Diamond Ranch Foods Ltd (OTC BB: DRFO), a meat, poultry, and seafood processing and foodservice distribution company, plans to begin exporting products into Mexico.
The firm has secured purchase orders that it projects will bring an additional $400,000 in monthly revenue, approximately $5 million annually. This will represent an increase in sales of nearly 40% and a gross profit margin gain of 20% annually.
“These initial secured purchase orders are only the first step in entering this lucrative and underserved marketplace,” said Victor Petrone, Diamond Ranch Foods chief financial officer/chief operating officer.
Mexico’s hotel and restaurant business, including Baja California, is heavily dependent on tourism. Almost 90% of the foreign tourists in Mexico are from the United States, and many show a preference to purchase US food products.
According to a recent US Department of Agriculture report, Mexico’s hotel, restaurant, and institutional foodservice sectors have sales of $55 billion. The foodservice distribution industry in Mexico is highly fragmented and underdeveloped, while posing logistical challenges, thus creating a barrier to US foodservice distributors to enter the Mexican market. Diamond Ranch Foods has developed an import portal, as well as a customer base to begin penetrating the Mexican marketplace.
Diamond Ranch Foods operates a fleet of refrigerated trucks for delivery throughout the New York metropolitan area and ships coast to coast via common carrier.
The company‘s USDA-inspected facility is in the Hunts Point Cooperative Market (Bronx NY) and has a diversified customer base throughout the tri-state region, including supermarket chains, restaurants, hotels, deli/catering operators, institutions, and industry suppliers.
Visit www.diamondranchfoods.com/ for more details.
