VANCOUVER – 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. 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
Source: Organto
