Naturally Splendid's Food Processing Facility Certified SQF Level 2 Manufacturing Capacity Increased

7/29/2019, 2:00 PM (Source: Newsfile Corp)

Vancouver, British Columbia--(Newsfile Corp. - July 29, 2019) - NATURALLY SPLENDID ENTERPRISES LTD. (TSXV: NSP) (OTCQB: NSPDF) (FSE: 50N) ("Naturally Splendid" or "NSE" or "Company) is pleased to announce the most recent upgrades to the Company's manufacturing and distribution facility are now complete and the designation of Safe Quality Food (SQF) Level 2 Certification has been successfully attained. This certification is a precursor to secure larger clients with the highest level of food quality standards.

Safe Quality Food (SQF) Level 2 Certified Food Manufacturing Facility

Earlier the Company announced being 'SQF Level 2 Compliant' while awaiting on-site, independent, third-party evaluation ( See news release dated, Feb.22nd, 2019 ). Naturally Splendid is pleased to now report, the Company has attained the designation of Safe Quality Food Level 2 Certification having passed their independent, on site third-party audit.

With SQF Level 2 Certification, Naturally Splendid continues the growth from a hemp consumer packaged company to a nutritional health food manufacturer. Our experience and expertise in hemp gained over the past decade, in combination with our food manufacturing expertise, has positioned the Company well to expand its existing product line into the evolving CBD edibles and topicals market coming soon.

Importantly, a key differentiator between Naturally Splendid and most others considering entry into the CBD edibles and topicals space, is our continued ability to build revenue in a more traditional multi-billion dollar nutritional bar market, while Health Canada rolls out the edible markets and regulations.

Canadian cannabis companies remain at the forefront of the cannabis industry. Naturally Splendid is well positioned to play a pivotal role as the market grows given our roots in hemp and our focus on food manufacturing. Certification as an SQF Level 2 facility brings our facilities in line to meet the high standards expected by Health Canada for this new and evolving edibles market. This certification will also continue to attract new and existing clients to us who are interested in both infused and non-infused products. Naturally Splendid will have the unique capacity to offer both traditional nutritional health products and infused edibles products, through the combination of facilities and licenses once fully completed.

Naturally Splendid Executive VP of Operations Mr. Bryan Carson reports, "Attaining SQF Level 2 Certification announces to the food industry that Naturally Splendid has invested in the necessary infrastructure to ensure our clients are receiving the best and safest products possible. We are already achieving the benefits of attaining this certification by attracting additional Contract Manufacturing Clients demonstrated by the fact that we are now manufacturing seven days a week at our facility with plans to add a second shift to fulfill expanding Purchase Orders".

Manufacturing Capacity Increases

With increased gross sales for both the Company Branded Product lines, as well as increased Purchase Orders from Contract Manufacturing Clients, additional manufacturing equipment has been purchased, doubling production in certain key areas. The Company currently has the capacity to manufacture a combination of 3,000,000 bars and bites per month. With the additional equipment and adding a second shift, the Company will have the capacity to produce over 10,000,000 bars and bites per month representing over 300% increase in production capacity.

Recently, the Company announced Q2 2019 unaudited financials significantly surpassing 2018 gross sales. This has been achieved in spite of concurrent facility alterations, expansion and equipment installations required for SQF Level 2 certification. Achieving 100% capacity during these upgrades was extremely challenging It is estimated the Company was able to run at approximately 70% of capacity or less during this facility upgrade phase over the first two quarters of 2019. However, the Company still achieved significantly higher gross sales than the same period in 2018 and, in fact, almost equaling all of 2018 gross sales. (As recently reported in a news release dated June 24th, 2019).

Company President Mr. Craig Goodwin states, "While Naturally Splendid awaits the upcoming cannabis edible regulations, coming into effect in Canada later this year, we have been diligent in building a thriving nutritional health products operation. Health Canada has announced all cannabis edible products will require a review by their agency before they can be manufactured and distributed. We anticipate, as part of a Health Canada review, a thorough assessment of facilities will be required. NSE's SQF Level 2Cerification and our expertise in hemp are critical components in achieving favourable reviews by Health Canada We know the edibles market will need time to develop and for retail infused product sales to build. As the opportunity in edibles gains momentum, Naturally Splendid plans to take full advantage and pursue opportunities to expand into this market. In the meantime, we will continue to increase and expand our traditional nutritional health product manufacturing business."

Safe Quality Foods Level 2 Certified Facility

An SQF Level 2 Program is a comprehensive HACCP-based food safety and quality management certification system for all sectors of the food industry, from primary production to transport and distribution.

SQF is a Global Food Safety Initiative (GFSI) benchmarked food safety standard that supports industry or company-branded products and offers benefits to suppliers and their customers. Products produced and manufactured under the SQF Code Certification retain a high degree of acceptance in global markets.

About Naturally Splendid Enterprises Ltd.

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For more information e-mail or call Investor Relations at 604-673-9573

On Behalf of the Board of Directors
Mr. J. Craig Goodwin 
President, Director

Contact Information

Naturally Splendid Enterprises Ltd.
(NSP - TSX Venture; NSPDF - OTCQB; 50N Frankfurt)
#108-19100 Airport Way 
Pitt Meadows, BC, V3Y 0E2 
Office: (604) 465-0548 
Fax: (604) 465-1128 

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Naturally Splendid cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Naturally Splendid's control including, Naturally Splendid's ability to compete with large food and beverage companies; sales of any potential products developed will be profitable; sales of shelled hemp seed will continue at existing rates or increase; the ability to complete the sales of all bulk hemp seed purchase orders; and the risk that any of the potential applications, including its application to obtain a Standard Processing License, may not receive all required regulatory or legal approval. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Naturally Splendid undertakes no obligation to publicly update or revise forward-looking information.


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