Innovative Food Holdings Optimizes Operations with Strategic Move
Innovative Food Holdings, Inc. (OTCQB: IVFH) has recently completed the relocation of LoCo Food Distribution LLC. This strategic decision facilitates the consolidation of operations with its subsidiary, Golden Organics. By moving from Fort Collins to Denver, the company aims to unlock significant operational efficiencies.
Understanding the Benefits of the Relocation
This relocation to Denver is a pivotal step for LoCo Foods as it navigates a new operational landscape. The decision is expected to lead to several tangible benefits:
Logistics Optimization
One of the key advantages is logistics optimization. With 80% of LoCo Foods' customers situated in Denver, the company anticipates a reduction in driving distance by around 60%. This change is expected to decrease driving labor by approximately 50%, which in turn will enhance efficiency while promoting sustainability.
Cost Reductions
The financial implications of this move are noteworthy. LoCo Foods will no longer bear the burden of a $159,000 annual warehouse lease and related property tax expenses. The relocation also aims to lower utility costs and truck maintenance fees, further solidifying the financial health of the company.
Future Synergies Through Integration
Looking ahead, Innovative Food Holdings highlights the potential for future synergies. As they integrate delivery routes and streamline inventory management, they will be able to capitalize on cross-selling opportunities within both Golden Organics and LoCo Foods' customer bases. This approach not only enhances service levels but also paves the way for more collective growth.
CEO Insights on the Move
Bill Bennett, CEO of Innovative Food Holdings, remarked on the significance of this move, stating, "This relocation is a significant step forward in realizing the value of our acquisition. By consolidating operations in Denver, we are not only cutting costs but also improving service levels for our customers." The efficiencies realized thus far bolster his confidence in the long-term growth potential of the company.
About Innovative Food Holdings
Innovative Food Holdings, Inc. is dedicated to enhancing the culinary experience. The company offers access to gourmet foods that may be challenging to procure, emphasizing unique products with engaging stories and contemporary trends. Their gourmet foods marketplace connects artisan food makers with professional chefs across the nation, equipping them with the resources to craft memorable dining experiences. For more information, visit www.ivfh.com.
Contact Information for Media and Investors
If you would like to reach out for more details or inquiries, please contact Gary Schubert, Chief Financial Officer at Innovative Food Holdings, Inc. His email is investorrelations@ivfh.com.
Frequently Asked Questions
What prompted the relocation of LoCo Foods?
The relocation was aimed at consolidating operations with Golden Organics, allowing for improved efficiency and cost savings.
How will the relocation affect costs?
The move is expected to eliminate significant expenses such as warehouse leases, and reduce utility and maintenance costs.
What operational efficiencies are anticipated?
A reduction in driving distance and labor, as well as optimized inventory management and delivery routes, are key expected efficiencies.
What are the future plans after the move?
Future plans include further integrating services and exploring cross-selling opportunities between the two companies.
How can investors contact the company for more information?
Investors can reach out to Gary Schubert, CFO, directly via email at investorrelations@ivfh.com for any inquiries.
