Organto Expanding Distribution of Organic Asparagus
Year-Round Supply Chain Refined
VANCOUVER, June 19, 2019 /CNW/ - 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 begun expanding distribution of organic asparagus to European markets, leveraging its year-round supply chain that has been developed and refined over the past number of months.
With the pending conclusion of the local supply season in Europe, distribution of Organto sourced organic asparagus is being expanded to include a diverse range of customers located in the United Kingdom, Spain, France, Denmark and Sweden, in addition to existing sales in the Netherlands and with an on-line retailer. With this expansion in distribution, weekly volumes are expected to range between 4,000 – 6,000 kilograms representing weekly revenues of approximately CDN$36,000 to CDN$66,000 1.
As supply expands from existing and new supply partners, Organto plans to continue adding new points of distribution for the product throughout Europe. Organto's current year-round supply program utilizes strategic growers located in Peru and Argentina, with current plans to expand supply from sources in Mexico over the course of 2019.
"We are very pleased to be expanding distribution of our organic asparagus offering throughout Europe." commented Rients van der Wal, CEO of Organto Europe BV. "Demand for organic asparagus continues to grow globally and we are excited to have established these new points of distribution in hand with the refinement and expansion of our supply chain."
Demand for organic asparagus market continues to grow as consumers seek medicinal benefits provided from asparagus. Asparagus is considered medicinal because it aids in maintaining cholesterol and blood pressure levels. It has high vitamin K content that promotes blood clotting and it contains more than 1gm of soluble fiber per cup that helps in lowering the risk of heart diseases. Asparagus also has good anti-inflammatory properties and high levels of antioxidants, both of which help in reducing the risk of heart diseases.
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 year-round organic asparagus supply capabilities and plans to continue to develop and expand these capabilities; plans to continue adding new points of distribution; growing demand for asparagus as consumers seek medicinal benefits; 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.
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The CDN$36,000 to CDN$66,000 weekly forecast is based on shipping between 4,000 and 6,000 kilos of fresh asparagus per week 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 Foods Inc.
Investor Relations: 604-634-0970, 1-888-818-1364, [email protected]
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