China-focused water producer Tianmei Beverage Group will use Blockchain technology to allow customers to track its “high-end” bottled drinking water back to its source.

Tianmei (ASX:TB8) markets a number of bottled water products in China – including “expectant mothers drinking water” and “infant water”.

While the products already use QR codes, Tianmei has hired a blockchain consultant to design a platform allowing customers access to a range of extra data.

“Tianmei will be able to digitally connect data from its water source, processing and bottling batches, storage facilities, inventories, logistics and transportation, and sales and administration,” the company told investors.

TB8 share price movements over the past three months.
Tianmei (ASX:TB8) shares over the past three months.

The shares gained 8 per cent to 13c at the open on Monday, but settled to 12c by 12.30 pm AEDT.

The technology development is estimated to be complete by the end of the year, and will allow Tianmei to trace any potential contamination.

“Such ability will enable Tianmei to react swiftly to contain, isolate, and recall affected products effectively, instead of for a potentially costly company or supply chain wide shut down.”

But the benefits of blockchain go even further. Tianmei told the market it would help minimise paperwork errors and logistics.

Tianmei’s water products are sold through a network of 519 retail outlets in China. Its ‘infant water’ has experienced some of the greatest growth in the last quarter, with 84,936 cartons sold.