Organic Garage (TSX-V:OG) Ltd CEO Matt Lurie has shared a year-end letter with shareholders, saying that the year 2021 was “an exciting year of accomplishment” for the company and its plant-based foods subsidiary, the Future of Cheese.
“The company’s accomplishments in 2021 were truly transformational and have positioned Organic Garage (TSX-V:OG) for success in 2022,” said Lurie in a statement. “Our team at Organic Garage and the Future of Cheese are committed to the task at hand; delivering growth and value for all shareholders.”
READ: Organic Garage sees gross profit margins, cash balance increase in 3Q as online orders heat up
Lurie noted that in 2022, the Future of Cheese is expected to launch an additional four to six stock-keeping units (SKUs) to provide a “compelling offer to retailers” as the company works towards national and international distribution.
The Toronto-based company’s subsidiary is also looking to collaborate with a co-packer in 2022, allowing the Future of Cheese to focus on R&D, marketing, and promotion of the brand while leveraging the co-packer to rapidly scale the business, the CEO wrote.
In 2022, the subsidiary brand will also sign up with a few large distributors. Lurie added that having good partner distributors will facilitate access to more and more retailers “that would be more difficult for us to access on our own.”
The 2021 highlights for Organic Garage include:
- Acquired the Future of Cheese: The successful acquisition and integration of the Future of Cheese were transformational for both companies
- Commenced trading on the OTCQX was important for increasing US market awareness and accessing new shareholders who want to participate in the growth opportunity
- Transitioned to a decentralized distribution model: this change was crucial in opening up the company’s store expansion possibilities as it is no longer restricted by distribution ranges tied to the former warehouse. Transitioning away from a self-distributed warehouse model will save the company in excess of $1 million per year.
- Furthered the growth of the Organic Garage hand-picked partner program: The program was created to augment the store’s core offer with select specialty businesses that could add a product category to its already comprehensive offering
- Established an online partnership with Instacart, providing an online delivery service for customers that were either unable to shop in person or did not have an Organic Garage close to where they lived
- Launched the Future of Cheese product lines during the latter part of 2021, having the three SKUs of plant-based butter and the plant-based brie all launch within six to eight weeks of one another
- Grew the company’s leadership team
- Implemented new Organic Garage store expansion initiatives by engaging with a world-class real estate team in Savills (LSE:SVS) Real Estate Company and launching a new Organic Garage logo that helps to emphasize its value proposition in the market
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