SunOpta Inc's Fruit Group has expanded strategic relationships in Argentina and Chile and has entered into agreements to increase supply of fruit products from these regions.
The company entered into a five-year supply agreement with Baby's Best Infant Food Ingredients SA, a producer of organic and natural purees and concentrates in Mendoza, Argentina. Under terms of the agreement, SunOpta will provide a line of credit to enable Baby's Best to acquire a 45,000-square-foot production facility in Mendoza to ensure SunOpta's supply chain. SunOpta also received a first right of refusal and an option to acquire all the outstanding shares of Baby's Best and related companies based on a predetermined formula, exercisable in March 2009.
SunOpta has also entered into a three-year organic supply agreement with a processor of organic and natural frozen fruits in Chile. Under terms of the agreement, SunOpta will finance a capital expansion to further develop growth in organic supply over the next three years.
