Organic Garage Provides Corporate Update

Implementation of COVID-19 safety protocols, significant increase in sales and volumes, ample inventory to meet demand

TORONTO--()--Organic Garage Ltd. (“Organic Garage” or the “Company”) (TSX-V: OG), one of Canada’s leading independent organic grocers committed to offering its customers a wide selection of healthy and natural products at everyday affordable prices, would like to provide the following corporate update pertaining to its business and operational activities.

Operational Update

Essential Service to Community

Organic Garage has been designated an “essential service” by the Ontario government and continues to focus on its responsibility to its community to ensure that its stores remain operational while providing a safe environment for its customers and staff.

Retail Store Sales Volumes

Organic Garage is experiencing extremely high demand volumes, and is pleased to announce that it is working with its distribution partners in managing and filling the supply chain to keep up with demand.

Increased On-line Demand Volumes

As a result of stay-at-home and quarantining advisories implemented by the provincial and municipal governments, the Company’s online sales have significantly increased. The average on-line basket size has doubled, and Organic Garage is one of the top performing grocery chains on the Cornershop platform, with whom the Company announced a partnership on January 29th, 2020. Its daily order count has experienced a 400% increase since the beginning of March.

Vendor Inventory Replenishment

Although high volumes have impacted the ability of some Organic Garage vendors to meet the overwhelming demand seen since early-March, the Company’s supply chain remains strong. The Company has advised that while stock of some fresh items such as meat, milk and eggs and some dry categories such as paper products, household cleaning products and certain canned goods have experienced supplier replenishment delays, supply of these items continues to improve.

Staff Recognition

The Company would like to thank the staff in its stores, warehouse and head office for their contributions to ensuring the Company operates as safely and as effectively as possible during an exceedingly difficult situation. In consideration of all the hard work and dedication demonstrated by its employees, the Company has increased the hourly pay for all store and warehouse staff.

COVID-19 Response

The Company’s priority has always been and will continue to be the well-being of its staff and customers. The Company is being vigilant in staying informed on, and strictly adhering to, recommendations provided by Ontario’s Chief Medical Officer of Health and Toronto Public Health in order to keep its community healthy. The Company has been proactive and responsive in implementing health and safety measures including:

  • Enhanced cleaning protocols and implementation of a sanitization protocol across the store, including grocery carts, baskets and other high touch surfaces.
  • Installation of plexiglass dividers for checkout counters to create a barrier between customers and staff
  • Implementing early shopping hours for senior citizens over the age of 65
  • Practicing social distancing through the installation of floor markings at checkout and other locations in every store
  • Waiving the plastic bag fee to temporarily discourage the use of reusable bags and asking customers who do bring their own to bag their own items
  • Encouraging cashless payment where possible
  • Suspending in-store features such as self-serve bulk offerings, Reverse Osmosis water dispenser, salad bar, draft stations and in-store sampling activity
  • Pausing Bring Your Own container program
  • Suspending the accepting of product returns and glass bottle returns
  • Select Head Office staff working remotely
  • Testing curbside pickup at all locations starting the middle of April

The Company will continue to keep customers updated on social media, through its flyer email database and on its website using the following link:

https://www.organicgarage.com/covid-19-updates

The Company has been careful to consider the impact to both its staff and customers in adopting the recommendations set forth by the health authorities and balancing the needs of both groups will be crucial to the effective operation of the business going forward throughout this uncertain period. A recent blogTO article by Misha Gajewski outlined some of the Company’s decision-making processes and detailed some of the measures implemented by Organic Garage. The article can be read here:

https://www.blogto.com/eat_drink/2020/04/toronto-grocery-store-chain-navigating-pandemic/

Generating long-term relationships with its customers and community through transparency and trust has been a core tenet of Organic Garage’s since the Company’s inception. While providing affordable everyday pricing on high-quality products has always been the Company’s focus, it now becomes Organic Garage’s responsibility.

About Organic Garage Ltd.

Organic Garage (TSX-V: OG) is one of Canada’s leading independent organic grocers committed to offering its customers a wide selection of healthy and natural products at everyday affordable prices. The company’s stores are in prime retail locations designed to give customers an inclusive, unique and value-focused grocery shopping experience. Founded in 2005 by a fourth-generation grocer, Organic Garage is headquartered in Toronto and operates a highly efficient supply chain through its centralized distribution centre. The company is focused on continuing to expand its retail footprint within the Greater Toronto Area. For more information please visit the Organic Garage website at www.organicgarage.com.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Cautionary Note Regarding Forward-looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.

Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of Organic Garage, that may cause the actual results, level of activity, performance or achievements of Organic Garage to be materially different from those expressed or implied by such forward looking statements. Although Organic Garage has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Organic Garage's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither Organic Garage assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

Contacts

Bill Mitoulas
T: (416) 479-9547
E: investor_relations@organicgarage.com
W: www.organicgarage.com

Release Summary

Organic Garage provides COVID-19 impact update; safety measures implemented, increase in sales and volumes, ample inventory to meet demand.

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Contacts

Bill Mitoulas
T: (416) 479-9547
E: investor_relations@organicgarage.com
W: www.organicgarage.com