Real Good Foods Announces Opening of New Manufacturing Facility in Bolingbrook, Illinois

Rhea-AI Summary

The Real Good Food Company (Nasdaq: RGF) has opened a new manufacturing facility in Bolingbrook, Illinois, aimed at more than doubling its production capacity. This USDA-certified plant is crucial to the Company's growth strategy, expected to add $200 million in capacity by year-end, supporting net sales of $250 to $300 million when fully operational. The facility will decrease costs, improve margins, and enhance profitability by utilizing high-throughput production lines for current and future product innovations.

Positive

• New facility expected to increase production capacity by over 100%.
• Projected additional capacity of $200 million by end of 2022.
• Estimated net sales of $250 to $300 million at full capacity.
• Facility designed to lower overall costs and enhance profit margins.

Negative

• None.

New Facility Expected to More Than Double Production Capacity and Accelerate Margin Improvement

CHERRY HILL, N.J., April 6, 2022 /PRNewswire/ -- The Real Good Food Company, Inc. (Nasdaq: RGF) ("Real Good Foods" or the "Company"), an innovative, high-growth, branded, health- and wellness-focused frozen food company, today announced the opening of its state-of-the-art manufacturing facility in Bolingbrook, Illinois. This USDA, gluten free certified plant is Real Good Foods' second production facility and is a critical part of the Company's growth plans. This facility is expected to more than double the Company's manufacturing capacity to keep up with the rapidly growing demand for its products, while also reducing the Company's cost structure to accelerate its margin improvement agenda.

The Bolingbrook facility has high-throughput, flexible production lines that will support the production of Real Good Foods' current products, as well as planned innovation platforms including grain-free breaded poultry and zero-sugar Asian entrees. Production capacity will be phased throughout 2022 and is expected to add an additional $200 million in capacity by the end of the year. At full capacity, Bolingbrook is expected to support approximately $250 to $300 million in net sales.   

Located only 30 miles outside of Chicago, Bolingbrook is an ideal location for the Company's second manufacturing facility because of the proximity to raw materials and distribution hubs. The highly automated facility is expected to reduce the Company's overall cost structure, increase margins, and accelerate profitability.

"As we continue to work to increase capacity to meet demand for our products, Bolingbrook represents the next step in our growth journey," said Gerard Law, Chief Executive Officer of Real Good Foods. "Opening the Bolingbrook facility within six months of signing the lease demonstrates the speed, agility, and experience of our organization. I am proud of our dedicated team and supplier partners that have worked long hours to open this plant on time and on budget."

Bryan Freeman, Executive Chairman of Real Good Foods, added, "Our mission is to make our craveable, nutritious comfort foods accessible to everyone across the United States and, eventually, throughout the world. Opening Bolingbrook is a significant milestone for the Company as we build capacity and expand our reach."

About The Real Good Food Company

Founded in 2016, Real Good Foods believes there is a better way to enjoy our favorite foods. Its brand commitment, "Real Food You Feel Good About Eating," represents the Company's strong belief that, by eating its food, consumers can enjoy more of their favorite foods and, by doing so, live better lives as part of a healthier lifestyle. Its mission is to make nutritious comfort foods that are low in carbohydrates, high in protein, and made from gluten and grain free real ingredients more accessible to everyone, improve human health, and, in turn, improve the lives of millions of people. Real Good Foods offers delicious options across breakfast, lunch, dinner, and snacking occasions available in over 16,000 stores nationwide, including Walmart, Costco, Kroger, and Target, and directly from its website at www.realgoodfoods.com. Learn more about Real Good Foods by visiting its website or on Instagram at @realgoodfoods, where it has one of the largest social media followings of any brand within the frozen food industry today with nearly 420,000 followers. 

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the demand for the Company's products and the impact of the new facility on its production capacity, cost structure, margins and profitability. The Company has attempted to identify forward-looking statements by using words such as "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," or "would," and similar expressions or the negative of these expressions. 

Forward-looking statements represent management's current expectations and predictions about trends affecting the Company's business and industry and are based on information available as of the time such statements are made. Although the Company does not make forward-looking statements unless it believes it has a reasonable basis for doing so, it cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause the Company's actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled "Risk Factors" in its Annual Report on Form 10-K for the period ended December 31, 2021, as well as the other reports it files with the Securities and Exchange Commission from time to time. 

In addition, readers are cautioned that the Company may make future changes to its business and operations in response to the challenges and impacts of the COVID-19 pandemic, or in response to other business developments, which changes may be inconsistent with the Company's prior forward-looking statements, and which may not be disclosed in future public announcements.

For interviews with Bryan Freeman, Executive Chairman, email realgoodfoods@powerdigital.com. 

Media Contact
Nikole Johnston
realgoodfoods@powerdigital.com

Investor Contact
Chris Bevenour
ir@realgoodfoods.com

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SOURCE Real Good Foods

FAQ

What does RGF's new facility in Bolingbrook, Illinois, aim to achieve?

The new facility aims to more than double production capacity and improve cost efficiency, supporting significant net sales growth.

When did Real Good Food Company open its new facility?

The facility was announced on April 6, 2022, and is part of the Company's growth plans.

How much additional production capacity is expected from the new plant?

The new plant is expected to add $200 million in production capacity by the end of 2022.

What are the expected net sales for the Bolingbrook facility at full capacity?

At full capacity, the facility is expected to support net sales of $250 to $300 million.

What type of products will be produced at the Bolingbrook facility?

The plant will support current products and new innovations like grain-free breaded poultry and zero-sugar Asian entrees.