Under the terms of the agreement, Organto has exclusive rights for organic ginger from this supplier for distribution in the EU 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, CEO of Organto Europe BV. "Demand for organic ginger continues to grow globally due its popularity as a spice and flavoring agent, combined with an impressive array of unique health benefits largely due to its antioxidants 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 UK and the Netherlands began in the last week of August 2018. Approximately 20,000 kgs were distributed with a sales value of approximately $50,000 CDN 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 CDN $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 fruits and vegetables product offering. Organto continues to increase its supply capabilities via 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 the Organto "I am Organic" branded products as well as private label offerings.
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