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Organto Foods Inc
Symbol OGO
Shares Issued 134,533,133
Close 2018-09-04 C$ 0.07
Market Cap C$ 9,417,319
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Organto Foods secures organic ginger supply from Peru

2018-09-06 09:20 ET - News Release

Mr. Steve Bromley reports

ORGANTO BEGINS SALES OF ORGANIC GINGER AND EXPANDS SUPPLY BASE

Organto Foods Inc. has entered into a strategic supply relationship with an established supplier of organic ginger located in Peru, expanding its year-round organic fruit and vegetable product offering.

Under the terms of the agreement, Organto has exclusive rights for organic ginger from this supplier for distribution in the European Union market. The supplier, an established collective of six growers located in Peru, has extensive experience in the production of organic ginger and other organic vegetables, and it is the intention of both parties to expand beyond ginger into other product offerings.

"We are pleased to add organic ginger to our organic fruits and vegetables sourcing and supply platform," commented Rients van der Wal, chief executive officer of Organto Europe BV. "Demand for organic ginger continues to grow globally due its popularity as a spice and flavouring agent, combined with an impressive array of unique health benefits largely due to its anti-oxidants and anti-inflammatory properties. We are excited to work with our new supply partner to capture this market opportunity and grow distribution of organic ginger and the I am Organic brand."

Sales to customers in Spain, the United Kingdom and the Netherlands began in the last week of August, 2018. Approximately 20,000 kilograms were distributed with a sales value of approximately $50,000 and the program is expected to expand as supply increases and other markets are added. Organto expects potential revenues from the sale of organic ginger and related products to grow to in excess of $5-million annually.

The addition of organic ginger to Organto's product catalogue is part of Organto's strategy to expand its value-added organic fruit and vegetable product offering. Organto continues to increase its supply capabilities through the addition of expanded supplier relationships focused on organic soft, tropical and exotic fresh fruits and other organic vegetables in order to diversify its revenue streams beyond just high-value organic vegetables. Organto plans to continue to establish supply relationships with strategic growers in key supply markets in order to expand market presence and develop opportunities for Organto's I am Organic-branded products as well as private label offerings.

About Organto Foods Inc.

Organto is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO (genetically modified organism) fruit and vegetable products serving a growing socially responsible and health-conscious consumer around the globe. Operations are currently located in Guatemala, the Netherlands and the United States as well as third party supply from a variety of regions, with plans to continue to expand supply capabilities through strategic third party growers and processors in Africa, Mexico and other growing regions.

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