General Assembly Pizza Secures Master Production Facility to Meet Growing Consumer Demand

Daily Production to Increase by up to 2,400% as Revenues and Demand Ramp

General Assembly Holdings Limited (TSXV: GA) announced that to meet growing consumer demand and scale production of its naturally leavened frozen pizzas, it has signed a lease and taken possession of a 42,060 square foot master production facility in Vaughan, Ontario. GA Pizza’s first dedicated production facility will undergo a full renovation and phased build-out of a production line, including an initial line that is expected to increase daily production capacity by 150% to 5,000 units per day by the end of Q3 2021 and ramping to 10,000 units a day by year end. When fully operational in 2022, the facility will have an expected production capacity of 50,000 units per day—a 2,400% increase over current capacity levels. This new capacity should produce monthly output of approximately 1 million units of GA Pizza’s par-baked, naturally leavened freezer-to-table pizzas and will meet the rapid uptake in consumer demand.

Securing the master production facility was a key strategic priority for the Company in Q3. In addition to production, refrigerated storage, retail warehousing and wholesale distribution, the facility will also house office space and GA Pizza’s R&D hub, The Dough Lab. Shifting consumer packaged goods (“CPG”) production to the master production facility enables GA Pizza to ramp up restaurant operations—which have been dormant throughout Q2 to allow for increased CPG production capacity—and reopen its flagship location for dine-in and off-premise in Q3.

“In our current model—producing our frozen pizzas from our flagship restaurant—capacity has been constrained with demand greatly outpacing supply, so the timing couldn’t be better. The master production facility will allow GA Pizza to scale production significantly and meet our growing wholesale and consumer demand—not to mention the benefits of operating at scale and re-activating our restaurant and off-premise channels. Coming off a record-setting Q2 with frozen pizza sales up 70% over Q1, our production facility will expand our wholesale partnerships across the country, as we continue to meet our pizza lovers wherever they are,” said Ali Khan Lalani, Chief Executive Officer and Founder. The company anticipates that more than 50% of GA Pizza’s future production will be allocated to retail and wholesale sales, compared to 20% year-to-date.

The Company has signed a seven-year lease with partner Pure Industrial, which owns and manages over 22 million square feet of industrial real estate across Canada. As one of Canada’s leading providers of real estate, Pure Industrial actively partners with promising Canadian businesses to support their growth.