Organic Alliance Signs $2.2 Million Produce Supply Contract; Expects New Grocer Customer Agreements in Q4, Builds ORGC Brand Value
(firmenpresse) - SALINAS, CA -- (Marketwire) -- 09/20/12 -- Organic Alliance, Inc. (OTCQB: ORGC), a global grower and marketer of fresh, organic and Fair Trade fruits and vegetables, today announced it has signed an organic produce supply contract -- with renewal options -- which it expects will generate at least $2.2 million in sales revenue over the next twelve months. This brings to $11.5 million the total value of new supply contracts announced in just the past two months, with several more expected to be signed this year.
This contract is yet another example of the Company's investment in growers of top quality produce, and with it further deploys Organic Alliance branded labels, bulk and retail packaging -- to showcase its superior product offerings in the U.S. market. The Company has been collaborating with this grower, along with several others, to become Fair Trade certified as the Company prepares to launch its Fair Trade produce initiative early in the fourth quarter to a strong, vast and demand driven U.S. marketplace.
Separately, Organic Alliance also noted it is making excellent progress opening up new customer relationships with U.S. major, regional and specialty grocers, and it is confident it will begin shipping and providing our products to those new grocer customer relationships in the fourth quarter.
Parker Booth, Organic Alliance Chief Executive Officer, said, "As our produce volume builds, and we get closer to marketing our own Fair Trade certified produce, we are increasingly well positioned for much higher sales to the largest and most prestigious major, regional and specialty grocers in the U.S.
"We are proud of the growers with whom we invest, and the superior quality of the produce we sell," he added. "Accordingly, we recently completed a packaging project this summer in which we now source -- directly -- nearly 100% of 'Organic Alliance' branded labels, bulk and retail packaging at a competitive unit price to build our brand value."
The contract announced today is with a Central Mexico-based, family-owned greenhouse grower of fruit and vegetables with more than ten years of experience growing top quality produce. With the grower's outstanding produce quality, and reliable year round supply, the Company worked closely to develop and redirect the grower's production into the U.S. marketplace. All Organic Alliance greenhouse growers utilize advanced agricultural science to grow produce of exceptionally high quality, taste and texture within a carefully controlled environment unaffected by traditional seasonality.
Under the contract terms, the grower will supply the Company with a specified weekly, year-round volume of organic colored bell peppers and heirloom tomatoes. Harvesting, packing and shipping of these Organic Alliance branded bulk and retail packages are expected to begin with the start of the October harvest, and will run year round for one year. The name of this grower is not disclosed for competitive reasons.
Most of the recently announced supply contacts are slated to begin produce delivery in early October, and will positively impact the Company's revenue starting with the fourth quarter. Similar to the previous supply contracts Organic Alliance has announced in the third quarter, this contract contains renewal provisions that Organic Alliance believes offer strong potential to expand acreage, crop variety and volumes.
Growing, certifying, importing and marketing Fair Trade certified fruits and vegetables is a major component of the Company's business plan and is but one catalyst to drive strong revenue and margin growth, in 2013, in the $1.5 billion U.S. Fair Trade marketplace.
Organic Alliance, Inc. is a global grower and marketer of organic, Fair Trade and conventional fresh food products. By establishing collaborative relationships with key growers, the Company has built a vertically integrated supply chain through an alliance of growers that enables it to support its customers with an increasing variety of certified sustainable products, sensible pricing, steady supply and inspiring multi-media stories from our many producing communities. For more info, visit: .
This news release contains forward-looking statements which are based on current expectations, estimates and projections about our business based, in part, on assumptions made by our management. Actual results, levels of activity, performance or achievements could differ materially from those discussed or implied in the forward-looking statements as a result of various factors, including future economic, competitive, regulatory, and market conditions, future business decisions, changes in the supply and demand of the products we sell, our relationships with our existing suppliers, our success in finding additional supply sources, our ability to attract and retain customers, and the risks and other factors discussed in our Form 10-K for the year ending December 31, 2011 or in the other documents we file with the Securities and Exchange Commission. In light of the significant uncertainties inherent in such forward-looking statements, they should not be regarded as a representation that our objectives or plans will be achieved, and they should not be relied upon by investors when making an investment decision. Words such as "believes," "anticipates," "expects," "intends," "may," "forecasts, "foresees," and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Similarly, statements in this release that describe our business strategy, outlook, objectives, plans, intentions or goals are forward-looking statements. We undertake no obligation to update or revise any forward-looking statements for events or circumstances after the date on which such statement is made except as required by law.
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Frank Benedetto
Mirador Consulting
561.989.3600
Parker Booth
President & Chief Executive Officer
831.240.0295
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Datum: 20.09.2012 - 12:29 Uhr
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