SunOpta to Produce Organic Soymilk in California
SunOpta believes that its vertically integrated soymilk model is unique and integrated from soy bean sourcing through to packaged products, ensuring SunOpta's control of quality and organic certification and providing direct traceability from the farm gate to the retail shelf.
26/02/09 SunOpta Inc. announced that the SunOpta Grains and Foods Group expects to commence commissioning of a new soy processing and aseptic packaging operation located in Modesto, California in March 2009 with the facility on schedule for commercial production late in the second quarter of 2009.
The Modesto, California facility will produce and package organic aseptic soymilk and other beverages, plus expand the Company's product offering into other alternative beverage and aseptically packaged product categories. Strategically, it is anticipated that this additional facility will enable SunOpta to meet continued growth in demand and geographically leverage its vertically integrated soymilk model, providing its customers with a cost effective and quality product, while at the same time driving social, economic and environmental sustainability via geographic production in close proximity to consumers. The new Modesto facility, when combined with the Company's aseptic packaging facility located in Alexandria, Minnesota, is expected to bring total annual production capacity to approximately 250 to 300 million quarts of soymilk and other beverages per year once fully operational.
At the same time the Company announced that it has commenced production of an innovative and proprietary organic aseptic soymilk for an international food service restaurant company utilizing the capabilities of the Company's vertically integrated soymilk model. Based on a recently finalized supply agreement, SunOpta will supply organic soymilk for this customer's stores in the United States and Canada, with full product implementation expected over the first half of 2009. Once fully implemented, it is expected that this new business will represent incremental revenues to SunOpta of approximately $15 to $20 million annually. Production is initially being supplied from existing soy operations and will be expanded to include production from SunOpta's new soy processing and packaging facility in Modesto, California. The production of this product will utilize organic soybeans produced by North American organic growers who are committed to environmentally sound and sustainable farming practices.
SunOpta believes that its vertically integrated soymilk model is unique and integrated from soy bean sourcing through to packaged products, ensuring SunOpta's control of quality and organic certification and providing direct traceability from the farm gate to the retail shelf. Soy beans are initially sourced and processed at SunOpta's main grains handling facilities in Hope, Minnesota and Moorhead, Minnesota and are also processed at other third party locations. The processed soy beans are then delivered to SunOpta's ingredient processing plants in Alexandria, Minnesota, Heuvelton, New York and Afton, Wyoming where they are converted into liquid concentrated soy base and other soy based food ingredients. The concentrated soy base is then transported to SunOpta's aseptic packaging facilities and third party co-pack partners for blending, packaging and subsequent delivery to our customers.
Allan Routh, President of the SunOpta Grains and Foods Group commented, "We are very pleased to be on schedule with our new state of the art processing and packaging facility and to have been selected as a supplier for this international food service restaurant company. Via our vertically integrated organic soymilk model we will be able to provide a proprietary, great tasting soymilk while at the same time driving tangible social and environmental benefits via reduced packaging waste and sustainable organic agricultural practices."
