It is estimated that this business will generate incremental profitable revenues of approximately $5.0 million to $7.0 million in the first year and continue to grow in following years, as the products are further developed and incremental supply becomes available.
As per the terms of the agreements, SGOI has entered into arrangements with a number of strategic organic suppliers and processors, primarily in Central America, a relatively new but fast developing and growing area for the group, as well as relationships in other key growing regions, to develop supply sources for organic broccoli, green beans, edamame, asparagus and other vegetables and fruits. In addition, SGOI has assumed a number of existing customer contracts and relationships in North America for supply of organic private label and branded frozen vegetable products and expects to grow these relationships as supply and processing sources are expanded.