One of the best performers on the Australian share market on Tuesday has been the Security Matters Ltd (ASX: SMX) share price.
In morning trade the technology company's shares have jumped 17% higher to 41 cents.
What is Security Matters?
Security Matters is a technology company that owns and is commercialising the technology to permanently mark any object either solid, liquid, or gas with a hidden chemical-based barcode.
This barcode can be read using the company's unique reader to access the corresponding stored data and is recorded and protected using blockchain technology.
Why is its share price jumping higher today?
This morning Security Matters announced the incorporation of a new joint venture company, Security Matters Beverages in collaboration with Global Bevco.
Global Bevco is a company owned by former Macquarie Group Ltd (ASX: MQG) banker Peter Yates AM and Leon Kempler AM.
The joint venture will aim to complete the development of its patented wine anti-counterfeit and adulteration system and commercialise its application. The two companies will have a 50% stake in Security Matters Beverages.
The newly formed partnership will apply Security Matters' solution to alcoholic beverages globally, with work already underway with key stakeholders to develop global standards and test the technology.
Security Matters founder and CEO, Haggai Alon, said: "We are focused on assisting FMCG companies to demonstrate brand integrity and production visibility – from raw material to recycling – with all information stored on the block chain. Through the joint venture we will be executing an aggressive strategy in 2020, targeting the FMCG market and specifically the alcohol industry which accounts for over $500 billion annually of counterfeit goods."
"Following the successful demonstration of our pioneering technology incorporated in different types of wine, we are finalising the markers to embed into wines within Australia and Europe while solving the regulatory issues surrounding wine provenance, quality and production methods," he added.
This could be helpful for global wine giant Treasury Wine Estates Ltd (ASX: TWE) which has had issues with copycats and counterfeits in the past.
Peter Yates, Director of Global Bevco, notes: "The sale of counterfeit wine is a significant threat to the industry that occurs at all price points and is particularly prevalent in China."
"Moreover, it is a social problem that deprives communities of the value they have created, especially growers of premium product. SMX's technology, pioneered in Israel, is a unique commercial solution to this social problem and represents the holy grail for preventing counterfeiting of wine," he concluded.
