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,
Steve Bromley
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.
ABOUT ORGANTO
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.