Root’s Italian distributor sets multi-million dollar sales targets

By Jonathan Jackson. Published at Feb 13, 2020, in Technology

Italy is in the top three European countries for agricultural production, with fruit and vegetables. It is also Europe’s main supplier of vegetables.

It makes for a perfect market for Roots Sustainable Agricultural Technologies Limited (ASX:ROO) to take an ag-tech stronghold as it looks to boost sales of its Root Zone Temperature Optimization (RZTO) technology in this region.

RZTO technology helps companies improve crop quality and increase yields.

Roots entered the market in October 2019, when it signed a 12-month Letter of Intent (LOI) with leading Italian ag-tech producer and nursery Cairo & Doutcher.

Cairo & Doutcher has been using the technology with great success after Roots installed its hybrid ground source heat exchange system combined with a heat pump to improve crop quality and increase yields for herbs and flowers at Cairo & Doutcher’s growing facilities in Southern Italy.

The Italian producer is an early adopter of agricultural technology, utilising innovative cultivation techniques to improve the quality of its pomegranate, mango, avocado, herb and flower crops. Its satisfaction with the effects of the RZTO system has led to a further agreement between the companies that could have mutual benefits.

This week Cairo & Doutcher signed an exclusive binding agreement to sell a minimum of five Root Zone Temperature Optimization (RZTO) systems during 2020.

To maintain exclusivity in relation to selling the RZTO system Cairo & Doutcher must build up sales of the RZTO system over a three year period, with incremental growth expected each year.

Over the course of the following three years, Cairo Doutcher has also agreed to increase sales of the RZTO systems by 100% per year from €500,000 during 2021, to €1 million in 2022 and €2 million in 2023.

Putting that in an Australian context, Italy could be a lucrative market for Roots worth A$3.2 million annually in as little as three years’ time.

Boaz Wachtel, ROOT's CEO and Chairman said, "With this agreement we are confident we will be able to secure a strong foothold in the very important Italian market and produce significant sales."

Italy holds great potential for roots RZTO’s technology, with the company confident it can produce significant sales and expand its footprint in this territory and throughout Europe.

Dr. Sharon Devir, Roots co-founder and director said, "This binding distribution agreement is testimony to the viability of RZTO technology and the interest it generates around the world. Italy is an important agricultural producer for the EU and it’s a versatile market with great potential for roots RZTO’s technology.”

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!