Organic Ingredients Inc. announced today closure of a deal that will ease industry worries elicited by last year’s U.S. lemon shortage. Demand for fresh pack lemons in the last season caused an approximate 50% decrease in organic lemon availability for juice processing.
The largest supplier of organic citrus juices in the U.S., Organic Ingredients signed an exclusive three-year agreement with Gerald McDonald & Co. Ltd. of the U.K. and Agr. E.S. of Sicily, Italy. The agreement grants O.I. exclusive marketing rights to all organic lemon juice concentrate produced by Agr. E.S. for customers in all of North America, and several Pacific Rim countries.
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“Our goal was to secure a consistent source of organic lemon products for our customers worldwide, especially in the wake of last year’s shortage,” said Joseph Stern, President of Organic Ingredients, the industrial division of Spectrum Organic Products (NASDAQ:SPOP). “We’re very pleased with this new deal, as it will supplement our California production and guarantee a consistent supply despite the increasing demand for organic lemon juice as an ingredient.”
Lemonade won’t be the only thing tasting sweeter for Organic Ingredients over the next three years. O.I. also closed a private joint venture agreement to produce organic apple juice concentrate with Northwest Packing Co., and renewed an exclusive three-year supply agreement for the production of organic white grape juice concentrate with Canandaigua Concentrates. White grape juice concentrate is the most popular fruit-based sugar alternative in the natural food industry.
The deal with Northwest Packing Co. strengthens O.I.’s position as a leading supplier of organic fruit, vegetable, and non-genetically modified oil-based ingredients in the United States. In addition to its U.S. customers, O.I. manufactures and sells ingredients to Japan, Canada, Australia, New Zealand, Korea and Europe. O.I. produces ingredients in over 15 countries throughout the northern and southern hemispheres.
Organic Ingredients is a division of Spectrum Organic Products Inc. Spectrum is a publicly traded corporation on the NASDAQ under SPOP.
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By GlobalData“Safe Harbor” Statements under the Private Securities Act of 1995: The statements contained in this release, which are not historical facts, are forward-looking statements that are subject to risk and uncertainties that could cause actual results to differ materially from those set forth or implied by the forward-looking statements. These risks are described in Spectrum Organic Products Inc. Securities and Exchange Commission filings.
