The company stated that it has entered into strategic exclusive agreements with reputable local fruit industry leaders to develop supply opportunities in the organic and natural frozen fruit industry. The agreements increase SunOpta's supply of natural and organic strawberries, raspberries and blueberries, apple and pear purees and fruit and vegetable concentrates from an important supply region.
The company entered into a five year exclusive supply agreement with Baby's Best Infant Food Ingredients S.A., a producer of organic and natural purees and concentrates in Mendoza, Argentina. The agreement ensures SunOpta of a constant and growing source of critical commodities. Under the terms of the agreement, SunOpta will provide a line of credit to enable Baby's Best to acquire a 45,000 square foot production facility in Mendoza to ensure SunOpta's supply chain. In addition, SunOpta received a first right of refusal and an option to acquire all of the outstanding shares of Baby's Best and related companies based on a predetermined formula, exercisable in March 2009.