Year-Round Supply Chain
Re-Established
VANCOUVER, Sept. 18, 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 re-established and expanded its
year-round supply of organic asparagus, and has commenced sales
into the European market. The re-establishment of the organic
asparagus program is a key step in the development of Organto's
year-round value-added organic vegetables product
offering.
Organto's year-round supply program will be supported by
strategic growers located in Peru,
Argentina and Mexico. Supply
has commenced from Peruvian sources and volumes are forecast to
increase as additional growers begin their deliveries in the coming
months.
"We are very pleased to have re-established our organic
asparagus program, adding to our current organic fruits and
vegetables sourcing and supply platform." commented Rients van der Wal, CEO of Organto Europe
BV. "Demand for organic asparagus continues to grow globally
and we believe this is a great addition to our product
lineup. We are excited to be working with these new strategic
growers and also with suppliers we have worked with in the past,
and we believe this will provide our customers with quality and
consistent year-round product."
Sales to customers in the
Netherlands began in the second week of September. The
program is expected to expand as supply increases and other end
markets are added, with potential revenues from the sale of
distributed and branded "I am Organic" organic asparagus expected
to grow over time to approximately CDN $6 to $8 million
annually1.
The addition of organic asparagus to Organto's current product
lineup aligns with Organto's strategy to develop and expand its
value-added organic vegetables and fruits product offering.
As part of its program to diversify its revenue streams and
increase its relevance to its customer base, Organto continues to
build its supply capabilities in value-added organic vegetables and
is also expanding its product offering with a focus on organic
soft, tropical and exotic fresh fruits and other organic
vegetables. Organto plans to continue to establish new supply
relationships with strategic growers to expand its market presence
and develop additional opportunities for Organto "I am Organic"
branded products as well as private label and distributed product
offerings.
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 asparagus;
plans to expand product offerings including organic asparagus; the
market potential for organic asparagus; growing demand for organic
asparagus; 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.
1.
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The CDN$6 million to
CDN$8 million forecast is based on shipping between 600,000 and
800,000 kilos of fresh asparagus
over an entire year with an average price of CDN$9-$11/kilo of sold
product. We anticipate sourcing this product from
numerous producers and countries including, but not limited to,
México, Perú and Argentina
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SOURCE Organto Foods Inc.