Healthy Oils Drive Spectrum Organics Record 1Q Sales

Healthy Oils Drive Spectrum Organics Record 1Q Sales

PETALUMA, Calif.-- Spectrum Organic Products Inc. (SPOP) reported a recordincrease of 24 percent in net sales to $12.7 million for the three months endedMarch 31, compared to net sales of $10.3 million for the same period of theprior year. The growth was primarily attributable to increased consumerawareness of the importance of healthy oils to overall health and nutrition.Additionally, the widespread elimination of partially hydrogenated oils (transfats) from products drove the company's industrial sales to record levels.

The company reported a net loss of $109,000 for the quarter, versus a netincome of $635,600 for the same quarter in 2003. This was largely attributableto increased raw material costs for certain key organic raw materials such asolive oil, canola oil and flaxseed, which put margin pressure on the company'sconsumer branded product lines, and to increased spending behind several newsales and marketing initiatives, including a new advertising campaign, a newcompany identity and packaging revisions, a completely redesigned Web site andan increased presence at industry trade shows.