Unseasonably Warm Weather Leads to Unprecedented Produce Shortages During Most of October and November
MENLO PARK, Calif., Dec. 08, 2015 (GLOBE NEWSWIRE) — Landec Corporation (NASDAQ:LNDC), a leading developer and marketer of innovative and proprietary products for healthy living applications in the food and biomedical markets, has revised its revenue and net income guidance for the fiscal second quarter and fiscal year 2016 due to severe shortages of key produce items caused by unseasonably warm weather during the second quarter ended November 29, 2015.
“During the second quarter of Landec’s fiscal year 2016, Apio has been experiencing produce shortages and increased costs in many of our key vegetables due to very poor yields and quality to the extent never seen before in Apio’s 35-year history,” said Molly Hemmeter, Landec’s President and CEO. “Despite our efforts to meet the increasing demand for our products, there is simply not enough supply from our contracted growers, or for purchase on the open market, to meet demand. Shortages have been due to unseasonably warm weather. Our procurement team is working diligently to ensure that Apio continues to supply all demand for our Eat Smart salad kits and vegetable trays, thereby isolating shortages to our fresh-cut bagged vegetable products.