VANCOUVER, Sept. 25, 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 expanded its product portfolio with the addition of year-round organic avocado. Demand for organic avocado has grown steadily and is expected to continue to grow into the future due to the fruit's nutritious profile which is high in potassium, heart healthy monounsaturated fats and fiber. Eating avocado has been proven to lower cholesterol and triglyceride levels and aligns with today's healthy eating and healthy living trends.
Organto's organic avocado program is designed to provide year-round supply from strategic supply partners in Mexico and Peru. Initial shipments are now en-route from Mexico and are expected to be received in Europe in early October for immediate delivery to customers in Germany and the Netherlands. The initial shipments were fully sold in advance of shipping, indicative of the strong demand for organic avocado.
"We are very excited to add organic avocado to our organic vegetables and fruits sourcing and supply platform, and are pleased to be working with our new strategic supply and commercialization partners." commented Rients van der Wal, CEO of Organto Europe BV. "Demand for organic avocado continues to grow globally due its flavor and nutrition profiles, and we are confident that this product will be a great addition to our portfolio, initially as a distributed product followed by our "I am Organic" brand."
Organto expects sales of organic avocado to rise over the balance of 2018 and into 2019 as supply increases and commercial activities expand. Initial shipments of approximately 20,000 kgs of organic avocado are currently en-route to Europe. Organto expects potential revenues from the sale of organic avocado to grow to in excess of CDN $10 million annually.1
The addition of organic avocado to Organto's product line-up is part of Organto's strategy to expand its value-added organic vegetables and fruits product offering. Organto continues to increase its supply capabilities via the addition of new 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 intends 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 and distributed product 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 avocado; the health benefits of organic avocado; expected first shipments and revenue potential: 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.
The CDN$ 10million forecast is based on shipping approximately 3 million kilos of fresh organic avocados over an entire year with an average price of CDN$3.00 -$4.00/kilo of sold product. We anticipate sourcing this product from multiple producers and countries including, but not limited to, México and Perú.
SOURCE Organto Foods Inc.
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