Authentication and consumer engagement solutions creator YPB Group (ASX: YPB) has signed a 3-year Master Service Agreement (MSA) with Addera Peru which specialises in contract packaging for the rice industry in that country.
The agreement grants Addera exclusivity for the Rice packaging Industry in Peru for the Term of the Agreement. Rice is a significant industry in Peru accounting for 12% of agricultural production by value. Addera will market YPB’s technology primarily as a value-added consumer engagement solution and has already signed the first adopter.
This contract demonstrates that YPB is advancing the monetisation of its ProtectCode authentication and anti-counterfeit solution via the marketing power of its proprietary Connect platform. The connectivity and feature richness added to Connect during 2023 is capable of accelerating revenue generation across YPB’s entire IP portfolio, particularly given the increasing adoption of QR code technology in so many fields and the increasing value of direct consumer engagement.
The agreement also reflects YPB’s strategy of focussing on Digital Transfer Technology where our ProtectCodes can be sent anywhere in the world without the need for shipping and materials handling, making the opportunity genuinely global. This digital transfer focus is a recent innovation, and its potential is magnified by increasingly effective outbound marketing.
The material details of the contract are:
- Minimum revenue estimate over the Term of the contract A$115,000.00
- Term 3 years from commencement date
- Exclusivity for the Peru rice packaging Industry for the Term
- Fee per QR code generated.
- Termination by customer 30 days subject to payment of the Minimum Order Quantity over the initial Term.
I am pleased that our direct marketing efforts initiated during 2023 have realised yet another valuable contract, following USA scratch lotteries and Korean packaging, in an otherwise improbable prospect,” YPB Executive Chairman and Group CEO, John Houston, said.
“Not only have we entered the rice segment of the FMCG market, but we have also entered a large, new territory at minimal incremental cost. The value-creation potential of linking all our solutions via Connect as the hub is hard to overstate. I am optimistic of driving further high margin revenue opportunities in coming months.”
