced with a choice: to implement it at their own facilities or to use a printing method. In the second case, the code is applied to the packaging even at the stage of its production, which, in fact, saves the manufacturer of building materials from changing its technological cycles and additional burden on personnel.

The Barnaul-based KONTI company, specializing in the production of polypropylene bags, became the first company to successfully complete the full cycle of testing for applying the DataMatrix code to cement packaging. The company is officially registered as a service provider in the Honest Sign system and is already offering the market a ready-made labeling solution.

According to industry representatives, such a solution may be the most relevant in relation to cement. The product belongs to heavy construction materials, which requires a specific approach to labeling packaged products in workshops. In addition, the production environment in most cases is highly dusty, which entails the need to clean the bags before applying the codes. The typographic method, in which labeling is integrated at the packaging release stage, makes it possible to optimize operating costs.

"The technology of applying the "Honest Mark" involves not only dust removal of bags, but also positive temperatures, whereas in the filling shops of cement manufacturers there is often no heating. This is also an argument in favor of transferring labeling to the side of enterprises that produce burlap bags," says Vasily Frolov, head of box bags and large—capacity containers at KONTI.

In general, according to him, the demand for the printing method is influenced by economic and personnel reasons: "If small producers can find a budget option for labeling (for example, they will purchase labels), then large enterprises need equipment for each line."

In the context of the task of reducing the volume of counterfeiting, applying the code specifically to polypropylene packaging seems to be a double safety barrier. This is due to the fact that the production of such packaging in artisanal conditions is almost impossible. "Firstly, expensive equipment is needed. It is economically impractical to purchase it specifically for counterfeiting. Secondly, the technology is too complicated — the production of thread, then fabric, and its subsequent lamination," explains Frolov.

The technology and the material used provide polypropylene bags not only with a high degree of protection against counterfeiting, but also with a number of important properties in conditions of stricter quality control of cement and building mixes. These include increased durability (it can withstand a fall from a height of several meters in 99.9% of cases) and guaranteed safety of consumer characteristics of the product.

Contribution to the final price

The CRPT believes that there will be no increase in prices for building materials due to mandatory labeling. According to Varvara Mikhailova, manufacturers have access to various free tools developed by CRPT, as well as technical and informational support from the operator.

As for the equipment, piezo printers are used to mark polypropylene bags. The printing houses' initial costs for them are offset by subsequent minor operating costs. In turn, labeling by means of labels on the manufacturers' side implies lower initial investments, but requires regular additional investments in ribbons (coloring tapes) and stickers.

Mikhailova summarizes that the economic effect of the innovation exceeds the initial costs: "As in other industries, labeling will effectively combat illicit trafficking in products, protect legitimate businesses and the brand of a bona fide manufacturer."

Labeling in Russia covers 31 product categories, and experiments are being conducted in 9. According to the HSE research, confirmed by market participants, in 5 years the mechanism has reduced the share of illegal product turnover in the country from 25.9% to 8.9%. In particular, the share of counterfeit products in perfumes decreased by 81.8%, in water — by 60%, in tobacco products — by 56%, in clothing and textiles — by 30.6%. The economic effect of labeling is 1.2 trillion rubles in the form of tax and other budget revenues. The additional income of a legal business is 687 billion rubles.

Переведено сервисом «Яндекс Переводчик»

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