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Blackmores security deal lifts YPB

AAP logoAAP 21/11/2016 Petrina Berry and Peter Trute

Vitamin maker Blackmores has signed a two-year agreement with brand protection company YPB Group to use its technology to prevent counterfeits.

Under the master supply agreement, Blackmores can use YPB's invisible, indestructible tracer and marker technology in packaging to ensure product authenticity and will also have access to YPB's customer-oriented counterfeit reporting technology.

"The opportunity to work with Blackmores is an important endorsement of our vision to help Western exporters realise the potential of Asia while protecting and growing the value of their brands," YPB executive chairman John Houston said in a statement on Monday.

The announcement sent YPB's shares soaring, with the stock up more than 16 per cent during early afternoon trade and at 1516 AEDT YPB shares were up two cents or 12.9 per cent at 17.6 cents.

Blackmores is one of YPB's biggest clients to date, alongside packaging maker Orora, which it struck a supply agreement with earlier this month.

Under that agreement, Orora will offer its customers YPB's anti-counterfeit technology.

It is not clear when or how widely Blackmores will deploy YPB technology, with YPB executive chairman John Houston telling AAP that decisions on implementation will be made by Blackmores.

Blackmores is selling its products to China through a new export division which more than tripled its Chinese sales to $31 million in the first quarter of 2016/17, compared to the same period a year ago.

Its other markets include Thailand, Malaysia and South Korea and in September it launched in Indonesia.

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