The Very Good Food Company Announces Achievement of Production Target, Increase in Ecommerce Order Fulfillment and Expansion into Sobeys Retail Network
Vancouver, British Columbia--(Newsfile Corp. - January 5, 2021) - The Very Good Food Company Inc. (CSE: VERY) (OTCQB: VRYYF) (FSE: 0SI) ("VERY" or the "Company"), is pleased to announce that the Victoria Facility has met its production target of 20,000 lbs per week on average; an 82% capacity increase from October 2020. In addition to this operational achievement, VERY has increased the fulfillment of ecommerce orders to an average of 1800 orders per week, an increase of 100% from September, with the help of its new 3PL logistics partner. VERY also recently expanded its distribution into the Sobeys retail network with the impending launch of The Very Good Butcher's products into Farm Boy retail stores throughout Eastern Canada.
Increased Victoria Facility Production
VERY is pleased to announce that production capacity at our Victoria Facility has increased 82% to an average of 20,000 lbs per week from the previously reported capacity of 11,000 lbs per week in October 2020; an acceleration of our operational plan. The significant increase in production capacity is the result of the success of our ongoing continuous improvement projects as well as our new Canadian 3PL logistics partnership ("3PL partnership"). The 3PL partnership allows for the fulfillment of our ecommerce orders at a third party distribution centre; increasing the production footprint at the Victoria Facility. This 3PL partnership has also enabled us to reduce ecommerce shipping times down to one to two weeks, which will allow for a higher volume of fulfilled orders per month. As a result, an average of 1,800 ecommerce orders were fulfilled weekly in December 2020 compared to 900 online orders weekly in September 2020 prior to the beginning of the partnership. In the future, this new logistics partner will also perform wholesale order fulfillment and transport our products to our distribution partners in both Canada and the United States.
Expanded Distribution in Sobeys Network
VERY is pleased to announce that it has further expanded its wholesale distribution into Eastern Canada and The Very Good Butchers' products will soon be available at Farm Boy retail stores; part of the Sobeys network. With over 30 locations in Eastern Canada, Farm Boy is a specialized retailer that places emphasis on farm-to-table wholesale. This milestone demonstrates the Company's steady expansion across Sobeys 1500 store network, which first started with VERY's launch into Thrifty Foods. VERY is seeking new distribution opportunities across Canada and into the United States with the Rupert Facility coming online in the first quarter of 2021.
CEO Mitchell Scott commented: "We are pleased to see our relationship with Sobeys, one of North America's largest grocery store chains, deepen with our impending launch into Farm Boy's retail stores. As we start to commission the Rupert facility with the goal of significantly increasing production capacity, this is a vote of confidence from one of VERY's key retail partners."
Rupert Facility Update
Production at VERY's Rupert facility is expected to commence as scheduled in the first quarter of 2021. Several key roles have been filled and the team is prioritizing projects as we start to support the commissioning of the facility.
About The Very Good Food Company
The Very Good Food Company Inc. is an emerging plant-based food technology company. Our mission is to use progressive food technology to create plant-based meat and other food products that are delicious while maintaining a wholesome nutritional profile. To date we have developed a core product line under The VeryGood 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 limited to: the benefits expected to be derived from the new logistics partnership, the expected timing for commencement of production at the Rupert facility, the Company's ability to integrate the Rupert facility with current operations and standards, and the Company's efforts and ability to build its production and distribution capabilities.
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. Certain assumptions in respect of continued strong demand for our products; that added production capacity will enable us to increase our sales volume, that we do not experience material interruptions or supply chain failures as a result of COVID-19, our ability to retain key personnel, and changes and trends in our industry or the global economy are material assumptions made in preparing forward-looking statements or information and management's expectations. 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 including the risk of disruption at the Company's facilities or in its supply and distribution channels. 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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