VANCOUVER, Sept. 6, 2018 /CNW/ - Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) ("Organto" or "the Company"), an integrated provider of value-added organic vegetables and fruits today announced that it has entered into a strategic supply relationship with an established supplier of organic ginger located in Peru, expanding its year-round organic fruits and vegetables product offering.
Under the terms of the agreement, Organto has exclusive rights for organic ginger from this supplier for distribution in the EU market. The supplier, an established collective of six growers located in Peru, has extensive experience in the production of organic ginger and other organic vegetables, and it is the intention of both parties to expand beyond ginger into other product offerings.
"We are pleased to add organic ginger to our organic fruits and vegetables sourcing and supply platform," commented Rients van der Wal, CEO of Organto Europe BV. "Demand for organic ginger continues to grow globally due its popularity as a spice and flavoring agent, combined with an impressive array of unique health benefits largely due to its antioxidants and anti-inflammatory properties. We are excited to work with our new supply partner to capture this market opportunity and grow distribution of organic ginger and the "I am Organic" brand."
Sales to customers in Spain, the UK and the Netherlands began in the last week of August 2018. Approximately 20,000 kgs were distributed with a sales value of approximately $50,000 CDN and the program is expected to expand as supply increases and other markets are added. Organto expects potential revenues from the sale of organic ginger and related products to grow to in excess of CDN $5 million annually.
The addition of organic ginger to Organto's product catalogue is part of Organto's strategy to expand its value-added organic fruits and vegetables product offering. Organto continues to increase its supply capabilities via the addition of expanded supplier relationships focused on organic soft, tropical and exotic fresh fruits and other organic vegetables in order to diversify its revenue streams beyond just high-value organic vegetables. Organto plans to continue to establish supply relationships with strategic growers in key supply markets in order to expand market presence and develop opportunities for Organto "I am Organic" branded products as well as private label offerings.
ON BEHALF OF THE BOARD,
Chair and Interim Chief Executive Officer
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Organto is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO fruit and vegetable products serving a growing socially responsible and health conscious consumer around the globe. Organto employs a business model that is integrated from the "table to the field". Driven by consumer demand for healthy and organic food products, it operates an integrated business model with sourcing, logistical and processing capabilities, providing complete traceability from the table back to the field. Operations are currently located in Guatemala, The Netherlands and the USA, as well as third-party supply from a variety of regions, with plans to continue to expand supply capabilities via strategic third-party growers and processors in Africa, Mexico and other growing regions. Organto's business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people and its shareholders.
FORWARD LOOKING STATEMENTS
This news release may include certain forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"). In particular, and without limitation, this news release contains forward-looking statements respecting Organto's business model and markets; Organto's integrated year-round supply capabilities and plans to continue to develop and expand these capabilities; plans to expand product offerings; the market potential for organic ginger; the health benefits of organic ginger; management's beliefs, assumptions and expectations; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: the ability and time frame within which Organto's business model will be implemented and product supply will be increased; cost increases; dependence on suppliers, partners and contractual counter-parties; changes in the business or prospects of Organto; unforeseen circumstances; risks associated with the organic produce business generally, including inclement weather, unfavourable growing conditions, low crop yields, variations in crop quality, spoilage, import and export laws and similar risks; transportation costs and risks; general business and economic conditions; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors, partners and joint venturers. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.
SOURCE Organto Foods Inc.
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