Adds Established Colombian Grower
VANCOUVER, Sept. 18, 2019 /CNW/ - Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) ("Organto" or "the Company"), an integrated provider of fresh organic and conventional vegetables and fruits today announced the expansion of its avocado supply chain with the addition of a strategic grower based in Colombia.
Shipments have commenced, and commercial distribution in European markets is expected to start during the week of September 24th. Initially, Organto will receive weekly volumes of approximately 20,000 kgs. and expects to realize selling prices ranging from CDN $4.25 to CDN $5.25 per kg. dependent upon product size, packaging format and distribution point. Shipments are expected to run for the duration of the Colombian season and end in February 2020.
"Demand for avocado continues to grow globally due to its nutrient dense nutritional profile. Avocado contains heart-healthy monounsaturated fat, are naturally sodium, sugar and cholesterol free, are high in dietary fiber, contains vitamins A, B, C, E and K and also contains phytochemicals and antioxidants. Avocado has been described as the millennial generation's favorite fruit, leading to strong global demand for the fruit." commented Rients van der Wal, CEO of Organto Europe B.V. "We view avocado as a key product in our growing vegetable and fruits portfolio, and the addition of this new strategic supply source is very important as we work to develop our year-round supply capabilities to meet demand."
Over the past year, Organto has repositioned its organic foods platform shifting from an asset heavy, single revenue stream business model, to an asset light, multi-stream business model. The Company has made important progress in executing its plans including exiting Company-owned growing operations, selling its vegetable processing facilities in Guatemala (subject to shareholder approval) and exiting Company operated packaging operations in the Netherlands, all in favor of strategic sourcing arrangements with grower partners in Peru, Argentina, Mexico, Zimbabwe and others and third party processing and packaging arrangements with globally positioned strategic partners. The expansion of avocado supply to Colombia aligns with Organto's supply chain expansion goals as it pursues new strategic supply sources intended to complete year-round supply of its core product offerings and also bring new complimentary products to its existing portfolio.
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'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. The Organto Foods Group is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO fruit and vegetable products using an asset-light business model to serve a growing socially responsible and health conscious consumer around the globe.
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 supply capabilities and plans to continue to develop and expand these capabilities; plans to expand product offerings; Organto's belief demand for avocado continues to grow globally due to its nutrient dense nutritional profile; Organto's belief that avocado is a key product in its portfolio of products; 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, unfavorable 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 and partners. 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: 604-634-0970, 1-888-818-1364, [email protected]