Thursday, 17 April 2008

SUN AND SEA GROW ORGANIC FOOD SALES

Planet Organic Health Corp. (TSX:V - POH)
Basic Shares: 33.1 million
Fully Diluted: 38.2 million

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The organic California-based retail chain that Planet Organic is planning to buy is flexing its corporate muscle by tripling the size of its original store while preparing to open a brand new mega store.

All because sales for New Leaf Markets in the northern California seaside city of Santa Cruz are growing faster than mushrooms on a warm wet day.

New Leaf will have four stores in and around Santa Cruz – located south of San Francisco - when the brand new, 22 thousand sq. ft. store opens its doors in June.

And the recent decision to replace New Leaf’s first 7 thousand sq. ft. store with a brand new 20 thousand sq. ft. store built near the original outlet will capture even more of the market.

What is that market?

New Leaf generated U.S. revenues of $26.4 million and EBITDA of $1.5 million in fiscal 2007 (unaudited) and is tracking much higher for fiscal 08.

Planet Organic Health (POH) is set to close its $9.75 million acquisition of New Leaf later this month.

That will give Planet six divisions. Not counting revenues from New Leaf, Planet’s five divisions are set to collectively generate more than $100 million in projected sales this fiscal year, which ends June 30th.

That’s an impressive number considering Planet started out with just one store producing $1.6 million in annual sales seven years ago.

Employees have also grown from about 20 to 650 today. To view Planet’s latest news release on the California expansions, please click here.