The agreement with Amir Marketing and Investing in Agriculture delivers greater accessibility to RZTO technology amongst farmers across Israel as Roots’ new business pipeline continues to build.
() has secured a major sales channel into the Israel market for its proprietary Root Zone Temperature Optimisation (RZTO) technology.
This comes by way of a strategic deal with large retail and wholesale agricultural supplier Amir Marketing and Investing in Agriculture Ltd (TLV:AMRK) to promote and sell the RZTO technology in Israel.
The agreement includes a ‘Buy Now – Pay Later’ component aimed at lowering the barriers of entry for farmers and expediting product uptake.
Plan gaining traction
This payment plan is already gaining traction with the first sale valued at $14,300 for an RZTO system. The system, which was sold to a peonies grower in North Israel, was recently installed.
The company plans to adapt this type of sales plan and roll it out in other countries if it is successful in Israel.
Roots executive chairman and chief executive officer Boaz Wachtel said: “This strategic agreement is a significant milestone for the company as it provides a major sales channel into the Israeli market, as well as visibility for our solutions in over 23 retail stores throughout the country at little expense.
“The payment agreement we have struck with Amir will make our technology much more accessible to farmers and other growers throughout Israel as the payment terms align well with farmers’ receivable terms.
“The agreement further validates Root’s RZTO technology after passing scrutiny by Amir experts.”
Roots is seeing an increasing demand for its RZTO technology in Israel and multiple international markets.
It has set up an in-country supply chain to fulfil any orders from potential customers quickly and efficiently.
Wachtel said: “Roots is well positioned with a strong supply chain and has number of initiatives underway to drive sales domestically where RZTO is being well-received and accepted.
“As sale materialise through Amir, we will update shareholders on progress. If we can achieve success in Israel using ‘Buy Now – Pay Later’ terms, we plan to adapt this type of plan in other countries.”
Roots and Amir management following the execution of the strategic agreement.
Spread payments up to 24 months
Under the agreement, Amir will exclusively promote its RZTO technology in its 23 stores and offer the ‘Buy Now – Pay Later’ plan, which will allow consumers to spread payments up to 24 months, with flexible payment structures.
The sales and marketing agreement will run for one year, with the option to extend if agreed by both parties.
Roots will pay a fixed commission to Amir for services rendered. The amount paid is confidential.
Although Amir is not required to meet any minimum purchase requirements, Roots is confident the agreement will underpin further sales of its RZTO technology.
Training and education initiatives with Amir staff are now underway and the payment plan will be launched in stores imminently.
Major retail and marketing company
Amir has 23 retail stores and trade centres across all major agricultural areas in the country and services around 7,500 customers per annum. It has a market capitalisation of around $113 million and the equivalent of A$126.8 million cash at bank.
Amir is a subsidiary of Amir Supply, a company founded in 1942 and owned by the Farmers Association, an association of private farmers in Israel that invests in technologies that will help its industry.
It is a leader in Israel in the fields of marketing and supplying agricultural inputs to private farmers. It also manufactures food blends in the company’s plant.
The company supplies and distributes its products through branches and cardboard construction centres across all the main agricultural areas in the country.
About 60% of Amir’s customers are private farmers, 30% are kibbutzim, agricultural associations in the Moshavim and other organisations while around 5% are merchants and 5% gardening and casual customers.