Apio, McEntire Produce Enter Distribution Agreement

GUADALUPE, CA – July 20, 2010 – Apio, Inc., the leader in processing and marketing fresh-cut specialty vegetables in the U.S., announced today that Apio has entered into a co-packaging and distribution agreement with McEntire Produce Inc. to enhance the distribution of Apio’s Eat Smart® specialty packaged fresh-cut vegetable products.

McEntire, based in Columbia, South Carolina, is a producer and marketer of salad and tomato products. McEntire will produce and distribute Apio’s Eat Smart specialty packaged fresh-cut vegetable products in the Southeast and Mid-Atlantic regions of the United States. Apio’s Eat Smart specialty packaged fresh-cut vegetable products are unique in that they utilize the Landec BreatheWay® proprietary breathable packaging to extend the shelf life of specific produce products.

Under the agreement McEntire will supply the facility, labor, management and distribution services while Apio will provide materials and equipment plus sales and marketing support. The initial focus of the operation will be the local production of Apio’s market leading vegetable trays. Subsequent product offerings will include bagged vegetables and regional products. Initial production shipments are expected in early September 2010.

“We are excited about offering regional production and distribution of our Eat Smart products to the Southeast and Mid-Atlantic regions,” said Ron Midyett, Chief Executive Officer of Apio. “During peak holiday seasons, demand for our vegetable tray products can vary significantly, making it challenging to respond to short lead-time customer demand. By partnering with McEntire, we will be able to be more responsive and help our Southeast and Mid-Atlantic retail customers manage their inventories and avoid shrink, not only during holiday seasons, but also year round. With its focus on quality, freshness of produce, and distribution reach, McEntire is an ideal partner for Apio’s Eat Smart fresh cut products.”

“We look forward to working with a proven, category leader such as Apio,” said Carter McEntire, Senior Vice President of McEntire Produce Inc. “We feel strongly that the capabilities of our respective organizations align well in this relationship, and that we well be able to deliver positive enhancements to both businesses.”

Source: Apio Inc.