Monday, 25 February 2008

Planet Goes Big With New California Store

Planet Organic Health Corp. ( POH - TSX V)

On the heels of last week's announcement that POH has signed an agreement to buy New Leaf Community Markets of Santa Cruz, California for $9,750,000 (US), the company announced today that its well underway with construction of a new flag ship store.

The 22 thousand square foot store is more than twice the size of Planet's average Canadian location. This new store will be at Half Moon Bay, California on the San Mateo County coast. “This is going to be our flagship store,” reports Scott Roseman, President of New Leaf Community Markets. “We will be offering an expanded selection of prepared foods, gourmet cheeses, fine wines, and the best selection of organic fruits and vegetables.”

Planet's CFO, Darren Krissie noted that "New Leaf was an attractive partner for us. First they have an experienced management team and second they are keen on expanding throughout the west coast with a proven format."

The market should pay attention to Planet's expansion moves as the natural and organic food business is the fastest growing segment of the food retailing business. It is on track to do in excess of $100 million in sales in Fiscal 08 (June 30).