YPB signs MSA with iconic Seppeltsfield Wines

Brand protection and retail engagement specialist YPB Group Ltd (ASX:YPB) has signed a Master Services Agreement with Seppeltsfield Wines for the supply of YPB’s brand authenticity solutions for select lines.

YPB provides patented anti-counterfeit and customer engagement solutions that detect and prove certainty of authenticity and connect brands directly to their customers, an increasingly sought after technology due to the rapid growth of cross-border commerce.

YPB’s technologies have been readily accepted in south-east Asia and China, as well as Australia.

Seppeltsfield is one of Australia’s oldest wineries, having been established in 1851 and located in the prolific Barossa wine region.

The agreement marks the first commercial release of YPB’s Vintail coupled with YPB’s globally successful customer engagement solution, YPB Connect.

YPB chief executive and executive chairman, John Houston said: “We are extremely proud to be associated with the historic and iconic Seppeltsfield brand and pleased to provide their consumers with an experience we believe marks the start of a new generation in interactive packaging that goes well beyond product authenticity.”

Indeed, Seppeltsfield wines are premium quality, and they are in high demand in both Australian and overseas markets.

However, export markets have proven to be challenging for some Australian wine producers with evidence that tampering such as the refilling of wine bottles with other products is taking place.

Recurring revenues over three years

Under the MSA, YPB is to receive revenue from a standard monthly subscription fee for the Connect platform along with volume-based sales of Vintails, providing the company with recurring revenues.

Seppeltsfield will place orders for Vintails in accordance with their production runs.

The term of the MSA is three years that may be automatically extended for a further two years on the same terms and is otherwise able to be terminated by either party with 30 days’ notice.

This is a favourable financial outcome for YPB, as a long-term contract provides earnings predictability.

There are no other material terms or outstanding conditions to the MSA or other agreements in place with Seppeltsfield Wines.

Security and brand engagement wrapped in one

The YPB Vintail is an industry-driven adaption of YPB’s NFC anti-tamper solution, and is paired with the group’s Connect platform to trigger a direct consumer to brand engagement.

Consumers can gain a deeper brand driven appreciation of the product, and the brand can gain valuable insights on the journey of their products and the purchasing behaviours of their consumers.

Underlining the importance of ensuring wine authenticity, executive chairman Seppeltsfield Wines, Warren Randall said, “As a global wine brand, it is important that Seppeltsfield Wines continues to be at the forefront of innovation.

“As we begin to expand our luxury wine collection, we are proactively investing in technology to guarantee wine authenticity.”

Randall noted that Seppeltsfield had worked closely with YPB to customise the Vintail technology, paving the way for the group to become the first wine brand to launch the authenticity and consumer engagement innovation in Australia.

More specifically, Randall said, “Through the Vintail and a customised technology platform, every bottle of our newly-released Shiraz range can be authenticated.

“Using a smart phone tap and go process, wine drinkers have the ability to both ensure their product is genuine, as well as enjoy an immersive Seppeltsfield Wines’ brand experience.

“The YPB Vintail – a microchip – has been embedded into the neck of each bottle of The Westing and The Northing Barossa Shiraz.

Each bottle is uniquely serialised for brand authenticity.”