Barfresh Builds on Education Channel Momentum with Additional Major Customer Wins

Rhea-AI Summary

Barfresh, a provider of frozen, ready-to-blend, and ready-to-drink beverages, announced its latest expansion in the education sector. The company secured 542 new school locations across multiple states, catering to over 390,000 students for the 2024-2025 school term. This is part of a larger initiative, with over 3,100 new school locations acquired in the past month, representing over 2.2 million students. Barfresh attributes this growth to strategic national broker coverage, increased production capacity, and reintroduction of its 100% juice concentrate offering. CEO Riccardo Delle Coste highlighted the company's ongoing efforts to ensure product supply and exceptional service levels, projecting record fiscal year 2024 revenue and margin expansion.

Positive

• 542 new school locations secured across multiple states.
• Serving over 390,000 students for the 2024-2025 school term.
• Over 3,100 new customer school locations announced in the past month.
• Collective outreach to over 2.2 million students.
• Increased production capacity for the popular carton product.
• Reintroduction of the 100% juice concentrate offering.
• Addition of a Vice President of Supply Chain & Co-Manufacturing.
• Strategic national broker coverage expansion.
• Projected record fiscal year 2024 revenue.
• Projected year-over-year margin expansion.

Negative

• No specific financial figures provided for revenue or profit margins.
• Potential risk in onboarding new school locations affecting supply chain.
• Heavy reliance on successful bids in the education channel.

Insights

Financial Analyst

Barfresh's announcement of securing 542 new school locations is noteworthy for its potential impact on future revenue and profit margins. With these new customers, they are expecting to serve over 390,000 students, indicating a significant expansion of their market reach. The interest in their products across different states suggests strong demand for their offerings in the education sector.

From a financial perspective, this growth is promising. It positions the company well for a record fiscal year 2024 both in terms of revenue and profitability. However, it's important to consider the execution risk. The company must efficiently manage production and distribution to meet this increased demand. Additionally, the reintroduction of their 100% juice concentrate and the expansion of their carton product capacity will play a important role in sustaining this growth trajectory.

Investors should keep an eye on the company's ability to maintain its supply chain and manage costs effectively as they scale.

Market Research Analyst

The expansion into 542 new school locations is a strategic move by Barfresh and displays their aggressive push into the education channel. This market is particularly lucrative due to the recurring nature of the business and the strong emphasis on providing healthier beverage choices in schools. The fact that Barfresh's products are both ready-to-blend and ready-to-drink positions them favorably in a market that values convenience and nutrition.

Given the existing trends towards healthier eating habits and the increasing scrutiny on food and beverage options available to students, Barfresh's product portfolio is well-aligned with current market demands. This alignment not only aids in capturing new customers but also in retaining them over the long term. Furthermore, the company's plan to further expand their customer base before the 2024-2025 school year commences indicates a robust pipeline and a proactive sales strategy.

However, the company's growth will need to be supported by robust market research and demand forecasting to avoid overproduction and under-utilization of resources.

Supply Chain Expert

Barfresh's significant acquisition of new school customers underscores the importance of a well-oiled supply chain to support this growth. The addition of a Vice President of Supply Chain & Co-Manufacturing is a strategic move to ensure that production and distribution processes are scalable and efficient. Expanding production capacity for their popular products and reintroducing key offerings like the 100% juice concentrate requires meticulous planning and coordination.

From a supply chain perspective, the company must ensure that they have sufficient manufacturing partners and that their logistics systems can handle the increased volume. Any disruptions in this area could impact their ability to meet customer expectations and sustain growth momentum. Ensuring seamless onboarding of new customers and maintaining high service levels will be crucial.

For investors, the company's proactive steps in strengthening their supply chain should be seen as a positive indicator of their readiness to manage expanded operations.

Company Expands to Additional 542 New School Customer Locations Across Multiple States, Serving Barfresh Products to Over 390,000 Students for Fall

Accelerating Customer Wins to Drive Barfresh’s Projected Record Fiscal Year 2024 Revenue and Year Over Year Margin Expansion

LOS ANGELES, June 04, 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, continued accelerating its education channel growth trajectory, announcing today it has won several new customers in this key sales channel. The Company recently secured 542 new school locations across multiple states, representing a collective population of over 390,000 students. These new school locations will serve a variety of the Company’s products, including its Twist & Go carton and bottled smoothie products, 5:1 100% juice concentrates, and 1:1 bulk easy pour concentrates to their students beginning with the 2024-2025 school term. Over the past month, Barfresh has announced over 3,100 new customer school locations, representing over 2.2 million students, that will be served a range of the Company’s products either on their breakfast menus or a la carte menus. With numerous bids in the education channel currently underway, the Company anticipates announcing a significant number of new customer wins before the 2024-2025 school year commences.

Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, “We’re thrilled to announce another wave of significant new customer acquisitions within the education channel. This continued success stems from our strategic efforts to expand national broker coverage, increase production capacity for our popular carton product, and reintroduce our 100% juice concentrate offering. The recent addition of a Vice President of Supply Chain & Co-Manufacturing will be instrumental in onboarding these latest school wins while ensuring sufficient product supply and exceptional service levels as we seek to add a new bottle co-manufacturing partner. These newly secured 542 school locations will offer students a diverse portfolio of healthy beverages thoughtfully crafted to meet the unique needs of the education channel. Securing these accounts showcases the strength of our sales capabilities, the tremendous appeal of our better-for-you product portfolio, and reinforces our runway for continued expansion. Our powerful acquisition pipeline has numerous bids underway to onboard additional schools as Barfresh customers ahead of the 2024-2025 school year. This accelerated pace of new customer acquisitions strategically positions us for record revenue performance and expanded profit margins in fiscal year 2024.”

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 latest customer acquisition in the education channel?

Barfresh has secured 542 new school locations, serving over 390,000 students for the 2024-2025 school term.

How many new school locations did Barfresh acquire in the past month?

Barfresh acquired over 3,100 new school locations in the past month, representing over 2.2 million students.

What products will Barfresh be serving to the new school locations?

Barfresh will serve its Twist & Go carton and bottled smoothie products, 5:1 100% juice concentrates, and 1:1 bulk easy pour concentrates.

What are Barfresh's projections for fiscal year 2024?

Barfresh projects record revenue and year-over-year margin expansion for fiscal year 2024.

Who is leading Barfresh's supply chain and co-manufacturing efforts?

Barfresh recently added a Vice President of Supply Chain & Co-Manufacturing to lead these efforts.