YPB Group Limited (ASX: YPB) Secures Third Major Distribution Partnership In China, Ahead Of First Contract With Wine Major Accolade

  • Oct 09, 2018 AEDT
  • Team Kalkine
YPB Group Limited (ASX: YPB) Secures Third Major Distribution Partnership In China, Ahead Of First Contract With Wine Major Accolade

YPB Group Limited has inked a three-year contract with new distribution partner in China, which has opened access for YPB to reach the Chinese producers of Fast-Moving Consumer Goods products. The YPB’s new channel partner is a China arm of major privately-owned supplier of plastics to FMCG manufacturers.

Headquartered in Shanghai, China new distribution partner of YPB enables it to penetrate the FMCG market in China for the first time. This is the fourth major industry that YPB Group now has access to through its new channel partners in China - the other three announced recently include autos, oil and electronics.

The Anti-counterfeit and customer engagement solutions provider YPB Group told that the new channel partner has already cracked its first deal with a leading Chinese shampoo brand to use YPB solutions. With the expected monthly production volume of 1 million shampoo bottles, the client intends to use YPB’s anti counterfeit technology for the protection of its brand value and customers from fakes.

The contract comes in a row to the new electronic goods channel in China, recently secured with Shenzen Meixin Electronics Co (SME). Headquartered in Shenzen, China, SME is a supplier of tapes and adhesives for the electronic industry with sales to global electronics consumer goods manufacturers across China, Europe, America, South East Asia among others. Whereas, channel partner CCN Technologies provides YPB technology solutions to auto manufacturer and lubricant majors. 

YPB’s Executive Chairman John Houston stated that the company expects a significant improvement in the financial performance of its China business unit ahead of successfully penetrated into global high-volume industries in China this year.

Along with securing new channel partner in China, YPB Group has also signed a three-year master supply agreement with Australia based wine company Accolade Wines. The contract with first wine industry client requires YPB to provide the integrated technology suite for brand protection and customer engagement. The term of contract has an extension option of two years.

At the start, Accolade is said to introduce YPB’s solutions in the Grant Burge range of wines. Under the terms of contract, Accolade will use YPB’s ProtectCode QR Technology and YPB Connect which will enable it to secure anti–counterfeit and direct consumer engagement capabilities at low cost per unit. In the process of direct consumer engagement, YPB technology will allow Accolade to get into a direct conversation with its final consumer of the product, thereby providing better customer support services.

Accolade Wines which was acquired by Carlyle Group in April 2018, is Australia’s and the UK’s largest wine company.

Accolade’s flagship brand includes Hardys, followed by the portfolio of St Hallett, Petaluma, House of Arras, Houghton, Grant Burge Wines in Australia, Mud House and Waipara Hills in New Zealand, Kumala & Flagstone in South Africa, Geyser Peak and Echo Falls in United States, and Viña Anakena in Chile. However, the group strategies to develop its Asia and China business in particular.

The stock of YPB Group last traded at $0.018 on 9 October 2018. The stock has seen a performance change of -58.14% over the past one year.

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