Key Highlights:
- Estimated $8 Million Annual Program: Successful May rotation converts to everyday recurring placement in 309 clubs after exceptional sales velocity achieved.
- Positive Cash Flow Anticipated: The everyday program represents a significant step increase in production volume, enabling continuous production of four core dried fruit chips. The resulting production scale is expected to increase manufacturing efficiency and drive BranchOut to positive operating cash flow.
- Additional Growth Opportunity: The retailer is evaluating a second Tropical Mix multipack featuring mango, pineapple, and banana for a rotational placement early next year.
BEND, Ore., June 30, 2026 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a leading food technology company pioneering the next generation of natural fruit and vegetable snacks through its proprietary GentleDry process, today announced that the nation's second-largest warehouse club has confirmed everyday placement of the Company's Crunchy Fruit Chips following a highly successful May rotation.
The product will transition to everyday status in 309 clubs starting in September, representing approximately $8 million in expected incremental annual revenue for BranchOut. Throughout the May rotation, the product consistently performed at the highest end of the retailer's velocity thresholds, demonstrating strong member demand for differentiated Crunchy Fruit Chips made possible by BranchOut's proprietary GentleDry technology.
The retailer is also evaluating a second item, a Tropical Mix multipack featuring mango, pineapple, and banana, for rotational testing early next year. If successful, the launch would further expand BranchOut's presence with one of the nation's largest retailers while validating the Company's ability to repeatedly develop innovative products enabled by its proprietary GentleDry technology.
"We're thrilled with the results of the rotation and appreciate the collaboration we've had with our retail partner throughout this program," said Eric Healy, CEO of BranchOut Food. "Converting to everyday placement is an incredible milestone for BranchOut. Beyond the recurring revenue, this program allows us to operate our production facility more efficiently through consistent manufacturing of our core fruit products. It's another strong validation of both our proprietary GentleDry technology and the growing consumer demand for premium dried fruit snack options."
A Transformational Milestone for BranchOut
In just 18 months since opening its production facility in Peru, BranchOut has invested heavily by expanding its manufacturing capabilities, developing a growing portfolio of innovative products, securing leading retail customers, and building the commercial foundation to scale the business.
The conversion from a limited-time rotation to a recurring everyday placement represents a significant milestone and the realization of those investments. In addition to creating a highly visible branded recurring revenue stream, the program enables BranchOut to maintain continuous production of four of its core dried fruit chip varieties, improving factory utilization, increasing manufacturing efficiency, lowering unit costs, and supporting stronger gross margins.
Based on the Company's internal operating model, management expects the incremental revenue and consistent production volume from this program to enable BranchOut to achieve positive operating cash flow. Combined with the Company's growing pipeline of new products and customers, management believes this marks an important inflection point as BranchOut transitions from investing in its manufacturing platform to leveraging it for sustained profitable growth.
Working Capital Financing
In connection with the production ramp-up for the new everyday program, BranchOut has entered into a $1.0 million non-convertible working capital loan with Kaufman Kapital LLC. The loan bears interest at 8% per annum and contains no conversion feature, warrant coverage, equity-linked consideration, or registration rights. Proceeds are expected to be used primarily to fund raw material purchases and support increased production volumes associated with the new program. The loan is separate from, and does not amend or modify, the Company's existing convertible note with Kaufman Kapital LLC.
About BranchOut Food Inc.
BranchOut Food is a leading international food technology company, specializing in the production of high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry technology. This next-generation dehydration method preserves up to 95% of the original nutrition of fresh produce, offering superior quality and taste. Protected by over 18 patents, BranchOut's technology enables it to stand out as a trusted brand, ingredient and a private-label supplier. For more information, visit www.branchoutfood.com or follow us on social media here.
For more information:
ir@branchoutfood.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "position," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
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