Karat Packaging Leases Additional Warehouse in Southern California To Further Enhance Distribution Efficiencies and Accommodate Growth
Rhea-AI Summary
Karat Packaging (NASDAQ: KRT) has signed a lease for a new 187,000 square-foot warehouse and distribution center in Chino, California, strategically located near its headquarters. The facility will nearly double the company's current distribution capabilities in Chino, enhancing inventory management and delivery times.
The expansion will enable Karat to:
- Nearly double its inventory capacity in California
- Add approximately 500 new SKUs of paper products
- Improve operating efficiencies
- Support growth ahead of summer peak season
- Expand third-party logistics services in Southern California
- Increase wallet share with existing customers
- Service more new accounts
Positive
- 187,000 sq ft warehouse lease doubles distribution capacity
- Addition of 500 new paper product SKUs
- Strategic location near headquarters improves operational efficiency
- Enhanced capacity for third-party logistics services
- Expanded capability to service new accounts
Negative
- Additional lease expenses will increase operating costs
News Market Reaction
On the day this news was published, KRT gained 0.34%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
CHINO, Calif., March 04, 2025 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (NASDAQ: KRT) (“Karat” or the “Company”), a specialty distributor and manufacturer of disposable foodservice products and related items, today announced it has signed a lease agreement for a 187,000 square-foot warehouse and distribution center in Chino, California.
This facility is in close proximity to the Company’s headquarters and nearly doubles the size of its current distribution capabilities in Chino. It will increase needed capacity to support growth and improve inventory management, ensuring faster delivery times.
“The new warehouse supports our growth strategy, giving us capacity ahead of our summer peak season to nearly double our inventory in California, and to add approximately 500 new SKUs of paper products, while further enhancing operating efficiencies,” said Alan Yu, Chief Executive Officer. “The expansion will enable us to grow wallet share with existing customers and service an increasing number of new accounts, as well as expand our third-party logistics services in Southern California.”
About Karat Packaging Inc.
Karat Packaging Inc. is a specialty distributor and manufacturer of a wide range of 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 Statement
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, accommodating growth and enhancing efficiencies, 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 most recent Annual Report on Form 10-K for the year ended December 31, 2022 and our other public filings made with the Securities and Exchange Commission (SEC). Copies are available on the SEC’s website at www.sec.gov. Karat 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 / Roger Pondel
310-279-5980
karat@pondel.com
FAQ
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