Canadian company SunOpta has said that it has completed the transfer of its three organic and specialty food distributors into its 135,000 square foot distribution centre in Toronto.
As a result of this amalgamation, SunOpta anticipates annualised cost savings of US$2.0m, all of which will be achieved by year-end. In addition, since SunOpta can now offer national distribution in Canada, the company has added a number of new product lines, which it expects to add $7.0m of annual revenue by year-end. The company expects that these programmes will have a beneficial impact on its fourth-quarter results.
“We are pleased to complete this strategic consolidation of operations. This consolidation will yield significant cost savings and it will provide us the ability to increase the number of product lines distributed in the Canadian market, which we anticipate will accelerate top-line growth and provide a good deal of operational leverage. We are dedicated to improving operational efficiency throughout all of our business segments with the goal of driving improved bottom-line results in the most responsible manner possible,” said Jeremy N. Kendall, chairman and chief executive officer of SunOpta.