Vancouver, British Columbia--(Newsfile Corp. - May 13, 2021) - Blue Heron Creamery, ("Blue Heron" or the "Company") a global leader in the next generation of plant-based dairy alternatives is pleased to provide an update on the commencement timeline for its new production facility, and it's latest personnel additions as the company embarks on its path to substantially expand the scope and scale of its operations.
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Production and Distribution Update
The Company is pleased to announce that production lines at its new South Surrey production plant are in the process of being finalized and are undergoing commissioning, with test runs being completed and full-scale production taking place shortly thereafter. The local health authority has provided health approval which is a first step to moving into the Company's HACCP certification which is anticipated to be received shortly. The facility is anticipated to provide Blue Heron the capacity to produce upwards of 1,600,000 lbs annually of its world renowned non-dairy cheese and non-dairy alternative products. With retail and eCommerce activities underway, Blue Heron will be updating its product packaging, with an anticipated roll out over the summer and fall of 2021.
Upon commissioning the new equipment and when production is underway, an initial 182 store launch with a well-known retailer will take place, initially with 4 SKU's. The retailer has ~260 outlets under its umbrella in Western Canada, providing an avenue for increased distribution. The Company anticipates expanding distribution to all locations by the end of 2021.
Ecommerce and Subscription Sales
In addition to expanded retail distribution, Blue Heron's products will be available through two leading online grocery channels in the summer of 2021, positioning the Company to grow its eCommerce sales in tandem with increased presence in brick and mortar retailers
To grow recurring revenue, a new company-operated eCommerce website has been created for subscription orders and direct-to-consumer (D2C) sales using Shopify. The Company is also in the process of creating a la carte ordering using the same platform to provide consumers convenience and flexibility in their order preferences. Blue Heron received over 500 requests to participate in a subscription cheese box trial to understand how best to accommodate forecasted growth in this new channel. This trial was marketed with initial capacity limited to approximately 100 boxes per month, however, after initial marketing efforts, the Company received 5x the anticipated number of requests.
CEO Karen McAthy stated: "We were so thrilled by the immediate support from our customer base as we launched our direct to consumer subscription offering. This not only underscores the support we have from consumers, but it really showcases their loyalty as they have showed the desire to have our products as a consistent item on their shopping list."
To build on its vision of creating a more sustainable future, the Company has submitted B Corporation certification, which certifies businesses that balance purpose with profit and consider their impacts on the external community and environment. The four-month-long process of putting together B Corporation Metrics and plans towards the certification has been done by working with Decade Impact Group and is expected to be completed in the fall of 2021, being Canada's first plant-based non-dairy cheese company certified and second globally only to Miyoko's.
As a means to further its product innovation and remain at the forefront of the plant-based dairy industry, management has also been working on an external non-dilutive funding opportunity aimed to seed various additional R&D projects. This funding opportunity, once finalized, will result in a potential $5-$8M in funding over the next 24 months, which will go towards the development of new innovative product lines and R&D equipment.
The Company has engaged KPMG to audit financials and provide tax advice, which will take place over the next five weeks with the audit report expected to be issued early June.
About Blue Heron Creamery
Blue Heron Creamery is an award-winning, next-generation plant-based innovator and producer of 100% Dairy-free, vegan artisan cheeses. Blue Heron uses true cheese-making methodologies by utilizing a proprietary science-first approach with active bacterial cultures and enzymes specific to plant-based protein reactions.
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Cautionary Note Regarding Forward-Looking Information
In the interests of providing Blue Heron Creamery Ltd. ("Blue Heron " or the "Corporation") potential investors with information regarding Blue Heron, including Management's assessment of future plans and operations relating to the Corporation following the transaction, this document contains certain statements and information that are forward-looking statements or information within the meaning of applicable securities legislation, and which are collectively referred to herein as "forward-looking statements". Forward-looking statements in this document include, but are not limited to statements and tables (collectively "statements") with respect to: proposed acquisitions and strategies for acquisitions, capital projects and expenditures; strategic initiatives; anticipated activity and industry trends; and anticipated performance. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, as well as known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and which may cause Blue Heron's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by the forward-looking statements. These assumptions, risks and uncertainties include, among other things: Blue Heron's ability to successfully implement strategic initiatives and whether such initiatives yield the expected benefits; future operating results, Blue Heron's ability to generate sufficient cash flow from operations to meet its current and future obligations; its ability to access external sources of debt and equity capital; economic conditions; and other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by Blue Heron. Readers are cautioned that the foregoing list of important factors is not exhaustive. The forward-looking statements contained in this document are made as of the date of this document or the dates specifically referenced herein. All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Any financial outlook or future-oriented financial information, as defined by applicable securities legislation, has been approved by management of Blue Heron. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and goals relating to the future of Blue Heron. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Corporation is not a "reporting issuer" in any province or territory in Canada or equivalent in the United States. There is no guarantee that a going public transaction will be completed or that the Corporation will become listed on any stock exchange. Accordingly, the Corporation may never complete a going public transaction and may never become a "reporting issuer" in any jurisdiction in Canada or the elsewhere.
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