Key Highlights:
- Signed LOI with leading ingredient distributor, establishing immediate sales volume in the ingredient channel.
- Received an initial $250,000 purchase order alongside the LOI.
- Anticipating completing a Definitive Agreement in January with a minimum commitment of $5M in sales for 2025.
- New Peru factory's three production lines are now fully operational, offering the world's largest GentleDry capacity and positioned to disrupt the $36 billion freeze-dry market1.
BEND, Ore., Dec. 05, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a pioneer in GentleDry dehydration technology, has signed a Letter of Intent (LOI) with a leading distributor in the dried food ingredient sector. This partnership marks a significant step in BranchOut's strategy to capture substantial growth in the ingredient channel, with anticipated sales of $5-6 million in 2025 and expected growth in the years ahead.
Along with the LOI, the ingredient distributor has issued an initial purchase order (PO) valued at approximately $250,000. This order is expected to set the stage for a definitive agreement in January 2025, following a planned visit to BranchOut's state-of-the-art production facility in Peru. This agreement will establish BranchOut as the exclusive supplier for multiple products, capitalizing on its GentleDry technology and the cost and quality advantages of its Peru facility.
Anticipating a Transformative Year Ahead
BranchOut Food's partnership with this seasoned leader in the dried food ingredient market marks a pivotal step in completing its three-channel sales strategy. Building on the rapid growth in branded and private label retail-already expanding into the nation's largest retailer and the nation's largest warehouse club-this agreement establishes a third sales channel in the ingredient market without requiring additional sales and marketing investment.
"This partnership accelerates our ability to capture growth in the ingredient channel while allowing us to focus resources on scaling our branded and private label retail channels," said Eric Healy, CEO of BranchOut Food. "It reinforces our strong revenue trajectory heading into 2025."
With its Peru facility now fully operational, boasting the world's largest GentleDry capacity and supporting $40 million in annual production, BranchOut is positioned to scale efficiently and drive profitability. This collaboration showcases the disruptive power of GentleDry technology, which delivers superior quality, flavor, and nutrition, paving the way for sustained growth in the ingredient market and beyond.
Disrupting The Freeze-Dried Market
The freeze-dried market, valued at $36 billion and growing 7.6%1 annually (CAGR), potentially faces rising prices from additional tariffs on Chinese imports into the US. BranchOut Food is set to disrupt the market with its GentleDry technology and Peru-based production, delivering superior-quality and lower costs.
"We believe our GentleDry technology is more efficient, cost-effective, and positioned to replace traditional freeze-drying," said Eric Healy, CEO of BranchOut Food. "This deal will help launch our products into the ingredient channel, kicking off our disruption of the freeze-dried market with innovative and superior quality."
About BranchOut Food Inc.
BranchOut Food is a leading international food technology company, specializing in the production of high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry Technology. This next-generation dehydration method preserves up to 95% of the original nutrition of fresh produce, offering superior quality and taste. Protected by over 17 patents, BranchOut's technology enables it to stand out as a trusted brand, ingredient and a private-label supplier. For more information, visit www.branchoutfood.com or follow us on social media here.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "position", "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
For more information:
info@branchoutfood.com
https://www.grandviewresearch.com/industry-analysis/freeze-dried-food-market-report1
Investor Contact
PCG Advisory
Jeff Ramson
jramson@pcgadvisory.com
