‘High margin revenue opportunities’: YPB enters valuable Peru rice market

YPB signs exclusive three-year agreement for rice packaging in Peru with Addera Peru S.A.C
Contract exemplifies YPB’s strategic move towards monetising its ProtectCode technology
YPB working to establish further high margin revenue opportunities in coming months

Special Report:  YPB Group is continuing to monetise its anti-counterfeit and consumer engagement technology through its most recent agreement with a contract packaging company operating within Peru’s rice sector.

YPB Group (ASX:YPB) has inked a three-year master service agreement (MSA) with Peru contract packaging firm for rice Addera Peru S.A.C (Addera).

The deal provides Addera with exclusivity using YPB’s established and patented ProtectCode technology in the vertical of rice packaging in Peru throughout the agreement’s duration.

Rice holds substantial importance in Peru, representing about 12% of the country’s agricultural output value. Peru is the most important producer of rice in Latin America after Brazil.

Addera packages for 250 customers in Peru and under the partnership will promote YPB’s ProtectCode technology as a solution that enhances consumer engagement.  The company has already signed an initial adopter.

Other key contract details of the Addera deal include:

Minimum estimated revenue of $115k throughout the contract’s duration
Fee per generated QR code
Customer termination possible within 30 days, subject to payment of the minimum order quantity over the initial term.

Authentication for fast-moving consumer goods

ProtectCode offers effortless authentication for a wide array of fast-moving consumer goods (FMCG), identification documents, pharmaceuticals, food, and beverages and more.

YPB founder chairman and CEO John Houston says ProtectCode serves as a tool to initiate interactions with end consumers through QR code scanning via smartphones, effectively turning an unseen consumer into a visible one.

“Brands can leverage this technology not only to establish trust but also to yield a return on investment from their packaging expenditure,” he says.

Houston says the technology’s advantage lies in its smartphone compatibility, enabling any consumer with a mobile device to engage with brands implementing ProtectCode on their product packaging.

“Consumers can verify the goods and engage with the brand, think of it like turning a brand’s packaging into a mobile billboard,” he says.

Monetising ProtectCode

Houston says the Addera contract exemplifies YPB’s strategic move towards monetising its ProtectCode authentication and anti-counterfeit solution through leveraging its proprietary Connect platform’s marketing prowess.

YPB Connect is the dashboard unifying the company’s various products giving brands access to a global view of their products from supply chain to end consumers in live time.

Houston says enhancements made to Connect throughout 2023 in terms of connectivity and feature enrichment are poised to expedite revenue generation across YPB’s entire intellectual property portfolio.

“This is especially significant given the widespread adoption of QR code technology in various fields and the escalating importance of direct consumer interaction,” he says.

“Moreover, this agreement aligns with YPB’s concentrated approach on Digital Transfer Technology, where their ProtectCodes can be transmitted globally without the necessity of shipping and material handling.”

Houston says the recent innovation in digital transfer, combined with increasingly effective outbound marketing strategies, amplifies its potential.

The Addera deal is one of several signed by YPB in 2023 as its technology continues to gain traction in helping brands with anti-counterfeit and greater engagement with consumers.

YPB’s technology is now being used to address pull tab/instant lottery ticket fraud in the USA under a deal with Smart-tab Systems LLC.

“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,” Houston says.

“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.”

This article was developed in collaboration with YPB Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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