SALINAS, CA--(Marketwire - Jul 19, 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 produce supply contract which it expects will generate $5.3 million to $6 million in sales revenue.
"Organic Alliance is now beginning to capitalize on the grower relationships it has carefully cultivated in Mexico, Central and South America over the past two years," said Parker Booth, Organic Alliance Chief Executive Officer. "This is the first of several diversified organic produce supply contracts we plan to sign in the weeks and months ahead for our Winter/Fall Program, representing multiple product sources and revenue streams."
The contract is with a Northern Mexico-based, family-owned grower of certified organic fruits and vegetables with over ten 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 volume of certified organic green beans, grape tomatoes, cucumbers, and roma tomatoes. Harvesting, packing and shipping are expected to begin in November and run through April 2013. The name of the grower is not disclosed for competitive reasons.
The Company will market and distribute the organic produce to its U.S. supermarket and specialty grocer customer accounts. This produce will be packed in "Organic Alliance" branded cartons and retail packaging (see photo).
"The consumer demand is most definitely there," said Chris White, Organic Alliance Senior Vice President - Global Supply Chain. "The U.S. certified organic produce marketplace is constrained only by quality supply. Top grocery companies are eager to secure the new organic produce sources we are developing.
"By putting 'boots on the ground' abroad to develop these sources, and secure new supply contracts like the one we are announcing today, Organic Alliance is well positioned to lead the rapidly growing organic import boom from Mexico and other Latin American countries," Mr. White added. "It requires a unique combination of specialized skills to work directly with the growers on the ground. This is the reason our grocery and other major customers depend on Organic Alliance's expertise to meet the growing demand for organic."
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.