Business
BranchOut Food Secures Large Scale Production Facility in Peru Capable of $40M in Production Capacity; Estimated 40-50% Gross Margins
Build out to begin immediately, with production expected to commence in the third quarter LIMA, Peru, May 14, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc.
About this update from Branchout Food Inc.
[{"type":"text","content":"Build out to begin immediately, with production expected to commence in the third quarter\nLIMA, Peru, May 14, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a pioneering food technology company and producer of dehydrated fruit and vegetable-based products, today announced that it has signed a long term lease for a 50,000 square foot production facility in Peru. Under the terms of the agreement, BranchOut Food has the first right to purchase the facility at a fixed price at any point during the 10-year term. The Company has expanded its operations in Peru and moved to 100% vertical integration in response to consistent and increasing demand for its branded and white-label products from some of the largest retailers in the US. “Our current large-scale, continuous throughput dehydration machine will be moved into our new space. In addition, our second machine, which is currently on order, will be shipped to Peru and installed in the next couple months. Our new facility will be 100% owned and operated by BranchOut. We estimate the facility has $40 million in production capacity, with additional space to grow as needed,” stated Eric Healy, CEO of BranchOut Food. “We are very proud of our significant growth over the last 12 months, which has included repeat orders from the nation’s largest warehouse club and the nation’s largest retailer, among other retailers across the country. Establishing our own production facility in Peru, one of the world’s most abundant fruit and vegetable growing regions, will allow BranchOut Food to control every step of the production process, including quality control, planning, and cost of goods. Additionally, we expect gross margins to grow to 40-50% as our production capacity increases,” concluded Mr. Healy. BranchOut Food has built strong relationships with a large network of local farmers in Peru, enabling the Company to select the freshest raw produce at the lowest cost. The location provides access to an ample supply of labor and has direct and free trade routes with the US. About BranchOut Food Inc. BranchOut Food is an international food-tech company delivering truly great natural snacks and real superfood ingredients enabled by its licensed dehydration technology. The company’s GentleDry Technology is the next generation in dehydration technology, preserving up to 95% of the origina...