TORONTO, Apr 29, 2008 (PrimeNewswire via COMTEX News Network) --
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) today provided an update on key activities and recently completed expansions within the SunOpta Distribution Group ("the Group"). SunOpta entered the distribution of natural, organic and specialty foods, as well as natural health products (vitamins, supplements, health and beauty aids) in Canada in late 2002, and since that time has built and integrated a national platform that today positions the Group as the leading integrated distributor of these products in the Canadian market with revenues of approximately $250 million.
In order to meet growing market demands, the SunOpta Distribution Group's Western Grocery Division recently completed its relocation to a new 100,000 square foot, high cube distribution center located in Richmond, British Columbia, a suburb of Vancouver. This move consolidated three former warehouse locations and has been
complemented with the implementation of a tier one food distribution software package that provides an automated warehouse management system (WMS), paperless picking of orders via radio frequency (RF) technology and product scanning to control receiving, dating and inventory rotation within the warehouse. These features, coupled with automated demand forecasting for replenishment of inventories and lot control bring leading edge technology to the business, resulting in improved order accuracy and fill rates and reduced spoilage. The new larger distribution center, including scalable freezer storage and state of the art computer technology, will facilitate substantial future expansion as the industry continues to experience solid double digit growth rates.
The Group's Eastern Grocery Division located in Concord, Ontario, a suburb of Toronto, also recently completed an expansion of
its frozen storage capabilities, adding approximately 10,000 square feet within its existing 135,000 square foot distribution center footprint. This expansion positions the business for continued profitable growth as demand continues to increase in the frozen organic, natural and specialty foods category. The computer technology implemented in the Grocery West Division will be extended to the Eastern Grocery Division during the second half of 2008.
Recently the Group entered into an exclusive national distribution arrangement with Source Salba for the distribution of salba based products to both the food and vitamin/supplement categories. Salba is an ancient South American grain grown in a unique region of Peru at an elevation that is conducive to optimizing health benefits including high content of Omega 3's, antioxidants, vitamins, minerals, proteins and fiber. Source Salba
produces pure grain and ground grain SKU's targeted at the natural health products channel along with snack and breakfast functional food SKU's for the food channel. SunOpta Distribution's Purity Life and Grocery Divisions have both of these channels comprehensively covered and the Salba products have been well received in the marketplace.
In addition to these developments, the Distribution Group secured listings for approximately 175 additional SKU's with a national chain in Q1-08. The listings cover a full range of dry, frozen and refrigerated food products and natural health products, with incremental revenues expected to reach $10 million annually.
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food, supplements and health and beauty markets. The Company has three
business units: the SunOpta Food Group, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; Opta Minerals Inc. (TSX:OPM) (66.7% owned by SunOpta), a producer, distributor, and recycler of environmentally friendly industrial minerals; and SunOpta BioProcess Inc. which engineers and markets proprietary steam explosion technology systems for the bio-fuel, pulp and food processing industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.
The SunOpta Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3958
Forward Looking Statements
Certain statements included in this press release may constitute
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to references to the expected terms of the proposed private placement and business strategies, competitive strengths, goals, capital expenditure plans, business and operational growth plans and references to the future growth of the business. These forward looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its interpretation of current conditions, historical trends and expected future developments as well as other factors that the Company believes are appropriate in the circumstance. However, whether actual results and developments will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to; the company's ability to negotiate successfully the
specific terms of the private placement with investors, general economic, business or market risk conditions; competitive actions by other companies; changes in laws or regulations or policies of local governments, provinces and states as well as the governments of United States and Canada, many of which are beyond the control of the Company. Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.
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SOURCE: SunOpta Inc.
SunOpta Inc.
Jeremy N. Kendall, Chairman
Steve Bromley, President & CEO
Joseph Riz, Executive Vice President
John Dietrich, Vice President & CFO
Susan Wiekenkamp, Information Officer
905-455-2528, ext 103
susan.wiekenkamp@sunopta.com
www.sunopta.com
Lytham Partners, LLC
Investment Community Inquiries:
Joe Diaz
diaz@lythampartners.com
Robert Blum
Joe Dorame
602-889-9700
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