SunOpta initiatives increase organic sourcing power

by Jeff Gelski
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SunOpta Global Organic Ingredients (S.G.O.I.) has entered into a series of agreements to expand its global organic supply capabilities, primarily in Central America, SunOpta Inc., Brampton, Ont., said Aug. 26.

S.G.O.I., a division of the SunOpta Fruit Group, has acquired a number of existing supplier and customer relationships and the rights to the Pure Nature Organics frozen fruit and vegetable registered trademark. S.G.O.I. also has entered into an ongoing brokerage and consulting services agreement.

Entering into arrangements with organic suppliers and processors, primarily in Central America, will allow for the development of organic supply of such produce items as broccoli, green beans, edamame and asparagus. S.G.O.I. also has assumed a number of existing customer contracts and relationships in North America for supply of organic private label and branded frozen vegetable products.

S.G.O.I. estimates the new business will generate incremental revenues of about $5 million to $7 million in the first year.

"These agreements allow S.G.O.I. to act upon a key strategic initiative by not only diversifying its supply source for organic I.Q.F. (individually quick-frozen) vegetables and fruits, but also allowing the group to get much closer to the farm gate in a rapidly developing and reputable region for the procurement of commodities which are in global short supply," said Joseph Stern, president of S.G.O.I.

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