Positions Company as Premier Exporter of Organic Produce to Europe
VANCOUVER, Dec. 4, 2018 /CNW/ - Organto Foods Inc. (TSXV: OGO) (OTC: OGOFF) ("Organto" or "the Company"), an integrated provider of value-added organic vegetable and fruit products today announced that as part of its ongoing strategy to significantly expand organic product supply from Mexico and position the Company as a premier exporter of organic produce from Mexico to Europe, it has established Organto de Mexico to facilitate the execution of this strategic objective.
Earlier this year Organto announced initial agreements with strategic suppliers of organic blueberries, organic blackberries and organic avocado. Organto has continued to develop supply from Mexico by working with these initial suppliers, plus developing additional strategic grower and third-party processing relationships, increasing potential supply from the region of various organic soft fruits, avocado and value-added vegetables, resulting in Mexico quickly becoming one of Organto's largest supply regions.
"We continue to be excited by the immense supply potential from Mexico and are pleased to be working with our supply partners as we expand our sourcing and supply platform to address continued growing demand for fresh organic vegetable and fruit products in European markets and beyond," commented Rients van der Wal, CEO of Organto Europe BV. "We believe that Mexico offers unparalleled organic growing, processing and supply potential, and believe we are well-positioned to realize on our objective of positioning Organto de Mexico as a premier exporter of organic produce to European markets."
The establishment of Organto de Mexico represents a key step in developing a meaningful presence in a region with significant expertise in organic fruits and vegetables, bringing together Organto's technical knowledge and go-to-market expertise with the infrastructure, technical knowledge, growing and processing expertise of strategic suppliers and processing partners in the region.
With the establishment of Organto de Mexico, human and financial resources are being deployed to meet the needs of the growing business in the region. An office has been established in Guadalajara to manage the operations in the region, working with growers, managing logistics and providing necessary technical and administrative support. Over time Organto intends to utilize the Guadalajara office to coordinate all Latin American administrative processes.
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 has also recently expanded into medicinal cannabis in order to capture expected global growth in this sector and leverage Organto's diverse sourcing, processing, logistics, import, export and organic certification expertise. Driven by consumer demand for healthy and organic food products, its organic foods business 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 medicinal cannabis operations were recently established with the acquisition of Medicannabis S.A.S. based in Colombia. Subject to receipt of required licenses which have been applied for, Organto plans to cultivate, process and sell medicinal cannabis initially in the Colombia market. 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; Organto's positioning as a premier exporter of organic produce from Mexico to European markets; plans to expand product offerings; the potential and benefit of incremental supply from Mexico; 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 continued growth in global demand for cannabis products and the continued increase in jurisdictions legalizing cannabis; and the timely receipt of regulatory approval for the acquisition of Medicannabis and their license applications as well as shareholder approval of the Medicannabis transaction. 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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