Croatian technological intelligence and specialist knowledge have once again proven themselves in the demanding European market, positioning domestic companies as key players in a strategic project of great importance for the security and fiscal stability of the European Union. Two leading Croatian companies, AKD and ENSESO, in a strategic alliance with an Irish partner, the company Smurfit Westrock Security Concepts (SWSC), have taken on the responsible role of implementing a comprehensive system for tracking and tracing tobacco products in the Republic of Ireland. This significant business venture involves the issuance of as many as 160 million unique identifiers on an annual basis, thereby ensuring full compliance with the rigorous regulation of the European Union, better known as the EU TPD (Tobacco Products Directive).

This project is not only a commercial success but also a confirmation that Croatia possesses the technology and expertise to solve some of the most complex challenges faced by EU members, primarily in the fight against the black market and the protection of public health. The implementation of this system in Ireland represents the third major European reference for the Croatian consortium, which has already proven its capabilities by establishing complete solutions in the Republic of Croatia and the Republic of Slovenia.

A European bulwark against the tobacco black market

Behind this technologically advanced project lies the Tobacco Products Directive (EU TPD), the European Union's umbrella legislative framework designed with a dual objective: to reduce smoking and protect citizens from the harmful consequences of tobacco consumption, and to combat illicit trade, which causes annual losses of several billion euros to the budgets of member states. The illicit trade in tobacco products is a serious transnational problem that not only undermines fiscal revenues but also threatens public health policies by making cheaper and unregulated products more accessible, especially to the younger population. It is estimated that EU member states lose up to 10 billion euros annually in uncollected taxes and excise duties due to the black market.

The core of the European strategy in combating this phenomenon is precisely the Track & Trace system. This system operates on the principle of assigning a unique identification code to each individual package of tobacco products (a pack of cigarettes, a packet of rolling tobacco, etc.). This code is then scanned and recorded at every key point in the supply chain – from the production line, through the distributor's warehouse, to the delivery to the first retail outlet. All collected data on the movement of products are stored in a centralized and secure database, allowing competent authorities, such as customs and tax administrations, to check the path and authenticity of any product on the market at any time. A key element of the Directive is the requirement that issuers of unique identifiers (ID Issuers) must be completely independent of the tobacco industry to ensure the impartiality and integrity of the entire system.

Croatian 'know-how' as an export asset

The role of AKD and the company ENSESO in this European regulatory mosaic far exceeds that of an ordinary supplier. AKD, as a company owned by the Republic of Croatia with many years of experience in the production of high-security national documents such as identity cards, passports, and driving licenses, possesses a unique combination of expertise in the field of physical and digital security. It was precisely this expertise that was crucial when AKD was appointed the official issuer of unique identifiers for the Republic of Croatia back in June 2018.

Together with the partner company ENSESO, which specializes in the development of complex software solutions, they have successfully implemented and maintained the national system, and subsequently the entire solution for the Republic of Slovenia. The third major implementation, the one in Ireland, which was completed in May 2025 in collaboration with the local partner SWSC, is the crown of their work to date. "This project confirms that Croatian companies have once again been recognized as capable and reliable partners in the tobacco product traceability sector among EU member states. The partnership with our Irish colleagues reflects our ability to successfully compete in the competitive European market, using our knowledge and competitive advantages to implement the most advanced technological systems," pointed out Jure Sertić, CEO of AKD. The strength and reliability of their system are best illustrated by the fact that AKD and ENSESO have to date jointly issued more than five billion unique identifiers for tracking tobacco products, thereby firmly positioning themselves as leaders in this highly specialized technological segment.

Complex technological architecture at the heart of the system

The project to establish the system in Ireland involves the creation and management of an extremely secure, scalable, and fully compliant ID issuer platform. This platform is designed to generate, issue, and manage not only unique identifiers for products but also identification codes for all economic operators, their facilities (factories, warehouses), and even the packaging machines involved in the supply chain. The system established by the Croatian experts is used by all manufacturers, importers, and distributors of tobacco products operating on the Irish market.

AKD's role in this complex project is multi-layered. The company has taken responsibility for the overall project management, provides key regulatory consulting to ensure full compliance with EU and national regulations, and provides hosting services for the entire hardware architecture on secure servers. In addition, AKD is in charge of the continuous ICT security monitoring of the system, protecting it from potential cyber threats. Their team also manages the system's performance, ensuring its smooth and efficient operation, and provides comprehensive support to economic operators, both in the process of initial registration and inclusion in the system (onboarding), and through continuous technical and user support.

Irish-Croatian partnership for market security

The partnership with Smurfit Westrock Security Concepts (SWSC), which possesses a unique combination of experience in security printing and modern technological solutions, was key to success in the Irish market. SWSC is not a new player in this field; since 1996, they have been designing and printing tax stamps on tobacco products for the Irish Revenue, thereby gaining in-depth knowledge of the local market and regulatory requirements.

Peter Thomas, CEO of SWSC, emphasized the synergy arising from this collaboration: "Through this partnership, we are delivering a robust, secure, and future-proof solution for the issuance of digital identification tags, specifically tailored to the Irish market. With a strong local presence, experienced partners, and a fully compliant platform, our collaboration brings together unparalleled expertise in the field of secure identification systems, traceability, and regulatory compliance, with a proven track record of successful implementation across Europe."

This collaboration brings together the best of both worlds: Croatian digital expertise in the development and management of complex software traceability systems and Irish experience in the physical security of products and knowledge of local conditions. The ultimate goal is to provide a superior service and regulatory guarantee to the Irish Revenue, but also to enable European Union citizens to confidently identify authentic and legitimate products, thereby directly protecting their health and safety.