Barfresh Expands Annual Production Capacity by Additional 50 million Units with New Third Party Location with Ability for Further Future Expansion

Rhea-AI Summary

Barfresh Food Group Inc. (Nasdaq: BRFH) has announced a significant expansion in its production capacity, adding a new co-manufacturing location primarily dedicated to producing their recently launched Pop & Go™ Freeze Pops. This new facility increases their annual production capacity by 50 million units, with potential for further expansion.

With the addition of three new third-party locations in the last month, Barfresh has boosted its total annual production capacity to over 120 million units. This strategic move aims to meet current demand, position the company for future growth, and diversify their manufacturing footprint to enhance operational resilience and scalability.

CEO Riccardo Delle Coste emphasized that these expansions, along with key hires and an extended product portfolio, have built a robust foundation for significant revenue expansion, particularly in the education sales channel and other foodservice and retail channels.

Positive

• Increased annual production capacity by 50 million units with new co-manufacturing location
• Total annual production capacity boosted to over 120 million units
• Diversified manufacturing footprint with three new third-party locations
• New facility dedicated to producing Pop & Go™ Freeze Pops, targeting the education channel
• Potential for further expansion at the new facility

Negative

• None.

Location Primarily Dedicated to Manufacturing Company’s New Pop & Go™ Freeze Pops

Company Has Recently Added Three New Third Party Locations Dramatically Boosting Annual Capacity to Over 120 million Units

LOS ANGELES, July 31, 2024 (GLOBE NEWSWIRE) -- Barfresh Food Group Inc. (the “Company” or “Barfresh”) (Nasdaq: BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, today announced a new co-manufacturing location. This new location will primarily be dedicated to manufacturing the Company’s recently launched Pop & Go™ Freeze Pops, as well as some of its other offerings. In addition, this new capacity adds 50 million units annually with the ability for further expansion at this facility in the future. Overall, the Company now has the ability to produce over 120 million units annually of its full range of offerings in all channels.

Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, “In the last month we have added three new third-party locations, thereby growing our manufacturing capacity to over 120 million units annually in order to meet current demand and position ourselves for future success. This latest location will be instrumental in producing our innovative new Pop & Go™ freeze pops, which we believe has tremendous potential in the education channel. The scalability of this new location aligns perfectly with our projected customer acquisition growth. These three key partners are part of our strategic initiative to strengthen and diversify our manufacturing footprint. This approach not only positions us for rapid expansion but also mitigates risks by reducing reliance on any single location, significantly enhancing our operational resilience and scalability.”

“From adding key hires to increasing customer acquisition and extending our product portfolio, we’ve methodically built a robust foundation for significant revenue expansion. These manufacturing partners complete our strategic preparations, enabling us to meet growing demand in our key education sales channel, while also expanding into other foodservice and retail channels, setting the stage for accelerated growth across multiple customer segments.”

About Barfresh Food Group

Barfresh Food Group Inc. (Nasdaq: BRFH) is a developer, manufacturer and distributor of ready-to-blend and ready-to-drink beverages, including smoothies, shakes and frappes, primarily for the education market, foodservice industry and restaurant chains, delivered as fully prepared individual portions or single serving and bulk formats for on-site preparation. The Company’s single serving, on-site prepared product utilizes a proprietary, patented system that uses portion-controlled pre-packaged beverage ingredients, delivering a freshly made frozen beverage that is quick, cost efficient, better for you and without waste. For more information, please visit www.barfresh.com.

Forward Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking, including statements about the Company’s commercial progress, success of its strategic relationship(s), and projections of future financial performance. These forward-looking statements are identified by the use of words such as “grow”, “expand”, “anticipate”, “intend”, “estimate”, “believe”, “expect”, “plan”, “should”, “hypothetical”, “potential”, “forecast” and “project”, “continue,” “could,” “may,” “predict,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The contents of this release should be considered in conjunction with the Company’s recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including any warnings, risk factors and cautionary statements contained therein. Furthermore, the Company expressly disclaims any current intention to update publicly any forward-looking statements after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

Investor Relations
John Mills
ICR
646-277-1254
John.Mills@icrinc.com

Deirdre Thomson
ICR
646-277-1283
Deirdre.Thomson@icrinc.com

FAQ

What is Barfresh's new annual production capacity after adding the new co-manufacturing location?

Barfresh's new annual production capacity has increased to over 120 million units after adding the new co-manufacturing location and two other third-party facilities in the last month.

What product will the new co-manufacturing location primarily produce for Barfresh (BRFH)?

The new co-manufacturing location will primarily produce Barfresh's recently launched Pop & Go™ Freeze Pops, as well as some of its other offerings.

How many additional units of annual production capacity does the new location add for Barfresh (BRFH)?

The new co-manufacturing location adds 50 million units of annual production capacity for Barfresh, with the potential for further expansion at this facility in the future.

What is Barfresh's (BRFH) strategy behind adding new manufacturing locations?

Barfresh's strategy is to strengthen and diversify its manufacturing footprint, positioning the company for rapid expansion while mitigating risks by reducing reliance on any single location, enhancing operational resilience and scalability.