VANCOUVER, BC, Feb. 7, 2023 /CNW/ - The Good Flour Corp. (CSE: GFCO) (OTCQB: GFCOF) (FSE: 3KZ) ("GFCO") today announced that GFCO has begun supplying a British Columbia-based meat processing plant (the "New Client") with its GF (Gluten-Free) Chicken Coating Mix/Blend. The New Client is using the GFCO chicken mix for foods such as GF chicken wings, GF chicken tenders, and GF popcorn chicken.
The New Client has a federally inspected Canadian facility, a key designation as it permits cross-border commerce to the U.S., in addition to sales throughout Canada. The new supply agreement exemplifies GFCO's sales channel diversity and further deepens GFCO's foothold in the robust gluten- and allergen-free food space and thriving chicken market.
According to Grandview Research, the global gluten-free products market size is expected to grow at a compound annual growth rate (CAGR) of 9.8% from 2022 to reach $13.7 billion by 2030. Despite chicken prices soaring in the first half of 2022, American's hunger for chicken remained strong, with $2.4 billion spent in the second quarter to buy 678 million breaded chicken sandwiches, up 3 percent from the first quarter of the year. In that industry segment, analysts at Technavio forecast the global take-out fried chicken market to experience a 5.32% CAGR to add $1.92 billion in market value from 2021 to 2026.
The New Client joins a growing portfolio of partners already purveying GFCO products, including distributors like Gordon Food Services and popular restaurants such as Earls Kitchen & Bar. GFCO chicken mix was recently featured in an article in Vancouver Magazine titled, "Best Thing I Ate All Week: (Gluten-Free!) Fried Chicken from Maxine's Cafe and Bar," during which the author raved about the gluten-free fried chicken served at Maxine's on Burrard Street in Vancouver made from the GFCO product.
"This is a fantastic growth opportunity for GFCO and further reinforces that our investment in a new, scalable production plant and automation equipment to efficiently formulate and manufacture certified GF and allergen-free mixes was a prescient business strategy last year," said Matthew Clayton, Chief Executive Officer of GFCO. "In collaboration with our consultants and advisors, we remain extremely active in pursuing similar coating opportunities across North America for not only chicken, but also other meats, fish, and plant-based products. While we are thrilled with the new supply agreement, we are confident that we are only scratching the surface of the potential market share we can capture in the food processing space."
GFCO's mission is to provide a gluten-free, allergen free, hassle-free all-purpose baking flour blend that allows individuals with gluten and other food allergies to enjoy life without giving up their favorite foods or settling for low-quality alternatives. GFCO also provides gluten and allergen free fried chicken batter, fish & chip batter, pizza & pasta mix, tempura batter, pancake and waffle blend, cake mix and pizza crusts.
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This news release contains "forward-looking information" concerning anticipated developments and events related to GFCO that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to demand for GFCO's products, benefits of the arrangement with the New Client, future coating opportunities and GFCO's future sales and business objectives.
In certain cases, forward-looking information can be identified by the use of words such as "expects", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "would", or "might" suggesting future outcomes, or other expectations, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the timely receipt of regulatory approvals; the ability to source ingredients; the ability to attract qualified management and staff; the ability to effectively expand manufacturing and production capacity; the success of market initiatives and the ability to grow brand awareness; the ability to distribute Company's products; the ability to attract, maintain and expand relationships with key strategic restaurant and food service partners and GFCO will continue to have access to financing until it achieves profitability. While GFCO considers these assumptions to be reasonable, they may be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed by the forward-looking information. Such factors include risks related to general business, economic and social uncertainties; local and global market and economic uncertainties arising in respect of the COVID-19 pandemic; risks associated with supply chain for machinery and equipment; litigation, availability of key product ingredients; legislative, environmental and other judicial, regulatory, political and competitive developments; failure to effectively expand production capacity; the ability to obtain retail partners to distribute Company's products; failure to attract, maintain and expand relationships with key restaurant and food service partners; changing consumer taste preferences; delay or failure to receive regulatory approvals; the sufficiency of our cash to meet liquidity needs; failure to attract qualified management and staff, labour disputes; and the additional risks identified in the "Risk Factors" section of GFCO's filings with applicable Canadian securities regulators.
Although GFCO has attempted to identify factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated. Readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, GFCO does not undertake any obligation to publicly update forward-looking information.
SOURCE The Good Flour Corp.
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