OPTA FOOD INGREDIENTS REPORTS FIRE DAMAGED CONTRACT MANUFACTURER'S FACILITY, REDUCING SOME INVENTORY LEVELS
Minimal Effect on Financial Results Foreseen BEDFORD, Mass., May 28 /PRNewswire/ -- Opta Food Ingredients, Inc.
(NASDAQ-NMS: OPTS) announced today that a fire at one of its contract manufacturer's facilities, located in Minnesota, which produces one of Opta's products, a fat replacer trademarked OptaGrade(TM), has destroyed existing OptaGrade inventory and will briefly interrupt production.
Lewis C. Paine, president and chief executive officer, said, "We are fully covered by both fire and business-interruption insurance which should enable us to cover our financial losses. The cause of the fire was unrelated to the production of OptaGrade." "While Opta does not expect this disruption to adversely affect its operating results for the year, the company does anticipate that 1993 revenues will be below existing expectations," the chief executive said. "Opta has made other arrangements to continue production of OptaGrade," Paine said. Opta develops and markets proprietary new food ingredients which enable consumer products companies to improve the nutritional content, healthfulness and/or taste of foods. The company applies advanced enzymology and protein and carbohydrate chemistry to develop ingredients that can replace nutritionally undesirable food elements, such as fats and oils, while preserving important characteristics, such as flavor, texture, mouthfeel and shelf life. Opta's product-development strategy is to modify inexpensive raw materials to produce natural food ingredients which can be considered Generally Recognized As Safe under current Food and Drug Administration regulations. -0- 5/28/93 /CONTACT: Lewis C. Paine, president and CEO of Opta Food Ingredients, Inc., 617-276-5104; or Bill Pfund of P.L. Thomas Group, 312-906-8060, for Opta Food Ingredients, Inc./ (OPTS)
CO: Opta Food Ingredients, Inc. ST: Massachusetts IN: FOD SU:
DH -- DE009 -- 3333 05/28/93 10:32 EDT
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|Date:||May 28, 1993|
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