Blue Star Foods Executes Transformational Master Service Agreement to Generate an Expected $20 Million Additional Revenue in 2024
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Insights
The strategic partnership formed between Blue Star Foods and a vertically integrated seafood provider marks a significant business move with potential to enhance Blue Star's market presence. The integration of sourcing, operations and distribution under the Master Service Agreement is indicative of Blue Star's commitment to expanding its supply chain capabilities. This is particularly relevant as the seafood market is increasingly demanding transparency and sustainability, areas where Blue Star's ESG focus can provide a competitive edge.
By tapping into the existing $20 million annual business of its new partner, Blue Star is poised for revenue growth. However, it is crucial to monitor the execution of the integration process. The synergy between Blue Star's aquaculture technology and the partner's value-added services could lead to increased efficiency and product innovation, but it also requires careful management to avoid potential operational bottlenecks and ensure quality control.
The announcement of Blue Star Foods' Master Service Agreement with a key player in the seafood industry is likely to be received positively by investors, given the potential for revenue growth and operational synergies. The access to 2,776 retail outlets through the partner could significantly increase Blue Star's distribution footprint, a critical factor in driving sales volume.
Financially, the integration with a $20 million annual business suggests an accretive transaction for Blue Star, potentially enhancing earnings per share and providing economies of scale. However, investors should be attentive to the short-term costs associated with the integration and whether Blue Star will need to raise additional capital to support the expansion, which could dilute current shareholder value.
Blue Star Foods' focus on Recirculatory Aquaculture Systems (RAS) within the ESG framework positions the company at the forefront of sustainable seafood production. The partnership with a vertically integrated provider could amplify Blue Star's influence on sustainable practices throughout the seafood industry's value chain. The ability to source and distribute products more efficiently not only supports business growth but also aligns with broader environmental objectives by potentially reducing the carbon footprint associated with seafood logistics.
The commitment to ESG principles is increasingly important to consumers and investors alike. As Blue Star Foods continues to serve its existing business while expanding, the company's adherence to these principles will be under scrutiny. Effective communication of their ESG achievements, as well as transparent reporting on sustainability metrics, will be key in maintaining stakeholder trust and capitalizing on the growing demand for responsible business practices.
Miami, FL, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Blue Star Foods Corp., (“Blue Star,” the “Company,” “we,” “our” or “us”) (NASDAQ: BSFC), an integrated Environmental, Social, and Governance (ESG) sustainable seafood company with a focus on Recirculatory Aquaculture Systems (RAS), is pleased to announce its signing of a Master Service Agreement with a vertically integrated seafood value added provider.
The fully integrated seafood provider adds value from, sourcing to preparing and distributing its gourmet meals through 2,776 retail outlets. It innovates and develops finished value-added meals under several brands, including retail partner private label brands. Its products range from raw retail and food service seafood steaks and portions to dishes, such as quiche, dips, salads, and gourmet seafood entrees.
The Master Service Agreement calls for Blue Star to assist with sourcing, operations, and distribution of its products and to continue to serve its existing business.
John Keeler, CEO of Blue Star Foods, commented, “We are thrilled to join forces with this team in what is truly a transformational event for Blue Star Foods. Under its current leadership in business development and sales and its chef’s wizardry in the creation of avant garde gourmet recipes, they have built a
About Blue Star Foods Corp. (NASDAQ: BSFC)
Blue Star Foods Corp. an integrated Environmental, Social, and Governance (ESG) sustainable seafood company with a focus on Recirculatory Aquaculture Systems (RAS) that processes, packages and sells high-value seafood products. The Company believes it utilizes best-in-class technology, in both resource sustainability management and traceability, and ecological packaging. The Company also owns and operates the oldest continuously operating Recirculating Aquaculture System (RAS) full grow-out salmon farm in North America. The company is based in Miami, Florida, and its corporate website is: https://bluestarfoods.com
Forward-Looking Statements:
The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s product development and business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Risks concerning the Company’s business are described in detail in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and other periodic and current reports filed with the Securities and Exchange Commission. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Contacts:
investors@bluestarfoods.com
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