Veg of Lund signs agreement for production of DUG in Germany
Veg of Lund AB has signed an agreement with an established European processing and packaging company for the production of the company’s potato beverage, sold under the DUG brand. Commercial production is expected to start in February 2023.
Veg of Lund has signed an agreement with a European player for the production of its plant-based drink DUG for Sweden and neighbouring markets. The production will take place in northern Germany and will complement existing production in England, which will mainly supply the UK and Irish markets.
“We have signed an agreement with an established manufacturer with long experience in plant-based food production in modern facilities in several locations in Europe. Veg of Lund’s strategy is to outsource production of our products to certified and competent partners in close geographical proximity to the markets where DUG is sold. Primarily we this as it is the most efficient from a cost and competence perspective, but also because locally produced food is demanded by the market and can result in a smaller carbon footprint,” says Fredrik Carling, CEO of Veg of Lund.
Sweden and the UK are priority markets for Veg of Lund, and with a plant in Germany, production will be closer to the Swedish market while the company can process other markets in Northern Europe. The UK plant will focus on customers in the UK and Ireland.
Until mid-January 2023, tests of the manufacturing process and packaging lines will be carried out. DUG Original, Barista and Unsweetened with updated recipes and in one-litre packaging will then start to be delivered to consumers in Sweden.
For more information, please contact:
Veg of Lund AB
Fredrik Carling, CEO
Telephone: +46 703 121 942
E-mail: fredrik.carling@vegoflund.se
About Veg of Lund AB (publ)
Veg of Lund AB (publ) develops, markets and sells plant-based foods that meet consumer demands for taste and sustainability. Veg of Lund has its roots in research at Lund University and the company’s business concept is to use its knowledge, patented methods and innovative solutions to develop and sell tasty, climate-smart and locally produced products based on potatoes. Veg of Lund offers alternatives to dairy products (milk drinks) and snacks (smoothies) and also develops meat alternatives. The company’s products are sold under the DUG brand to consumers, restaurants and food companies in Sweden, England and Ireland. The company has the ambition to expand mainly in Europe and Asia. The share is listed on Nasdaq First North and trades under the name VOLAB. Read more at ir.vegoflund.se. Mangold Fondkommission AB is the company’s Certified Adviser and can be contacted by phone: +46 8 5030 15 50 or e-mail: ca@mangold.se.
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