News release from 9/20/2012 and 8/9/2012
SALINAS, CA--(Marketwire - Sep 20, 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 -- with renewal options -- which it expects will generate at least $2.2 million in sales revenue over the next twelve months. This brings to $11.5 million the total value of new supply contracts announced in just the past two months, with several more expected to be signed this year.
This contract is yet another example of the Company's investment in growers of top quality produce, and with it further deploys Organic Alliance branded labels, bulk and retail packaging -- to showcase its superior product offerings in the U.S. market. The Company has been collaborating with this grower, along with several others, to become Fair Trade certified as the Company prepares to launch its Fair Trade produce initiative early in the fourth quarter to a strong, vast and demand driven U.S. marketplace.
SALINAS, CA--(Marketwire - Aug 9, 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 a conventional produce supply contract -- with renewal options -- which it expects will generate $2.35 million in sales revenue.
This contract brings to $9.3 million the total value of new supply contracts announced by Organic Alliance in just the past 30 days, with several more in the pipeline expected to be signed this year.
The contract is with a central Mexico-based, family-owned greenhouse grower of conventional tomatoes and other produce with more than ten years of experience growing top quality produce for the U.S. market. All Organic Alliance greenhouse growers utilize advanced agricultural science to grow produce of exceptionally high quality, taste and texture within a safe and carefully controlled environment.
Under the contract terms, the grower will supply Organic Alliance with a specified weekly, year-round volume of on-the-vine, beefsteak and grape tomatoes (see photo). Harvesting, packing and shipping of these Organic Alliance branded bulk and retail packages are expected to begin with the October harvest and run for one year through September 2013. The name of this grower is not disclosed for competitive reasons.
Similar to the two previous supply contracts Organic Alliance announced last month, this contract contains renewal provisions that Organic Alliance believes offer strong potential to expand acreage, crop variety and volumes. Further, Organic Alliance elected to work closely with this grower for its qualification to become a strategic partner for Fair Trade development initiatives.
Growing, certifying, importing and marketing Fair Trade certified fruits and vegetables is a key component of the Company's 2013 business plan as just one catalyst to drive strong revenue and gross margin growth. Apart from the initial market leaders, chocolate, coffee and tea, Fair Trade foods remains a nascent, largely untapped market niche today, that is seeing extremely strong and rising demand from both grocery companies and consumers. Supply remains limited due to the numerous and complex certification requirements -- a process in which Organic Alliance has extensive experience.
"Organic Alliance is rapidly building a diversified, solid foundation of supply sources and revenue with major near and long term growth potential," said Parker Booth, Organic Alliance chief executive officer. "Every supply source we have contracted, and all those in our supply development pipeline, are selected for their strategic value to offer strong upside for wider crop variety and exponentially increasing crop volume.
"As we capture market share and our supply volumes grow, we believe the level of interest in Organic Alliance from the largest and fastest growing U.S. supermarket and specialty grocers will grow as well," Mr. Booth added.
SALINAS, CA--(Marketwire - Jul 12, 2012) - Organic Alliance, Inc. (OTCQB: ORGC), a global grower, shipper and distributor of fresh foods focusing on organic and Fair Trade agriculture, today issued the following Special Letter to Shareholders.
Dear Shareholder:
It is my privilege to report that Organic Alliance Inc. (ORGC) has reached the critical mass needed to solidify its market position in the $29.2 billion U.S. natural, organic and Fair Trade foods market.
Today, we continuously stock our products on the shelves of leading national grocery chains including Safeway, Kroger and Trader Joes with others coming into our pipeline. These expanding relationships, and our increasing organic, Fair Trade and conventional product offerings, now serve as the foundation for the robust growth we anticipate near and long term. These products currently include mangoes, tomatoes, cucumbers, zucchini, green beans, squash, apples, pears and bell peppers.
Based upon supply contracts in place, we expect a substantial step up in revenue and profit margins -- beginning in the fourth quarter of 2012 -- with additional dramatic increases in 2013. Our target is to become cash flow positive in the first quarter of 2013. Full letter
