BranchOut Secures $2.8M in New Warehouse Club Orders as Pineapple, Banana, and Bell Pepper Surge; Strawberry Launches as Fourth Item and 2026 Expansion Plans Advance

Rhea-AI Summary

BranchOut Food (NASDAQ: BOF) has secured $2.8 million in new orders from a major warehouse club retailer, driven by strong performance of multiple products across regions. The company's Pineapple Chips and Chewy Banana Bites have exceeded sales velocity thresholds, with Southeast region placing a $714,000 reorder for Pineapple Chips and Midwest securing an $860,000 order for Chewy Banana Bites.

The company is launching Crunchy Strawberry Halves in Los Angeles, replacing a Chinese import, and has prepared new products including Apple, Mango, and Dragon Fruit for future expansion. BranchOut plans to launch a new branded line of snack packs for kids in 2026, targeting a $20-30 million opportunity in the grocery channel. To support growth initiatives, the company is raising $3 million through an ATM program.

Positive

• Secured $2.8 million in new warehouse club orders across multiple regions
• Multiple products exceeding retailer sales velocity thresholds
• Midwest region alone generated $1.8 million in orders across three SKUs
• Strong innovation pipeline with new products ready for retail presentation
• Peru facility operating below capacity with room for growth

Negative

• Raising $3 million through ATM program, potentially diluting shareholders
• Operational bottlenecks in front-end preprocessing requiring additional CAPEX
• Currently operating at only a fraction of theoretical capacity

Insights

Consumer Packaged Goods Analyst

BranchOut shows strong commercial traction with $2.8M in new orders, regional expansion, and promising innovation pipeline for sustained growth.

BranchOut Food's announcement represents significant commercial validation of their GentleDry™ technology platform. The $2.8 million in new orders from the nation's largest warehouse club (likely Costco) demonstrates the company is successfully converting initial placements into sustainable shelf presence - the most critical hurdle for emerging CPG brands.

The reorder pattern is particularly telling. After initial testing, the Southeast region placed its third major reorder of Pineapple Chips ($714,000), while Chewy Banana Bites secured $860,000 in Midwest orders plus $215,000 from the Bay Area. These aren't token orders - they represent meaningful volume that typically only occurs when products exceed the retailer's velocity thresholds.

The company's multi-SKU, multi-region strategy is textbook club channel expansion. Starting with Pineapple Chips, they've now secured placement for Banana Bites, Bell Pepper Crisps, and Strawberry Halves across multiple regions. The $1.8 million from the Midwest region alone across three SKUs indicates they're building a legitimate foothold rather than just securing temporary promotional placements.

Their Strawberry Halves launch is strategically significant as it directly replaces a Chinese import in the category's historically best-selling fruit variety. This represents domestic supply chain advantages and suggests BranchOut's technology delivers superior economics and quality compared to traditional freeze-drying.

The 2026 growth plan targeting mainstream grocery through produce department placement is a savvy channel strategy. By bypassing traditional grocery distributors and slotting fees, they're positioning for higher margins while benefiting from the premium perception and higher traffic of perimeter store placement. The $20-30 million opportunity cited for this channel expansion appears reasonable given their demonstrated club success.

Their capacity situation bears watching - while they have GentleDry™ infrastructure in place, they've identified preprocessing bottlenecks that require additional investment. The $3 million ATM program should address these constraints, though it will cause some dilution for current shareholders.

BranchOut’s Multi-Item Club Expansion Accelerates: Pineapple, Chewy Banana, and Bell Pepper Drive Multi-Region Growth as New Strawberry Crisp Launches in LA Region

Key Highlights:

• Southeast Pineapple Chips Surge: After strong in-store performance, the Southeast region placed its third major reorder with four truckloads totaling $714,000 delivered in June and July.
• Chewy Banana Expands Fast: Following a very successful LA region launch, Chewy Banana Bites secured an $860,000 Midwest order for Q3 along with a $215,000 order from the Bay Area. Additional regions are actively reviewing the sales data.
• Midwest Adds Pineapple and Reaches $1.8M for the Region: The Midwest placed a new $655,000 Pineapple Chips order, bringing its total to over $1.8 million across three SKUs including previously announced Bell Pepper Crisps launching in August.
• Strawberry Launch Replaces Imported Product: BranchOut’s new Crunchy Strawberry Halves launch in August in LA, replacing a top-selling Freeze-dried Chinese import with a higher-quality, better-value option.
• Two Items Breaking Out: Pineapple Chips and Chewy Banana Bites continue to exceed the retailer’s sales velocity thresholds and are showing strong momentum toward becoming long-term staples. BranchOut believes the new Strawberry item is on a similar path, with early performance indicating it could become the third top-selling fruit SKU, and reorders are anticipated.
• Innovation Pipeline Ready: New items—including Apple, Mango, Dragon Fruit, Snack Mixes, and Multi-packs—are ready for retailer presentations, showcasing BranchOut’s ability to expand with fresh, differentiated offerings.

BEND, Ore., July 30, 2025 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a pioneer in advanced dehydration technology and clean-label snacks, announced that it has received more than $2.8 million in new orders from the nation’s largest warehouse club, as multiple products gain traction across several regions. Building on strong in-store velocity and consumer response, the Company continues to secure large-scale follow-on orders that further validate its brand and technology in the high-growth better-for-you snack category in addition to the launch of new innovation.

The latest wave of purchase orders includes reorders for Pineapple Chips in the Southeast and Midwest, along with expanded distribution of Organic Chewy Banana Bites following a successful launch in Los Angeles. Both items continue to outperform retailer sales benchmarks, showing strong signs of repeatability and regional scalability—positioning them as potential long-term anchors in the portfolio.

In total, the Company has now received more than $1.8 million in orders from the Midwest region alone, spanning three different SKUs, and continues to see active expansion discussions underway in other major markets.

BranchOut’s new Crunchy Strawberry Halves will launch in the Los Angeles region this August, replacing a previously imported freeze-dried item from China. This represents a significant milestone, as strawberry is traditionally the top-selling item in the freeze-dried fruit category. The Company’s version delivers superior quality and value, and—based on the strong performance of Pineapple Chips and Organic Chewy Banana Bites—is expected to become a third staple item in the warehouse club. The Company anticipates strong initial sales, followed by regional expansion and consistent reorders.

To build on this momentum, BranchOut has a strong pipeline of innovative products prepared for presentation to key retail partners. Upcoming offerings include Mango Slices, Dragon Fruit, Apple Chips, Chickpeas and a range of Fruit Snack Mixes and Multi-packs—each designed to expand the Company’s footprint in the better-for-you category. These products reflect BranchOut’s ability to deliver high-quality, differentiated snacks that meet growing consumer demand for nutritious, on-the-go options.

“We’re seeing real momentum behind multiple items within the warehouse club channel, which is exactly what we aimed to achieve with our GentleDry™ technology and snack innovation strategy,” said Eric Healy, CEO of BranchOut Food. “Clubs are responding to strong velocity, and our ability to deliver consistent performance is establishing a foundation for long-term growth across multiple high-potential categories.”

BranchOut is positioned to fulfill growing demand while continuing to launch new products and expand into adjacent retail channels. The Company expects to leverage this recent success to deepen its partnership with key retailers and introduce a broader set of better-for-you snacks nationwide in 2026.

Looking Ahead, Growth Plan for 2026 and Beyond

Looking ahead to 2026, BranchOut expects to sustain its rapid YoY growth with the launch of a new branded line of snack packs designed for kids and school lunches. This line is targeted for placement in the produce departments of mainstream grocery retailers—strategically bypassing traditional national distributors and slotting fees to secure improved margins and stronger visibility on the store perimeter. The line will directly compete with incumbent China-sourced freeze-dried brands by delivering superior quality and value. BranchOut believes this as a $20–30 million opportunity within the grocery channel alone.

The multipack format also presents a significant opportunity with the nation’s largest warehouse club. These products would be merchandised in a second department, effectively doubling BranchOut’s addressable opportunity while leveraging the proven sales performance of its existing items in the original set. The retailer has already expressed interest in the multipack line, with meetings scheduled in the coming months.

In parallel, the Company is developing a breakthrough product line outside of the fruit and vegetable category that leverages its GentleDry™ technology to deliver unique consumer value—details to be announced soon.

While BranchOut’s Peru facility is currently operating at a fraction of its theoretical capacity, the high-capex GentleDry™ dehydration lines are fully installed and operational. The Company has identified bottlenecks in front-end preprocessing, and targeted investments in vertical integration and additional CAPEX will resolve these constraints—unlocking the full potential of the existing GentleDry™ infrastructure.

To support its broad-based growth initiatives, BranchOut is raising a limited amount of capital through a $3M ATM program. The proceeds will be directed toward key areas that drive scalability and long-term value creation, including strategic sales and marketing hires, expanded broker partnerships, new product development, and targeted operational enhancements. These investments are designed to accelerate execution across both retail and ingredient channels, strengthen customer relationships, and support the continued momentum of BranchOut’s rapid growth trajectory.

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:
ir@branchoutfood.com

Photos accompanying this announcement are available at:
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https://www.globenewswire.com/NewsRoom/AttachmentNg/cb2f2bf7-9dc1-4e76-89e4-2f089a127e0d

FAQ

What is the total value of new orders received by BranchOut Food (BOF) in July 2025?

BranchOut Food secured $2.8 million in new orders from the nation's largest warehouse club, including reorders for Pineapple Chips and expanded distribution of Organic Chewy Banana Bites.

How much revenue is BranchOut Food (BOF) generating from the Midwest region?

BranchOut has received over $1.8 million in orders from the Midwest region, spanning three different SKUs including Pineapple Chips, Chewy Banana Bites, and Bell Pepper Crisps.

What new products is BranchOut Food (BOF) launching in 2025-2026?

BranchOut is launching Crunchy Strawberry Halves in Los Angeles in August 2025, with plans to introduce Apple Chips, Mango Slices, Dragon Fruit, Chickpeas, Fruit Snack Mixes, and Multi-packs in the future.

How much capital is BranchOut Food (BOF) raising through the ATM program?

BranchOut Food is raising $3 million through an ATM program to fund sales and marketing hires, broker partnerships, new product development, and operational enhancements.

What is BranchOut Food's (BOF) market opportunity in the grocery channel for 2026?

BranchOut Food estimates a $20-30 million opportunity in the grocery channel alone for its new branded line of snack packs designed for kids and school lunches.