VANCOUVER, BC / ACCESSWIRE / September 22, 2020 / Organto Foods Inc. (TSXV:OGO)(OTC:OGOFF)(FSE:OGF) ("Organto" or "the Company"), an integrated provider of organic and value-added organic fruits and vegetables today announced the expansion of its organic ginger program and the addition of organic turmeric to its product portfolio.
Organto began distribution of organic ginger in late 2018 with supply from Peru, while simultaneously building distribution across its European customer base. In order to meet continued demand, Organto has added additional ginger supply from Brazil, to both expand and diversify its ginger product offering. While Peruvian ginger is recognized for its intensity of taste and smaller hand sizes, Brazilian ginger is recognized for its intensity of taste and generally larger hand sizes. The combination of Peruvian and Brazilian product geographically diversifies supply sources while at the same time expanding product variety and availability.
Together with the additional supply of ginger from Brazil, Organto has also added turmeric to its product portfolio. Supply of turmeric is being provided by the same strategic growing partner and will leverage existing supply chains to drive efficiencies and product availability. Tumeric is a member of the ginger family and it is commonly used as a spice and flavoring agent, and is known for a wide range of medicinal benefits including its anti-inflammatory and pain relief qualities combined with high antioxidant levels.
"We are pleased to expand our organic ginger program to Brazil and to add organic turmeric to our product portfolio." commented Rients van der Wal, Co-CEO of Organto and CEO of Organto Europe B.V. "Demand for both of these products has increased through the COVID-19 pandemic as consumers seek out the unique health benefits derived from their high antioxidant levels and anti-inflammatory properties. We believe the category will continue to grow and look forward to working with our supply partners and customer base to meet this demand." added Mr. van der Wal.
With the expansion of ginger and the addition of turmeric, Organto expects to increase weekly sales of these products to approximately CDN $40,000 to $60,000 by the end of the end of 2020, with the longer-term goal of building the ginger and turmeric category to CDN $5 million in annual revenues as the Company works to build out its portfolio1.
ON BEHALF OF THE BOARD,
Chair and Interim Chief Executive Officer
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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 branded, 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 demand for ginger and turmeric has increased through the COVID-19 pandemic as consumers seek out health benefits; Organto's belief that demand will continue to grow beyond the COVID-19 pandemic; Organto's belief that with the expansion in distribution weekly revenues from the sale of ginger and turmeric products will range between CDN $40,000 to CDN $60,000; Organto's goal to build the ginger/turmeric category to CDN $5 million in annual revenue over time; 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.
1 1 Forecast is based on shipping a variety of organic products with an average sales price ranging from CDN$2.05/kilo to $3.25/kilo of sold product. We anticipate sourcing products from numerous suppliers and countries including, but not limited to, Peru and Brazil.
SOURCE: Organto Foods Inc.
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