BranchOut Food inks deal with MicroDried for drying tech

BEND, Ore. - BranchOut Food Inc. (NASDAQ: BOF), a small-cap food technology company with a market capitalization of $14.61 million, has entered into a Definitive Agreement with MicroDried, enhancing MicroDried’s portfolio with BranchOut’s GentleDry technology. The collaboration aims to bolster large-scale production at BranchOut’s new facility in Peru and is expected to generate $5-6 million in annual ingredient sales, which could significantly impact the company’s current revenue base of $6.49 million. According to InvestingPro data, BranchOut has demonstrated remarkable revenue growth of 372% in the last twelve months.

The partnership combines BranchOut’s innovative GentleDry technology with MicroDried’s established market presence. GentleDry is designed to offer superior flavor, color, and nutrition in dried ingredients, and this integration aims to provide food manufacturers with a broader range of high-quality options. While InvestingPro analysis indicates the company faces challenges with its current gross profit margin of 11.53% and overall weak financial health score, Eric Healy, CEO of BranchOut Food, stated that the collaboration with MicroDried will offer top food manufacturers innovative solutions to meet changing industry demands.

The freeze-dried ingredient market, valued at $36 billion globally and growing at a 7.6% annual rate, represents a significant opportunity for BranchOut’s GentleDry technology. The partnership leverages MicroDried’s decade-long expertise and customer relationships, expanding the reach of GentleDry technology to a wider customer base.

This agreement is part of BranchOut’s multi-channel sales strategy, which includes branded retail and private label divisions, as well as an upcoming direct-to-consumer e-commerce platform. MicroDried’s commitment to high-quality, clean-label ingredients aligns with BranchOut’s innovation-driven approach.

Steve Nugent, Director of Sales at MicroDried, emphasized the collaboration’s ability to offer customers more options while maintaining high standards of quality and innovation. With initial orders already in production, the partnership is set to make a substantial impact in the global ingredient market.

BranchOut Food Inc. specializes in dehydrated fruit and vegetable-based products using its proprietary GentleDry Technology, which preserves up to 95% of the original nutrition of fresh produce. The company maintains a healthy current ratio of 1.27, indicating sufficient liquidity to meet short-term obligations. MicroDried is known for its premium dried fruit and vegetable ingredients for the food and beverage industry. Investors seeking deeper insights into BranchOut’s financial metrics and growth potential can access additional analysis and 7 key investment tips through InvestingPro.

This partnership is based on a press release statement and reflects the companies’ shared vision of delivering sustainable, high-quality dried ingredient solutions for today’s food manufacturers.

In other recent news, BranchOut Food Inc. has announced a series of significant developments. The company projected to reach $9 million in revenue in the first half of 2025, supported by commitments from retailers and partners. Additionally, BranchOut Food Inc. has expanded its At-The-Market (ATM) equity offering from $3 million to $5 million, providing more flexibility in managing its capital needs. This amendment was filed with the SEC and involves Alexander Capital, L.P. as the sales agent.

BranchOut has also made key leadership appointments, naming Jesse Thomas as Chief Brand Officer to enhance its direct-to-consumer business and Lindsey L. Schwartz as a new director, bringing valuable industry experience. These appointments aim to strengthen the company’s strategic direction and operational capabilities. The company remains focused on leveraging its GentleDry™ technology to expand its market presence. These developments reflect BranchOut Food Inc.’s continued efforts to drive growth and innovation in the competitive food industry.

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