GreenSpace Brands Inc.(TSXV: JTR), a leader within the organic and plant-based food industry, announces its CENTRAL ROAST brand has successfully transitioned its business model from in-house production to contract manufacturing, which should enable ongoing cost savings.
As announced in the Company’s May 12, 2021 press release, the Company plans to reduce ongoing operating costs through a restructuring program called Project FIT. This initiative is expected to deliver annualized cost savings in excess of $2.0 million, starting in the second half of the fiscal year ending March 31, 2022. Project FIT is expected to create a leaner, simplified and more focused business, significantly reducing fixed and variable costs with the goal of enhancing shareholder value.
The Company is pleased to confirm that it has successfully discharged its remaining facilities obligations and sold its production equipment as of June 30, 2021.
Beginning July 2021, the range of CENTRAL ROAST nuts, seeds and other healthy snack products will be manufactured by third-party providers with scale advantages and existing relationships with many of CENTRAL ROAST’s existing suppliers. This is expected to drive enhanced synergy savings for the business while maintaining the highest commitment to product quality.
“The changes in our CENTRAL ROAST manufacturing model underscores our strong determination to become a more focused and efficient organic and plant-based food company,” says Shawn Warren, President & CEO of GreenSpace Brands. “This transition will free up cash for the business and allow us to fuel our profitable growth agenda across the enterprise.”
