- The Very Good Food Company (VERY) has signed a distribution agreement with UNFI Canada for its “The Very Good Butchers” product line
- Under the agreement, UNFI will distribute the products through its network of 40,000 retail partners, beginning in eastern Canada
- In addition to the agreement, the company has expanded its existing wholesale network with a further 275 partner stores
- The company will also settle roughly C$130,000 in debt through the issuance of shares, which was owed to Axe Communications and Market IQ Media Group
- The Very Good Food Company (VERY) is currently up 2 per cent to $2.55 per share at 12:55pm EDT
The Very Good Food Company (VERY) has signed a distribution agreement with UNFI Canada for its “The Very Good Butchers” product line.
UNFI is a subsidiary of United Natural Foods, which is the largest publicly-listed wholesale distributor in North America with 40,000 retail partners and 10,000 suppliers.
Under the terms of the agreement, UNFI will use its network to distribute The Very Good Butchers products across the country, with initial shipments to eastern Canada scheduled to begin in the next few weeks.
Mitchell Scott, CEO of The Very Good Food Company, said he is thrilled to have the support from UNFI as the company continues to scale-up its production.
“The distribution agreement with UNFI is a particularly exciting achievement for us, as it opens up the potential for significant expansion across North America utilising UNFI’s vast distribution network,” he added.
In addition to the deal with UNFI, the company has increased its existing network of distribution points with a further 275 partner stores, representing a 34 per cent increase to The Very Good Food Company’s previously reported figures in July.
The expanded network will be supported by the planned increase in production, with new facilities in Vancouver and California due to begin contributions next year, adding to the company’s current facility in Victoria.
“With two production facilities coming online in 2021, the recent partnership with a third party logistics partner and now our distribution agreement with UNFI, we continue to build the infrastructure necessary to scale our operations to the next level,” Mitchell continued.
Separately, the company will settle roughly C$130,000 in debt, which is owed to Axe Communications and Market IQ Media Group for previously provided services. The very Good Food Company will issue 47,866 common shares at a price of $2.13 each, which will be subject to a mandatory holding period of four months and one day.
The Very Good Food Company (VERY) is currently up 2 per cent to $2.55 per share at 12:55pm EDT.
