- Authentication provider, YPB Group has won its first dairy sector contract with Nature One Dairy
- Under the contract, YPB will integrate its Connect technology into Nature One Dairy’s milk powder tins which are exported to China
- Connect allows consumers to confirm the authenticity of various products
- This effectively combats the rise of consumer good knock-offs
- First tins including Connect will be made in January 2020, and revenue is expected soon after
- YPB Group is up 16.7 per cent, with shares trading for 0.7 cents each
YPB Group has sealed a contract to integrate Connect into Nature One Dairy milk powder tins.
Nature One Dairy (NOD) is the first dairy sector client for YPB’s Connect platform.
Essentially, Connect is a technology suite that allows consumers to confirm product authenticity. This is particularly important as cross-border trade is growing rapidly.
YPB’s current strategy is to target high-need, mass markets such as dairy, wine, pharmaceuticals, health, beauty and legal hemp.
NOD produces nutritionally-enhanced milk powders and is one of Australia’s only milk formula manufacturers that is accredited by the Certification and Accreditation Administration of the People’s Republic of China (CNCA) for export to China.
Nature One Dairy has a significant presence in China, South-East Asia and the Middle East. Two of its prominent customers are Chinese pharmacy giant, Sinopharm and Chinese food and beverage multinational, Bright Foods.
Additionally, NOD has the CNCA’s approval to restock domestic shelves in China. This means the business can promote YPB’s solutions to its third-party customers to enhance its own product offering.
NOD’s consumers will scan product QR codes which will see Connect capture valuable, consensual data.
This information will allow brands to build clear consumer profiles and develop ongoing relationships through a direct-to-smartphone digital channel.
YPB will provide Nature One Dairy with products and services that will generate recurring revenue in three ways:
- Supply of YPB’s Connect QR codes on a fee per unit volume basis as each can is marked,
- SaaS fees for the provision and management of Connect and
- Website and other consumer marketing content development as required.
First tins incorporating Connect will be made in January 2020 and first revenue is expected shortly after.
To directly print YPB’s Connect codes in Nature One Dairy’s cans, the company has engaged Matthews Intelligent Identification.
Matthews is a leading supplier of product identification, inspection and software traceability solutions to Australian manufacturers.
The contract is for an initial term of two years with an automatic renewal for a further two years.
YPB Group is up 16.7 per cent, with shares trading for 0.7 cents each at 3:07 pm AEDT.