AUGA group

Regulatory Filings • Aug 13, 2018

Disclosure 363695

AUGA group - Notification on material event

AUGA group opens doors to North America

Products from organic producer, AUGA group, will be marketed at Costco, one of the world's largest retailers.

The company’s subsidiary company has signed agreement with „Costco Wholesale Canada Ltd“. Buyers in Canada will be able to purchase AUGA organic soup. First order is the biggest order in ready-to-eat products category received by AUGA group for export markets to date.

"We met Costco representatives at an exhibition in Chicago last year. Negotiations lasted less than a year. This is a very short time, as for many manufacturers, it usually takes 2-3 years to reach Costco warehouses. Having international quality and production control certificates and audits, helped speed up the process. However, formal documentation was not enough to enter Costco stores. During the final stage of negotiations, Costco representatives tasted the soups for themselves and chose their favorites. We have signed a regular supply agreement and are executing the first order. We will see the real annual sales volume after receiving further orders", - says Laurynas Miskinis, Head of Organic Products R&D and Commerce of AUGA group.

Costco has more than 700 stores worldwide, of which nearly 100 are located in Canada. Most of the stores are located in the United States - over 500. Although the number of Costco stores is not very big, it is one of the largest retailers in the world in terms of turnover, which in the past fiscal year, amounted to 129 billion USD. One Costco store on average generates more than 160 million USD sales per year.

After entering the Canadian market, it will be much easier to access other major markets, such as the United States, in the future. Partnering with Costco proves that the company meets the highest quality standards and can provide a regular supply of sufficient production volume.

General manager

Linas Bulzgys

+370 5 233 5340