Adds Established Colombian
Grower
VANCOUVER, Sept. 18, 2019 /CNW/ - Organto Foods Inc.
(TSX-V: OGO, OTC: OGOFF) ("Organto" or "the Company"), an
integrated provider of fresh organic and conventional vegetables
and fruits today announced the expansion of its avocado supply
chain with the addition of a strategic grower based in
Colombia.
Shipments have commenced, and commercial distribution in
European markets is expected to start during the week of
September 24th.
Initially, Organto will receive weekly volumes of approximately
20,000 kgs. and expects to realize selling prices ranging from CDN
$4.25 to CDN $5.25 per kg. dependent upon product size,
packaging format and distribution point. Shipments are expected to
run for the duration of the Colombian season and end in
February 2020.
"Demand for avocado continues to grow globally due to its
nutrient dense nutritional profile. Avocado contains
heart-healthy monounsaturated fat, are naturally sodium, sugar and
cholesterol free, are high in dietary fiber, contains vitamins A,
B, C, E and K and also contains phytochemicals and
antioxidants. Avocado has been described as the millennial
generation's favorite fruit, leading to strong global demand for
the fruit." commented Rients van der
Wal, CEO of Organto Europe B.V. "We view avocado as a
key product in our growing vegetable and fruits portfolio, and the
addition of this new strategic supply source is very important as
we work to develop our year-round supply capabilities to meet
demand."
Over the past year, Organto has repositioned its organic foods
platform shifting from an asset heavy, single revenue stream
business model, to an asset light, multi-stream business model. The
Company has made important progress in executing its plans
including exiting Company-owned growing operations, selling its
vegetable processing facilities in Guatemala (subject to shareholder approval)
and exiting Company operated packaging operations in the Netherlands, all in favor of strategic
sourcing arrangements with grower partners in Peru, Argentina, Mexico, Zimbabwe and others and third party processing
and packaging arrangements with globally positioned strategic
partners. The expansion of avocado supply to Colombia aligns with Organto's supply chain
expansion goals as it pursues new strategic supply sources intended
to complete year-round supply of its core product offerings and
also bring new complimentary products to its existing
portfolio.
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'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. The Organto Foods
Group is an integrated provider of year-round value-added branded
organic vegetables and seasonal organic and non-GMO fruit and
vegetable products using an asset-light business model to serve a
growing socially responsible and health conscious consumer around
the globe.
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 supply capabilities and plans to continue to develop and
expand these capabilities; plans to expand product offerings;
Organto's belief demand for avocado continues to grow globally due
to its nutrient dense nutritional profile; Organto's belief that
avocado is a key product in its portfolio of products; 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.
SOURCE Organto Foods Inc.
