Vancouver, BC, Canada and Breda, the Netherlands – Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF, FSE: OGF) (“Organto” or “the Company”), an integrated provider of organic and value-added organic fruits and vegetables today announced that it has contracted for increased seasonal supply of organic avocado from its strategic grower based in Morocco, with a target of tripling supply versus the previous growing season. The first shipment of the season from Morocco is expected to land in Europe this week, with avocados from this source expected to continue through late February to mid-March 2021 depending on growing conditions and product quality.
Organto first entered into a strategic supply relationship with this growing Moroccan supplier in late 2019 and commercial distribution began in January 2020. The product was well received in the markets, and as a result, Organto has arranged to expand its supply from this important supplier and growing region in order to benefit from increasing market demand. Morocco’s close proximity to Europe enables Organto to deliver and sell these avocados in European markets approximately one week following harvesting and processing, much faster than the three to five weeks for avocados sourced from Latin American and other African growers, and with a lower carbon footprint.
Organto’s year-round avocado supply chain includes supply from strategic sources in Morocco, Colombia, Peru, Mexico, South Africa, Tanzania and Kenya. The Company is continually working to develop new sources of supply in order to meet continued demand from its growing customer base located throughout Europe.
“Demand for avocado continues to grow globally, driven by its nutrient dense nutritional profile and consumer focus on health and wellness. In fact, avocado has been described as the millennial generation’s favorite fruit, leading the strong global demand for this product.” commented Rients van der Wal, Co-CEO of Organto and CEO of Organto Europe B.V. “We are pleased to expand our sourcing and supply from this important growing region and are fortunate to be teamed with an expanding and progressive strategic supply partner. We view avocado as a key product in our core organic vegetable and fruits portfolio, supported by a year-round supply chain that we have built with strategic supply partners from all around the globe.”
Organto expects to realize record fourth quarter revenues of approximately 4.4 to $4.6 million (November 19, 2020 news release), which will be the largest quarterly revenues in the history of the Company, and an increase of approximately 185% versus the same quarter in the prior year. The commercial expansion of organic avocado is expected to be a key contributor to this growth. These results are expected to represent the sixth consecutive quarter of record quarterly revenues for Organto.
ON BEHALF OF THE BOARD,
Steve Bromley
Chair and Co-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. Organto is an integrated provider of private label and bulk distributed 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 belief that it will triple supply this growing season from their strategic Moroccan grower and the first shipment will be received the week of this news release; Organto’s belief that demand for fresh organic avocado will continue to grow globally; Organto’s belief that it is teamed with an expanding and progressive organic avocado supply partner; Organto’s belief that it will realize Q-4 revenues of $4.4 to $4.6 million and organic avocado will be a key contributor to this growth; 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.
