TSX:V - POH
EDMONTON , April 17 /CNW/ - Planet Organic Health Corp.'s latest proposed acquisition is more than tripling the footprint of one of its oldest stores as it also prepares to open the doors on a brand new store.
"The demand for organic and wholesome foods in this area is unparalleled," said Scott Roseman , President of New Leaf Community Markets, a four-store chain of organic food stores located in the ocean-side city of Santa Cruz .
Planet Organic Health (POH) is set to close its $9.75 million acquisition of New Leaf later this month.
Santa Cruz is located just south of San Francisco and its residents are keen organic food consumers, Mr. Roseman explained, because of the higher-than-average education and income levels and because the city is near two huge agricultural areas that produce massive amounts of strawberries and salad ingredients.
It's also a bedroom community for the wealthy executives in the nearby Silicone Valley and it boasts a University of California campus of 15,000 students.
For all those reasons, Mr. Roseman said it was an easy decision to expand its oldest store from the current 7 thousand sq. ft. footprint to just over 20 thousand square feet. The expansion should be completed by the beginning of next year.
Meanwhile, a new 22 thousand sq. ft. store currently under construction will open its doors in June. (See Planet's February 25th news release).
"We have the sea and the sun attracting a very health-conscious population and they are driving us on," Mr. Roseman added.
New Leaf generated U.S. revenues of $26.4 million and EBITDA of $1.5 million in fiscal 2007 (unaudited) and is tracking much higher for fiscal 08.
Darren Krissie , POH's Vice President of Corporate Development and CFO, said, "the demand for healthy foods has been growing by double digits every year for the past 20 years across North America and there is no let up in sight."
That's one of the reasons, Mr. Krissie added, why POH has grown sales over the last seven years from $1.6 million to projected revenues of more than $100 million this fiscal year, ending June 30th .
During the last seven years, the number of POH employees has also grown to 650.