Barfresh Announces Additional Major School Wins in Midwest as Educational Customer Growth Continues

Rhea-AI Summary

Barfresh Food Group (Nasdaq: BRFH) has announced significant expansion in the Midwest education market, adding approximately 1,300 new schools to its customer base. A major portion of this growth comes from the company's approval by AEA purchasing, a regional educational service provider overseeing about 1,200 schools.

The company's Twist & Go™ smoothies have been approved for breakfast and a la carte menus following successful testing. Implementation has already begun in several schools and will continue through the 2025-26 school year. Additionally, Barfresh is testing its new Pop & Go™ 100% Juice Freeze Pops product line, targeting the lunch menu segment which typically sees 3-5 times higher placement volume than breakfast menus.

Positive

• Secured approximately 1,300 new schools in the Midwest market
• Gained approval from AEA purchasing, accessing network of 1,200 schools
• New Pop & Go™ product targets lunch segment with 3-5x higher placement potential than breakfast
• Early implementation showing strong reception in member schools

Negative

• None.

Insights

Market Research Analyst

The addition of 1,300 schools serving approximately 500,000 students represents a substantial market expansion for Barfresh. This development is particularly significant for several reasons:

• The approval from AEA purchasing provides a scalable entry point into the Midwest market, with potential for rapid expansion across their network of 1,200 schools
• The education channel typically operates on long-term contracts, providing stable, recurring revenue streams
• The breakfast menu penetration serves as a proof-of-concept, while the upcoming Pop & Go™ product line targeting lunch menus could potentially generate 3-5x higher volumes
• The Midwest region's large student population and consolidated purchasing decisions through educational service providers offer an efficient scaling model

The strategic timing of this expansion, coinciding with the 2025-26 school year, allows for methodical implementation and potential revenue recognition starting in Q3 2025. The successful testing phase and early reception indicate strong product-market fit, while the innovative Pop & Go™ line demonstrates the company's ability to diversify its product portfolio to capture different dayparts and consumption occasions.

This expansion marks a pivotal moment for Barfresh, potentially establishing them as a significant player in the educational beverage sector. The combination of existing product success and new product innovation, particularly targeting the higher-volume lunch segment, positions the company for accelerated growth in the education channel.

Company Expands Presence in Education Channel with Addition of Approximately 1,300 Schools Serving Half a Million Students

LOS ANGELES, Jan. 30, 2025 (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 multiple new customer wins in the Midwest education market. These new school additions represent approximately 1,300 schools across the region. Several of these schools have already begun serving Barfresh's portfolio of better-for-you smoothie beverages on their breakfast menus, with additional implementations set to continue through the start of the 2025-26 school year.

A key highlight of this announced expansion is the Company’s recent approval from AEA purchasing, a regional educational service provider, responsible for the menu items representing approximately 1,200 schools in the Midwest. After a series of successful tests with the purchasing group and their representative members (the schools, including the students at the schools), Barfresh’s Twist & Go™ smoothies were approved for the breakfast and a la carte menus. Initial rollout of Barfresh smoothies has begun across several of their member schools. Following strong early reception, the Company anticipates expanding to additional schools within the AEA’s network during the 2025-26 school year.

Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, “The Midwest market represents a significant opportunity in our K-12 growth strategy. Our relationship with the school districts as well as AEA, which is the group responsible for approving menu items, demonstrates the effectiveness of working with regional educational service providers to expand our reach to schools of all sizes. The strong reception from schools currently rolling out our products validates the demand for convenient, better-for-you beverages in the education channel. Additionally, our new Pop & Go™ 100% Juice Freeze Pops product line, which is currently in regional testing, represents a significant growth opportunity as we prepare for national rollout. This innovative product targets the lunch menu segment, where placement volume is typically 3 to 5 times higher than breakfast menu placement. As we continue our national expansion, these new customer wins and product innovations further strengthen our position in the education channel."

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

How many new schools did Barfresh (BRFH) add in their Midwest expansion?

Barfresh added approximately 1,300 new schools across the Midwest region.

What is the potential impact of Barfresh's Pop & Go™ product for BRFH?

The Pop & Go™ product targets the lunch menu segment, which typically has 3-5 times higher placement volume than breakfast menu placement.

When will Barfresh (BRFH) complete the school implementation rollout?

The implementation will continue through the start of the 2025-26 school year.

How many schools are in the AEA purchasing network that approved Barfresh products?

AEA purchasing represents approximately 1,200 schools in the Midwest region.

Which Barfresh products were approved for school breakfast menus?

Barfresh's Twist & Go™ smoothies were approved for breakfast and a la carte menus.