BranchOut Food has secured an estimated $2 million order from the nation’s second-largest warehouse club for a new Tropical Mix multipack. The order follows the retailer’s recent award of an approximately $8 million annual program for BranchOut’s Crunchy Fruit Chips.
The Tropical Mix will feature individually packaged servings of BranchOut’s Crunchy Pineapple, Mango and Banana Chips. Shipments are scheduled to begin in December ahead of placement in warehouse clubs starting in January.
The product will initially be offered as a limited-time item. If it achieves the retailer’s required sales velocity, BranchOut believes the multipack could become an everyday product stocked year-round.
An everyday placement would create an additional recurring revenue stream alongside BranchOut’s recently secured $8 million annual program. The company said the second order demonstrates the retailer’s confidence in its products, manufacturing capabilities and innovation pipeline.
The multipack was designed for school lunches, family sharing, travel and other on-the-go occasions. It complements BranchOut’s existing family-size mixed fruit bag by targeting consumers who prefer individual portions and multiple flavors within a single package.
BranchOut develops fruit and vegetable snacks using its proprietary GentleDry technology. The dehydration process is designed to preserve up to 95% of the original nutrition of fresh produce while maintaining flavor and texture.
The company’s technology is protected by more than 18 patents. BranchOut uses the platform to produce products under its own brand and for private-label and ingredient customers.
The additional warehouse club order could also improve BranchOut’s factory utilization and manufacturing efficiency as production volumes increase. Greater production scale may allow the company to spread fixed operating costs across more units and strengthen operating leverage.
BranchOut said the success of its initial Crunchy Fruit Chips program demonstrates demand for premium fruit snacks produced through its dehydration process. The company plans to continue introducing new products to existing retail partners while seeking additional customers.
KEY QUOTES:
“This additional order is another tremendous vote of confidence from one of the country’s largest retailers. After seeing the exceptional performance of our Crunchy Fruit Chips product, the retailer quickly expanded our relationship with a new Tropical Mix multipack.”
“This demonstrates the strength of our innovation pipeline and the growing consumer demand for premium fruit snacks made with our proprietary GentleDry technology. If this item performs like our first program, we believe it also has the potential to earn everyday placement, creating another recurring annual revenue stream for BranchOut.”
Eric Healy, CEO of BranchOut Food
