Recently Acquired Subsidiary Realizing Strong Revenue Growth
VANCOUVER, BC and BREDA, THE NETHERLANDS / ACCESSWIRE / April 7, 2021 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) ('Organto' or 'the Company'), a leading provider of organic and value-added organic fruits and vegetables today provided an update on the operations of Fresh Organic Choice BV ('Fresh Organic Choice'), its wholly-owned subsidiary acquired in January, 2021.
Since the acquisition, our commercial teams have successfully aligned go-to-market strategies and expanded the number of key European markets offering our products. Revenues for March 2021 were the highest in Fresh Organic Choice's history, driven by strong market demand and the initial impact of a number of new customer wins. Fresh Organic Choice branded organic fresh cut herbs have recently been listed with a fast-growing UK-based online supermarket serving approximately 625,000 active customers, with plans to expand the current herb product offering to include other Organto products such as organic asparagus. In addition, bulk herbs have been listed with a leading German organic retailer and wholesale distributor serving approximately 1,400 specialty commercial locations. Together with the commercial integration, work continues on expanding supply sources to meet expected category growth, and integrating back-end administrative and financial systems and processes.
'We are extremely pleased with the progress of Fresh Organic Choice and continue to believe that fresh cut organic herbs are a great fit with our fast-growing fresh organic fruits and vegetables platform. We are in the initial stages of our commercial and operational integration and are making solid progress. We remain confident that by combining our collective strengths we will be able to profitably expand the fresh herbs category with the goal of building out a profitable category with annual revenues of approximately CDN $10 million in the years to come.' commented Steve Bromley, Chair and Co-CEO and Rients van der Wal, Co-CEO and CEO of Organto Europe BV.
Herbs are recognized for their intense flavor and impressive nutritional profiles, including high levels of vitamins, essential minerals, antioxidants, fiber and antimicrobial properties, all considered important ingredients to boosting immunity and part of a healthy diet. Market demand for organic herbs remains strong and is expected to continue to increase.
Fresh Organic Choice utilizes an asset-light business model to provide of a full range of year-round fresh cut organic herbs, marketed under the Fresh Organic Choice brand, with sales throughout Europe. Fresh Organic Choice's fresh cut packaged herbs portfolio includes mint, oregano, basil, chives, parsley, dill, thyme, rosemary, sage, tarragon and others, which are sold in a wide range of branded packaged and bulk formats. Product is sourced primarily from strategic local growers in the Netherlands, Germany, Spain, Italy, Germany and Portugal, with additional sourcing programs being developed in Tunisia and Ethiopia.
ON BEHALF OF THE BOARD,
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.
For more information contact:
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 the combination with Fresh Organic Choice will expand the Company's product portfolio; Organto's belief that fresh cut organic herbs are a great fit with Organto's existing product portfolio; Organto's belief that they are making great progress in the commercial and operational integration of Fresh Organic Choice; Organto's belief that demand for fresh cut organic herbs will continue to grow due to their intense flavor profiles and health benefits to a category with profitable revenue potential of at least CDN $10 million; 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.
View source version on accesswire.com: