BranchOut Food Signs Definitive Agreement with MicroDried to Revolutionize the $36 Billion Dried Ingredient Market, Projecting $5-6 Million Annual Revenue Surge
Rhea-AI Summary
BranchOut Food (NASDAQ: BOF) has signed a definitive agreement with MicroDried to integrate its GentleDry technology into MicroDried's premium dried ingredient portfolio. The collaboration aims to leverage MicroDried's market leadership and BranchOut's 50,000 square foot Peru facility for large-scale production.
The partnership is projected to generate $5-6 million in annual ingredient sales within the $36 billion global freeze-dried ingredient market, which is growing at a 7.6% CAGR. The agreement focuses on providing food manufacturers with high-quality, clean label dried ingredient solutions.
This strategic partnership represents one of BranchOut's three key sales channels, alongside its branded retail and private label divisions. Initial ingredient orders are already in production at BranchOut's facility, with both companies positioned to expand their presence in the global ingredient market.
Positive
- Projected $5-6M annual revenue increase from ingredient sales
- Access to $36B global market growing at 7.6% annually
- Strategic partnership with established industry leader MicroDried
- Initial orders already in production at Peru facility
- Diversified revenue streams across three sales channels
Negative
- None.
Insights
BranchOut Food's definitive agreement with MicroDried marks a significant revenue catalyst that could substantially impact the company's financial trajectory. The projected
The partnership strategically positions BOF to capture market share in the
What's particularly compelling is that production is already underway, indicating immediate revenue contribution rather than speculative future benefits. This partnership strengthens BOF's multi-channel strategy by complementing its retail and private label divisions with a potentially lucrative B2B ingredient business.
For a small-cap company like BOF, securing a partnership that provides direct access to large food manufacturers significantly derisks their market expansion strategy. The collaboration demonstrates management's ability to execute on commercialization opportunities while validating their technology's appeal to established industry players - critical factors for creating sustainable shareholder value in the specialty food technology space.
This partnership represents a strategic breakthrough for BranchOut Food in the competitive dried ingredients sector. By combining MicroDried's decade-plus market presence with BOF's GentleDry technology, the company gains immediate credibility with food manufacturers seeking alternatives to conventional freeze-dried ingredients.
The timing is particularly opportune as food manufacturers face mounting pressure to source clean-label, minimally processed ingredients while managing supply chain volatility and rising input costs. GentleDry technology addresses these pain points by preserving nutritional integrity and sensory qualities that resonate with consumer preferences for less processed foods.
The
What makes this arrangement particularly valuable is MicroDried's existing distribution infrastructure and technical sales capabilities, which would typically require years and significant capital for BOF to develop independently. This enables rapid market penetration while allowing BOF to focus capital investments on production capacity rather than sales infrastructure.
With initial orders already in production at BOF's Peru facility, the partnership demonstrates commercial validation beyond conceptual interest - a important distinction in the ingredients sector where adoption cycles can be lengthy. This positions BOF to capture value in the ingredients market while continuing to develop its consumer-facing business.
Collaboration Leverages MicroDried’s Market Leadership and BranchOut’s GentleDry Technology To Meet Growing Industry Demand
BEND, Ore., March 19, 2025 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a pioneer in next-generation dehydration technology, has signed a Definitive Agreement with MicroDried, a leading provider of premium dried fruit and vegetable ingredients to the food and beverage industry. This partnership expands MicroDried’s portfolio by integrating BranchOut’s GentleDry technology, enhancing the range of high-quality ingredient solutions available to food manufacturers worldwide.
Under the agreement, BranchOut and MicroDried will collaborate to drive large-scale production through BranchOut’s new 50,000 square foot high-efficiency Peru facility, complementing MicroDried’s established portfolio of premium dried ingredients. The collaboration is expected to generate
Revolutionizing the Market for Premium Dried Ingredients
The global freeze-dried ingredient market is evolving to meet increasing consumer demand for high-quality, clean label, and cost-effective solutions. MicroDried has long been at the forefront of this movement, providing innovative dried ingredients that maintain superior flavor, color, and nutrition. By adding GentleDry technology to its offerings, MicroDried provides food manufacturers with even more options to optimize ingredient performance across various applications.
“This partnership is a natural fit,” said Eric Healy, CEO of BranchOut Food. “MicroDried has built an exceptional reputation as a trusted supplier of dried ingredients to some of the world’s leading food brands. By integrating our GentleDry technology with their proven market expertise, we can provide top food manufacturers with additional innovative solutions to meet shifting industry demand.”
Why BranchOut + MicroDried is a Strategic Fit
- Total Addressable Market (TAM): With freeze-dried ingredients representing a
$36 billion global market and growing7.6% 1 annually (CAGR), the demand for high-quality, minimally processed ingredients continues to rise. This agreement positions BranchOut to compete in this expanding market with its proprietary GentleDry™ technology. - Leveraging Industry Expertise: With over a decade of experience and strong relationships with top food manufacturers, MicroDried enhances BranchOut’s reach by introducing GentleDry to a broad customer base.
- Expanding a Robust Ingredient Portfolio: MicroDried’s extensive portfolio of fruit and vegetable ingredients, including its proprietary drying technology, now includes GentleDry™ processed options, offering food manufacturers greater formulation flexibility and access to superior-quality dried ingredients.
- Meeting Industry Trends: Rising raw material costs, supply chain shifts, and consumer demand for clean-label, minimally processed foods require versatile drying technologies that maintain nutritional integrity and quality.
Expanding a Multi-Channel Sales Strategy
The ingredient business is one of three key sales channels for BranchOut, complementing its branded retail and private label divisions, both of which are already well-established and experiencing strong growth. Additionally, the company is preparing to launch its branded direct-to-consumer e-commerce platform, further expanding its market reach and strengthening its position as a leader in next-generation dried foods.
A Commitment to Innovation and Quality
MicroDried has long been recognized for its dedication to high quality, ready-to-eat dried ingredients with no added sugars or processing aids. By adding BranchOut’s GentleDry technology to its portfolio, MicroDried continues its commitment to providing customers with the best possible ingredient solutions to meet their needs.
“As the food industry evolves, we recognize the importance of offering a wide range of high-performance solutions,” said Steve Nugent, Director of Sales, MicroDried. “This collaboration allows us to provide our customers with additional offerings while maintaining the same high standards of quality, safety, and innovation that define the MicroDried brand.”
Future Outlook
With initial ingredient orders already in production at BranchOut’s facility, MicroDried and BranchOut Food are well-positioned to expand their impact in the global ingredient market. The partnership reflects both companies’ shared vision of delivering high-quality, innovative, and sustainable dried ingredient solutions that meet the needs of today’s food manufacturers.
About MicroDried
MicroDried is a leading provider of premium dried fruit and vegetable ingredients, serving the food and beverage industry with a commitment to quality, innovation, and clean-label solutions. With a diverse portfolio of minimally processed, nutrient-rich ingredients, MicroDried delivers innovative ingredient solutions to global food brands.
For more information on MicroDried’s ingredient solutions, visit www.microdried.com.
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
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
FAQ
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