Organto Expands Sourcing and Distribution of Organic Ginger and Adds Organic Tumeric

Rhea-AI Summary

Organto Foods Inc. announced the expansion of its organic ginger program and the introduction of organic turmeric to its portfolio. The company, which began distributing organic ginger from Peru in 2018, is now sourcing ginger from Brazil to meet increased demand. This diversification aims to enhance product availability and variety. Additionally, turmeric will be supplied by the same partner, leveraging existing supply chains. Organto anticipates weekly sales for these products to reach CDN $40,000 to $60,000 by year-end and a long-term goal of CDN $5 million in annual revenues.

Positive

• Expansion of organic ginger supply to include Brazil enhances product variety.
• Introduction of organic turmeric to the product portfolio diversifies offerings.
• Expected weekly sales growth to CDN $40,000 - $60,000 by end of 2020.
• Long-term revenue goal of CDN $5 million for ginger and turmeric products.

Negative

• None.

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,

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.

For more information contact:

Investor Relations
604-634-0970
1-888-818-1364
info@organto.com

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. 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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https://www.accesswire.com/607063/Organto-Expands-Sourcing-and-Distribution-of-Organic-Ginger-and-Adds-Organic-Tumeric

FAQ

What recent announcement did Organto Foods (OGOFF) make regarding its product offerings?

Organto Foods announced the expansion of its organic ginger program and the addition of organic turmeric to its product portfolio.

How does Organto plan to meet the demand for organic ginger and turmeric?

The company plans to diversify its ginger supply by sourcing from Brazil and leverage existing supply chains for turmeric.

What are the expected sales figures for Organto's ginger and turmeric products by the end of 2020?

Organto expects weekly sales for these products to be between CDN $40,000 to $60,000 by the end of 2020.

What is Organto's long-term revenue goal for ginger and turmeric products?

Organto aims to build the ginger and turmeric category to CDN $5 million in annual revenues.