SALINAS, CA--(Marketwire - Jul 26, 2012) - 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 and conventional produce supply contract -- with renewal options -- which it expects will generate $1.75 million in sales revenue.
The contract is with a Central Mexico-based, family-owned greenhouse grower of certified organic vegetables with nearly eight years of experience growing top quality produce for the U.S. market. Under the contract terms, the grower will supply Organic Alliance with a specified weekly year round volume of certified organic red, orange and yellow bell peppers (see photo). Harvesting, packing and shipping of Organic Alliance branded bulk and retail packages are expected to begin in September 2012 and to run through December 2013. The name of this grower is not disclosed for competitive reasons.
Similar to the seven-month, $5.3 million supply contract the Company announced earlier this month, this contract contains renewal provisions that the Company believes offers strong potential to expand acreage and crop variety and volumes.
The contract continues to diversify the Company's increasing organic produce supply both geographically as well as by produce variety. This grower's supply is greenhouse grown, using the state of the art in agricultural science to produce delicious vegetables with the most desirable flavor and texture for which organic vegetables are known.
Chris White, Organic Alliance Senior Vice President - Global Supply Chain, said, "Mexico is an ideal location for developing high quality, year round organic supply as it brings together a culture and climate highly favorable to the special care our farmers must take to grow our organic produce -- without pesticides, herbicides, fungicides, conventional fertilizers or genetically modified seeds.
"Developing a genuine, collaborative relationship with these growers also takes special care, and insight into their concerns and that of their community," he said. "We have been developing this relationship for over a year, and have been collaborating on certification since February. We believe the foundation is set for a long-term partnership with the potential to substantially increase this contract's volume over the next eight to twelve months."
About Organic Alliance
Organic Alliance, Inc. is a global grower and marketer of organic, Fair Trade and conventional fresh food products to the market place. 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: www.organicallianceinc.com.
Safe Harbor Statement
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.