Organto Foods Inc., an integrated provider of value-added organic vegetables and fruits today announced that it has entered into an agreement with DLB Inpakbedrijf BV to provide receiving, packaging and other services for the European market and as a result has closed its receiving and packaging operation located in Amsterdam.
"The closure of our location in Amsterdam is part of our plan to resize our organization and move from a fixed cost to a variable cost model. By exiting our own packaging operations, we eliminate fixed costs and move to a more cost-efficient variable cost model, while at the same time, gaining access to a wider range of packaging and warehousing options, critically important as we continue to diversify and expand our product offering." commented Rients van der Wal, CEO of Organto Europe BV. "We are pleased to be working with DLB as they have the experience we require to cost-effectively serve our valued customer base".
DLB is an established third-party provider of a range of logistic services for fruits and vegetables, including quality management, receiving, sorting, repacking and warehousing. Based in Breda in the Netherlands, DLB have over 15 years of experience providing these services and use their extensive platform to provide a wide range of cost-effective solutions to a broad client base.
The move to a strategic third-party service provider is part of Organto's three-pronged strategy to increase revenue streams, expand and diversify supply relationships, and down size the organization by shifting from fixed to variable costs where possible. In this regard Organto has recently commenced sales into an expanded European distributor network, in addition to its historical sales into bricks and mortar retail, and has continued to expand its year-round supply capabilities with the addition of strategic growing relationships in Mexico, Peru, Argentina, Zimbabwe and Thailand. Organto continues to add new products and recently began selling organic blueberries, organic ginger, organic avocados and organic asparagus, available in both branded "I am Organic" and bulk distributed formats.
Organto also announced that it has entered into an agreement with a former service provider to settle outstanding claims for a combination of cash and 100,000 common shares. Final issuance of these shares is subject to acceptance of the TSX Venture Exchange.
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Organto
Email: info@organto.com
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