First Sales of Organic Soft Fruit
VANCOUVER, Sept. 11, 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 as part of its strategy to add organic soft fruit to its product portfolio, supply has been established and sales of organic blueberries have commenced into the European market. This represents Organto's first sales of organic soft fruit, a key step in the development of Organto's year-round value-added organic fruits and vegetables product offering.
Organto's year-round supply program will be supported by strategic growers located in Argentina, Mexico and Peru. Initial supply has commenced from Argentina and is expected to increase as additional growers begin their deliveries in the coming months. Organto continues to expand its market presence and develop opportunities for Organto "I am Organic" branded products as well as private label and distributed product offerings.
"We are very pleased to have commenced sales of organic blueberries, adding to our current organic fruits and vegetables sourcing and supply platform." commented Steve Bromley, Chair and Interim CEO, Organto Foods Inc." The addition of organic soft fruits including organic blueberries is consistent with our strategic realignment that we announced in April of this year, focused on increasing revenue streams beyond value-added organic vegetables, deepening our supply relationships and rightsizing our cost base. We are having success on all three strategies, and are encouraged by the progress we are making."
Sales of organic blueberries to customers in the Netherlands began in the first week of September and revenues generated from this initial supply source are forecast to grow to approximately CDN $25,000 to $30,000 per week by the end of October 2018. The program is expected to expand as additional supply and other end markets are added. Organto expects potential revenues from the sale of distributed and branded "I am Organic" organic blueberries to grow to approximately CDN $5 to $7 million annually.
ON BEHALF OF THE BOARD,
Chair and Interim Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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 including organic blueberries; plans to expand product offerings including organic blueberries; the market potential for organic blueberries; 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.
For further information: Investor Relations: 1-888-818-1364, [email protected]