Increases Revenue Target for Ginger and Tumeric Category to CDN $10 Million by 2023
VANCOUVER, BC and BREDA, THE NETHERLANDS / ACCESSWIRE / April 20, 2021 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) ("Organto" or "the Company"), an integrated provider of organic and value-added organic fruits and vegetables today announced the expansion of its organic ginger program via an expanded relationship with a key Brazilian supplier.
Organto initially began distribution of organic ginger in late 2018 from supply partners in Peru and Asia. In September 2020 Organto diversified its product offering and established year-round supply of ginger and turmeric by adding a key strategic supplier in Brazil. The Brazilian supplier maintains its own production and packaging operations and represents a group of approximately 200 local growers located in key organic ginger growing regions in the country. Brazilian ginger is recognized for its intensity of taste and generally larger hand sizes versus other growing regions.
Based on the successful acceptance of Brazilian ginger across its European customer base, Organto has expanded its Brazilian supply program, and expects to increase annual volumes from this Brazilian supply partner to approximately 800,000 kgs in 2021 versus the 120,000 kgs received in 2020. Organto is also working with this supplier to double planned 2021 volumes by fiscal 2023, significantly increasing supply in order to meet expected market demand.
"We are very pleased to significantly expand our organic ginger program with our strategic Brazilian supply partner following the market success we realized in 2020," commented Rients van der Wal, Co-CEO of Organto and CEO of Organto Europe B.V. "We look forward to continuing to expand our ginger category together with our strategic supply partners. We believe demand for ginger will continue to grow as consumers seek out the unique health benefits derived from its high antioxidant levels and anti-inflammatory properties and their desire for unique taste experiences."
Based on the combination of growing market demand and the continued expansion of supply, ginger and turmeric represent another significant category in the Company's growing organic fruits and vegetables product offering. Organto has increased its longer-term revenue target for the ginger and turmeric category from CDN $5 million to CDN $10 million in annual revenues1 by 2023.
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.
For more information contact:
Investor Relations
info@organto.com
ABOUT ORGANTO
Organto is an integrated provider of branded, private label and distributed organic and non-GMO fruit and vegetable products using a strategic asset-light business model to serve a growing socially responsible and health-conscious consumer around the globe. 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 belief that Brazilian ginger is recognized for its taste intensity and generally larger hand sizes; Organto's belief that demand for ginger continues to grow due its unique health benefits; Organto's belief that volumes will continue to grow with this strategic supplier; Organto's goal to build the ginger/turmeric category to CDN $10 million in annual revenue over time; 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.
1 Forecast is based on shipping organic products with an average sales price ranging from CDN$2.50/kilo to $3.25/kilo of sold product. We anticipate sourcing products from numerous suppliers and countries including, but not limited to, Peru, Brazil and Asia.
SOURCE: Organto Foods Inc.
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