Karat Packaging Announces Expansion of Its Logistic Services

Rhea-AI Summary

Karat Packaging Inc. (NASDAQ: KRT) is expanding its logistics services by adding ten fully electric Tesla Semi trucks to its fleet. This move aims to enhance its third-party logistics (3PL) offerings and signifies a commitment to environmentally friendly solutions. Currently operating 86 trucks, Karat Packaging serves approximately 100 customers mainly in California, with plans for geographical expansion. The new trucks are expected to improve efficiency, reducing transport costs with a range of up to 500 miles per charge.

Positive

• Expansion of logistics services with 10 Tesla Semi trucks enhances 3PL offerings.
• Investment in electric trucks aligns with environmentally friendly initiatives.

Negative

• None.

-- Company to Add Ten Fully Electric Tesla Semi Trucks to Fleet --

CHINO, Calif., Dec. 21, 2021 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (NASDAQ: KRT), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced it plans to expand its logistic services business geographically and that it has placed an order for 10 Tesla Semi trucks.

Karat Packaging currently has 86 trucks and trailers and provides third-party logistic (3PL) services to about 100 of its customers in California. The Company is planning to expand its logistic offerings geographically from its existing distribution centers in Texas, New Jersey and South Carolina in those regions, as well as further expansion in California.

“We are excited to incorporate alternative-fuel trucks into our fleet. This purchase represents our commitment to continue investing in environmentally friendly solutions,” said Alan Yu, chairman and chief executive officer. “Adding to Karat Packaging’s competitive advantage and the Company’s distinguishing characteristics, we are pleased to offer additional 3PL services to new and existing customers, particularly during the current supply chain environment.”

Tesla announced its newest innovation in transportation, Tesla Semi, a 100% battery-powered Class 8 semi-truck, in late 2017. The trucks are expected to have a range of up to 500 miles on a single charge, deliver a far better experience for drivers and significantly reduce the cost of cargo transport.

About Karat Packaging Inc. 
Karat Packaging Inc. is a specialty distributor and manufacturer of a wide range of environmentally friendly, disposable foodservice products and related items, primarily used by national and regional restaurants and in foodservice settings throughout the United States. Its products include food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves and other products. The company’s eco-friendly Karat Earth® line offers quality, sustainably focused products that are made from renewable resources. Karat Packaging also offers customized solutions, including new product development and design, printing, and logistics services. To learn more about Karat Packaging, please visit the company’s website at www.karatpackaging.com.  

Caution Concerning Forward-Looking Statements 
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including, but not limited to, the expansion of the Company’s logistic services and delivery of the new Tesla Semi trucks, are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the Risk Factors section of the company’s registration statement for the initial public offering filed with the SEC on April 14, 2021. Copies are available on the SEC’s website at www.sec.gov.  Karat Packaging undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. 

Investor Relations and Media Contacts: 

PondelWilkinson Inc.         
Judy Lin Sfetcu/Roger Pondel 
310-279-5980         
karat@pondel.com  

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/19604147-6126-4601-b19a-73138edc62b2

FAQ

What recent announcement did Karat Packaging make regarding its fleet?

Karat Packaging announced it will add ten fully electric Tesla Semi trucks to its fleet.

How many trucks does Karat Packaging currently operate?

Karat Packaging currently operates 86 trucks and trailers.

What are the expected benefits of the Tesla Semi trucks for Karat Packaging?

The Tesla Semi trucks are expected to reduce cargo transport costs and improve operational efficiency.

What is Karat Packaging's stock symbol?

The stock symbol for Karat Packaging is KRT.

What is the purpose of adding Tesla Semi trucks to Karat Packaging's fleet?

The addition aims to expand logistics services and emphasize the company's commitment to environmentally friendly solutions.