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Menlo Park, California
January 25, 2001
Landec Corporation (Nasdaq: LNDC) said today that its Eat Smart
line of value added vegetables marketed by its wholly owned subsidiary Apio, Inc. has experienced significant expansion during the
past year with distribution nearly doubling to approximately 7,500 retail supermarkets and club stores versus 4,000 a year ago.
Apio said its value added produce business has experienced four-year annual compounded revenue growth of 90%. In the past three
months alone, the company has added 2,500 new retail and club stores as customers. The company experienced record sales for its
value added product line last month. During 2000, Apio introduced eight new products for the retail and foodservice markets and plans
to introduce ten or more new offerings in 2001.
The company attributes its increased market penetration to the successful market acceptance of its 12-ounce fresh-cut vegetable
products that utilize Intellipac(TM) specialty packaging. Sales of the 12-ounce products increased more than 45 percent in December
2000 compared to December of the prior year.
More recently, further increases in distribution were gained through the introduction of Eat Smart iceless broccoli crowns. Apio's
eighteen-pound iceless broccoli crowns are packed in case liners that use Intellipac breathable membrane technology. The iceless
broccoli crown introduction marked a milestone for the company as it was the first whole produce product sold under the Eat Smart
brand that utilizes this technology.
Intellipac specialty packaging extends shelf life, maintains crispness, and reduces discoloration and unpleasant odors and flavors
associated with fresh-cut produce by creating an ideal modified atmosphere inside the package, all without the use of ice. The
packaging technology has a high rate of gas exchange, which results in the appropriate atmosphere for the fresh-cut produce within the
bag, particularly high respiring vegetables such as broccoli.
The International Fresh-cut Produce Association estimates the U.S. fresh-cut produce market is as large as $10 billion annually and
expects the segment to more than double by 2005. A new study from the association found that 85 percent of consumers are buying
fresh-cut produce, with 76 percent purchasing it at least once a month.
"The excellent market acceptance of our Eat Smart product line demonstrates the significant opportunity for our value-added produce,"
noted Gary Steele, Landec's president and chief executive officer. "During 2000, Apio packed approximately 59 million pounds of
fresh-cut vegetables utilizing our Intellipac breathable packaging technology. We are optimistic that our current product line, along with
the development of other new products, will generate continued growth in the future," he added.
Apio markets a full line of whole vegetables, fresh-cut vegetables, bananas, grapes, pears and tree fruit under the Eat Smart brand.
Sales of the Eat Smart brand products are handled by its national sales network which includes operations in Guadalupe, California,
and six regional sales offices.
Landec Corporation designs, develops, manufactures and sells temperature- activated and other specialty polymer products for a variety
of food, agricultural and licensed partner applications. The company's temperature- activated polymer products are based on its
proprietary Intelimer(R) polymers which differ from other polymers in that they can be customized to abruptly change their physical
characteristics when heated or cooled through a pre-set temperature switch.
Company news release
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