$VRUS NEWS! VERUS INTERNATIONAL TO OPEN FIRST MAN
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Posted On: 12/06/2019 12:40:30 PM
$VRUS NEWS!
VERUS INTERNATIONAL TO OPEN FIRST MANUFACTURING FACILTIY
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December 06, 2019 12:38 ET | Source: Verus International, Inc.
Gaithersburg, MD, Dec. 06, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS) announced today that it is completing a 10,000 square foot manufacturing facility located in Houston, Texas. The facility will operate as a Verus subsidiary under the name “Success Labs,” and has been designed to provide flexibility to manufacture and package a variety of wet and dry consumer goods. The facility’s initial focus will be gummi and nutraceutical products, followed by other to-be-announced products.
“Success Labs represents a major milestone for our company and is part of our goal to become more vertically integrated when in-house processing makes sense,” explained Verus CEO Anshu Bhatnagar. “Surprisingly enough, world-wide gummi production capacity is currently strained, so this is partly a strategic move, given our expectations for a major expansion into more Major League Baseball (“MLB”) team markets during 2020.”
Equipment installation is already underway and the facility is expected to become operational during early calendar year 2020, just in time for the spring MLB selling season. This single Houston location will enable Verus to more easily service a nationwide footprint for a variety of branded packaged goods as well as export internationally given its proximity to Port of Houston. Additionally, Verus has an option to expand the facility’s footprint within the current building to almost twice its current size to support future growth. Furthermore, the impact on profitability will be significant, with the potential to achieve 40% or better gross margins in some categories. The facility is expected to eventually increase to between $2 million and $3 million per month in revenue, depending upon the mix of new products planned for 2020. Success Labs is part of a larger strategic plan to add regional and national manufacturing facilities when such facilities can lead to new business and improved profitability.
“The customers we are in current discussions with are much larger, so part of their decision process involves knowing that a vendor can fulfill orders across a large store base,” explained CEO Bhatnagar. “This facility will provide our customers added confidence in our fulfillment capabilities, while also improving our margins. A key feature of owning our own manufacturing facility is that we can now develop and launch high value lines where we need a higher degree of control, so this facility will accelerate our new product initiatives. Our goal has always been to have Verus brands on multiple retailer shelves. Success Labs is going to bring a number of products to market much earlier, so we are excited to make this long-awaited move into manufacturing a reality.”
VERUS INTERNATIONAL TO OPEN FIRST MANUFACTURING FACILTIY
Email Print Friendly Share
December 06, 2019 12:38 ET | Source: Verus International, Inc.
Gaithersburg, MD, Dec. 06, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS) announced today that it is completing a 10,000 square foot manufacturing facility located in Houston, Texas. The facility will operate as a Verus subsidiary under the name “Success Labs,” and has been designed to provide flexibility to manufacture and package a variety of wet and dry consumer goods. The facility’s initial focus will be gummi and nutraceutical products, followed by other to-be-announced products.
“Success Labs represents a major milestone for our company and is part of our goal to become more vertically integrated when in-house processing makes sense,” explained Verus CEO Anshu Bhatnagar. “Surprisingly enough, world-wide gummi production capacity is currently strained, so this is partly a strategic move, given our expectations for a major expansion into more Major League Baseball (“MLB”) team markets during 2020.”
Equipment installation is already underway and the facility is expected to become operational during early calendar year 2020, just in time for the spring MLB selling season. This single Houston location will enable Verus to more easily service a nationwide footprint for a variety of branded packaged goods as well as export internationally given its proximity to Port of Houston. Additionally, Verus has an option to expand the facility’s footprint within the current building to almost twice its current size to support future growth. Furthermore, the impact on profitability will be significant, with the potential to achieve 40% or better gross margins in some categories. The facility is expected to eventually increase to between $2 million and $3 million per month in revenue, depending upon the mix of new products planned for 2020. Success Labs is part of a larger strategic plan to add regional and national manufacturing facilities when such facilities can lead to new business and improved profitability.
“The customers we are in current discussions with are much larger, so part of their decision process involves knowing that a vendor can fulfill orders across a large store base,” explained CEO Bhatnagar. “This facility will provide our customers added confidence in our fulfillment capabilities, while also improving our margins. A key feature of owning our own manufacturing facility is that we can now develop and launch high value lines where we need a higher degree of control, so this facility will accelerate our new product initiatives. Our goal has always been to have Verus brands on multiple retailer shelves. Success Labs is going to bring a number of products to market much earlier, so we are excited to make this long-awaited move into manufacturing a reality.”
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