- Product authentication and consumer solutions provider YPB Group (YPB) has inked a deal to access the tobacco and tax stamp industries in Thailand
- The company has signed a master service agreement (MSA) with a new channel partner, Specific Products, in Thailand
- Specific Products provides gravure inks and adhesives for cigarette packaging and fillers, as well as the tax stamp industries
- The agreement is for three years and gives Specific Products the right to promote and sell YPB’s authentication technologies to both current and new customers
- Counterfeiting is a major problem in Thailand, a country which has been named as one of the top sources of counterfeit goods
- On the market this morning, YPB is up 14.3 per cent and is trading for 0.4 cents per share
Product authentication and consumer solutions provider YPB Group (YPB) has inked a deal to access the tobacco and tax stamp industries in Thailand.
The company has signed a master service agreement (MSA) with a new channel partner, Specific Products, in Thailand.
Specific Products, based in Bangkok, is a reseller of gravure inks and adhesives. Thailand’s tobacco manufacturers are its main customers, which use Specific Products’ packaging and cigarette fillers. The company also operates in Thailand’s tax stamps industry.
The agreement is for three years and gives Specific Products the right to promote and sell YPB’s authentication technologies to both current and new customers.
Under the agreement, Specific Products will earn a 12 per cent commission on every purchase order for a YPB product.
YPB says it is certain Specific Products can secure revenue for the company over time. The businesses are already progressing sale opportunities in the tobacco and tax stamps markets.
Counterfeiting is a major problem in Thailand, which has been named as one of the top sources of counterfeit goods by the Organisation for Economic Cooperation and Development (OECD) and the European Union’s Intellectual Property Office.
Specific Products and YPB are confident that YPB’s products can reduce the cost and harm of counterfeit in Thailand.
YPB CEO, John Houston, says its sales strategy of channel partners continues to gain momentum.
“It is proving its power in China, with our successful new partnerships there driving revenues,” he said.
“Now with Specific Products, we are opening doors to high volume, large industries in Thailand but at low cost and with low risk. Given we are already engaging with Specific’s customers, we are hopeful of first revenues from this channel in coming months,” he added.
The need for product authentication and consumer engagement solutions is growing, and John believes that YPB’s technologies offer solutions to the major problem.
“Our channel partner strategy has the potential to build a large customer base with great profit leverage given minimal cost and risk, as our sales resources are multiplied manyfold by powerful partners with existing customers in need of solutions,” he explained.
“Further channel partner developments are in train and should provide the base for driving revenue higher over the coming year,” he added.
On the market this morning, YPB is up 14.3 per cent and is trading for 0.4 cents per share at 11:03 am AEDT.