SunOpta Completes Organic Palm Oil Distribution Agreement
The Company announced that the SunOpta Grains and Foods Group has signed an agreement to distribute the Daabon Organic USA Inc. product line of organic shortenings, stearins and olein, produced under the FreshPress brand from organic palm oil.
24/10/08 SunOpta Inc. provided an update on the expansion of their healthy oils platform and expansion of their product offering with the completion of an agreement to distribute organic palm oil products.
The Company announced that the SunOpta Grains and Foods Group has signed an agreement to distribute the Daabon Organic USA Inc. product line of organic shortenings, stearins and olein, produced under the FreshPress brand from organic palm oil. These products are sold primarily to the bakery industry for cookies, breads, muffins, pastries and others and are expected to add approximately $2.0 million in profitable revenues in 2009. Palm oil products are considered to be healthful, cost efficient and have an extended shelf life over certain vegetable oils. These products raise good ``HDL'' cholesterol, are not genetically modified and are high in anti-oxidants.
The Company also provided an update on its joint venture with Colorado Mills of Lamar, Colorado to develop a 35 million pound oilseed refinery focused on expeller-pressed, trans-fat free sunflower oil and soy oil products and reported that operations are on target for a spring 2009 start-up. The additional capacity from this operation is expected to generate annualized revenues of approximately US$10 million and further position the Company as a strong player in the fast growing organic vegetable oils sector.
Allan Routh, President of the SunOpta Grains and Foods Group, commented, ``As we continually seek to expand the Companies healthy food solutions, the partnerships with both Daabon and Colorado Mills are key steps in this regard. The addition of palm fruit products which are kosher certified, certified organic and certified sustainable by ProForest is consistent with our objective to broaden our organic and natural vegetable oils business. These products further position the Company to respond to manufacturers needs in the snack, baking, sauces and dressing industries with a wide range of ingredients for organic and natural food-use applications.''
John McCloskey, Commercial Director, Daabon Organic USA, Inc., commented, ``The nature of our Organic Palm Oil business in the U.S. has changed and Daabon USA is at the point where we see a need to bring additional resources to the market. After a thorough investigation we concluded that the SunOpta Grains and Foods Group is the best choice for providing the additional service and support we see as necessary to develop the Daabon Organic Palm Oil business to the next level.''
