The Very Good Food Company Inc. Announces Logistics Partners and Provides Production Capacity Update
Vancouver, British Columbia--(Newsfile Corp. - August 11, 2020) - The Very Good Food Company Inc. (CSE: VERY) (FSE: 0SI) ("VGFC" or the "Company") is pleased to announce that it has signed an agreement with three third party logistics providers ("3PL") to increase shipping speed and reduce associated costs for its ecommerce store orders. The Company has also made improvements to its Victoria facility to increase throughput and position the facility for a near-term ramp up in production.
Third Party Logistics Providers
The Company has signed agreements with three strategically located third party logistics providers in North America. The new distribution hubs are expected to substantially reduce shipping costs, while also significantly improving speed of delivery to customers. The 3PL facilities are located in Ontario and on both U.S. coasts, with capabilities of reaching anywhere in North America in 2-3 days via ground transportation.
CEO Mitchell Scott stated: "The 3PL hubs were the next critical step in building our ecommerce business to be truly scalable. Previously, all shipping was centralized out of our Victoria facility, which delayed shipping times for customers and required cost-intensive air mail."
Production Capacity Increase
With increasing demand and the current backlog in orders, increasing production out of the Victoria facility has been a high priority item for the Company. As a result of continuous optimization of scheduling, labour and supply chain planning, production at the Victoria facility has stabilized at approximately 8,100 lbs per week and the Company is working to further increase capacity in the next few months with the goal of reaching up to 19,841 lbs per week.
The Company currently anticipates that construction at its proposed Vancouver facility will commence before the end of this year, and when complete will provide a significant increase in production capability. While the new facility is under construction, the Victoria facility will undergo further capacity improvements including through the use of new equipment currently being sourced by the Company, to provide near-term production increases.
About The Very Good Food Company
The Very Good Food Company Inc. is an emerging plant-based food technology company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives. Our mission is to employ plant-based food technology to create products that are delicious while maintaining a wholesome nutritional profile. To date we have developed a core product line under The Very Good Butchers brand.
For further information, please contact:
Chief Executive Officer and Director
Corporate Communications and Investor Relations
Phone: +1 855-472-9841
Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "proposed", "expects", "intends", "may", "will", and similar expressions. Forward-looking information contained or referred to in this news release includes, but is not be limited to the benefits the Company expects to derive from the 3PL facilities including lower shipping costs and increased shipping speeds, the timing for commencement of construction of the proposed Vancouver facility and the Company's ability to achieve further production capacity increases at its Victoria facility. .
Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: negative cash flow and future financing requirements to sustain operations, dilution, limited history of operations and revenues and no history of earnings or dividends, competition, economic changes and the impact of and risks associated with the ongoing COVID-19 pandemic. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
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