DataDot Technology Limited (ASX:DDT) is pursuing opportunities in the growing export food and wine authentication market through a newly established joint venture with Beston Pacific Group.
DDT and Beston subsidiary company, Grape Ensembles Co Pty Ltd (“GE”), have jointly established Brandlok Brand Protection Solutions Pty Ltd (“Brandlok”). Over the next 9 months Brandlok will develop labels and other devices to authenticate and provide information on wine, dairy, seafood, health food and meat products to be exported to China, Southeast Asia, the Americas, Europe and Middle East.
DDT has granted an exclusive 5 year licence of its DataTrace authentication technology to Brandlok for incorporation into the labels and devices to prove authenticity for these exported products. Beston Global Food Company Limited (“BGFC”) will be Brandlok’s first customer. BGFC recently completed a capital raising for its Initial Public Offering and is expected to list on the ASX at the end of this month.
In consideration of the grant of the licence, DDT receives 20% equity stake in Brandlok and specified royalties for each label depending on the value of the product and quantities of labels used.
Mr Bruce Rathie, Chairman of DDT, said that the Brandlok joint venture and its arrangement with the new company BGFC focussed on food exports to China and other markets represents a significant opportunity to capitalise on major concerns regarding food security, safety and counterfeiting in these emerging export markets.
Dr Roger Sexton, Chairman of BGFC, said that the joint venture will provide the opportunity to assure customers in Asia of the authenticity of any BGFC food and beverage products sold into these markets. “The Brandlok seals, based on DDT technology, will be applied to all of the clean and green products exported by BGFC so that customers can track and trace the ingredients from paddock to plate and verify for themselves that the products are safe to eat.”