Strong 80% Organic Growth in 2019
Focused on Three-Prong Strategic Growth Plan for 2020
LOS ANGELES, CA – Accesswire – May 12, 2020 – Pacific Ventures Group, Inc. (OTC: PACV) (the “Company”), a food and beverage holding company specializing in the distribution of consumer food, beverage and alcohol-related products, is pleased to announce that it has filed its Annual Report 10-K for the year ended 2019, with the U.S. Securities and Exchange Commission.
To access the filing, please click here:
Revenue for the year ended December 31, 2019 was $5,918,337, an increase of $2,706,764, or 84%, as compared to $3,211,573 for the year ended December 31, 2018. The Company’s acquisition of Seaport Meat Company did not close until December 18, 2019, so included just 13 days of its operation to the 2019 annual results. For the entire 2019 year, Seaport Meat Company generated $28 million revenue.
Ms. Shannon Masjedi, Pacific Venture Group’s Chief Executive Officer, commented, “Our growth strategy for 2020 focuses on a three-prong approach that we believe will add value for our shareholders; (1) incrementally increase sales and profitability of San Diego Farmers Outlet and Seaport Meat Company, (2) expand Snöbar production and distribution and (3) acquire additional food production or distribution companies that are synergistic with San Diego Farmers Outlet and Seaport Meat Company. With almost 5 months under our belt as a newly combined company with Seaport Meat Company, we are well on our way. Our operating team has done a terrific job identifying and executing efficiencies and opportunities for growth. Our management team and Board have created a robust potential acquisition pipeline to complement our organic growth. We look forward to reporting our progress as it unfolds throughout 2020.”
Background Information and Highlights from the 2019 Annual Report 10-K
San Diego Farmers Outlet covers a large market area servicing Los Angeles, Orange County and San Diego, which we have estimated to be a $2.5 billion addressable market.
Unlike some larger distributors who make their customers receive products on a day and time convenient to the distributor, SDFO delivers daily and pays attention to what the customer wants. SDFO added products to meet the needs of restaurants, Hotels, Clubs and bars, Resorts, food trucks and caterers. Free delivery was added to demonstrate that Farmers Outlet had customers interest first in mind.
SDFO provides a wide array of products to serve customers of all types. However, they do have a niche in providing fresh produce and food products. Farmers Outlet provides specialty produce that the larger distributors do not carry on a daily basis.
SDFO covers a large market area servicing Los Angeles, Orange County and San Diego, which we have estimated to be a $2.5 billion addressable market. Farmers Outlet currently services the San Diego territory and has over 125 active customers, and no customer represents more than five percent of Farmers Outlet gross revenues.
The company services customers in high, middle and low-income communities with a specialty in providing food and fresh produce to customers serving small to medium size restaurants of all nationalities, including Chinese, Korean, Mexican, American, Japanese and Thai.
Pacific Ventures intends to expand its business through the acquisition of other food manufacturing and distribution companies that serve the Los Angeles, Orange County and San Diego area, thereby combining and expanding upon a combined customer base with an expanding range of products and services.
Seaport Meat Company, a California Corporation with over thirty (30) years in business servicing restaurant and retail, and institutional customers in Southern California and Arizona. Seaport Meat is a USDA meat processing plant that supplies quality meats, seafood, dry goods, dairy and produce. Seaport Meat Company built a state-of-the-art food distribution and manufacturing facility in Spring Valley, California and owns the land and the building. The 17,000 square foot facility is HACCP-compliant and is a USDA Licensed processing facility with on-site daily inspections. HACCP is a management system in which food safety is addressed through the analysis and control of biological, chemical, and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product. Having a USDA certified facility allows consumers to be confident that the Food Safety and Inspection Service (FSIS), the public health agency in the USDA, ensured that meat and poultry products are safe, wholesome, and correctly labeled and packaged
SMC customers range from a wide variety of restaurants, including many well known in Southern CA, to institutions, schools and re-distributors such as U.S. Foods and Sysco as well as to local distributors. They supply wholesale food and restaurant supplies to San Diego, Los Angeles, Orange and Riverside and offer same day service. In addition, they have clients in Arizona and Colorado that come to their facility to pick up their orders.
Because SMC can efficiently add new product lines, it is expected that this will expand the distribution of Pacific Ventures’ San Diego Farmers Outlet and SnoBar product line, thereby accelerating Pacific Ventures’ revenue growth. We believe the combination of a distribution and product company is unique in the San Diego area and will position the company for rapid growth.
SMC manufactures and wholesales custom processed beef, pork, chicken, lamb, veal and seafood. In addition, they are redistributors of a wide variety of dry goods, frozen foods, disposables and janitorial products. Their sales, distribution and finance processes are very efficient and can be expanded to add new product lines, including fresh produce and dairy.
About Pacific Ventures Group, Inc.
Pacific Ventures Group, Inc. (OTC: PACV) is focused on expansion within the consumer products, food, beverage and alcohol-related industries. For more information on PACV, please visit www.pacvgroup.com. (You need to be at least 21 years of age (legal age to consume alcohol) to visit the section of the web site dedicated to SnöBar.)
Safe Harbor Statement
Forward-Looking Statement: This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include but are not limited to, the inability of the company to obtain financing sufficient to maintain its operations and execute its acquisition strategy; the inherent uncertainties associated with smaller reporting companies; and other risks detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission.