Barfresh Provides 2nd Quarter, 2016 Update on Recent Business Progress
Second Quarter Sales Grow More Than 100% Sequentially
Company Enters Multiple In-Market Tests with Major National Chains
BEVERLY HILLS, Calif., Aug. 15, 2016 (GLOBE NEWSWIRE) -- Barfresh Food Group, Inc. (OTCQB: BRFH), a manufacturer of frozen, ready-to-blend beverages, is providing an update on recent business developments. In addition, the Company is filing its form 10-Q for the second fiscal quarter of 2016 ended June 30, 2016, with the SEC today.
Riccardo Delle Coste, the Company's CEO stated, "In the second quarter, we have dramatically expanded our customer base including colleges and universities, hospitals, recreation and leisure locations, and casinos. Sales for the second quarter were $560,000, double our first quarter sales, and exceeded the entire twelve months ended December 31, 2015. In addition, the successful establishment of our national distribution network has now paved the way for the signing of a supply agreement with a major global on-site foodservice operator. But perhaps the most exciting development for us this quarter is the launching of multiple in-market tests in major national chains. We are looking forward to progress continuing through the back half of the year as sales from these initiatives continue to expand."
- Progress within national account pipeline – We have recently begun in market tests with major national key accounts. These in-market tests mark key milestones in the process of ultimately achieving national roll-out of our product in targeted national accounts.
- Cutting Edge Solution Initiative – Selection of five of our product offerings to the "Cutting Edge Solution Initiative" of North America's largest food service distributor has led to accelerating sales momentum during the current quarter. Sales velocity and volume are benefiting from the distributor's increased focus and investment in rolling out these initiatives.
- Supply Agreement with a Major Global On-Site Foodservice Operator – The Company announced that one of the nation's largest foodservice management companies that operates on-site foodservice locations on behalf of its clients signed a supply agreement with Barfresh after a successful in-market test. The agreement makes Barfresh's suite of blended beverages available across the customer's diverse customer base in its Education, Healthcare, Sports & Entertainment, and Business & Government channels in the US and Canada, representing over 2,000 customer accounts. This agreement consists of a multi-year contract and also includes the deployment of Barfresh branded merchandising including menu boards and signage.
- Patent & Trademark Office Approves U.S. Patent Application – Barfresh was notified by the United States Patent and Trademark Office that its U.S. patent application was approved. The Company's global patent coverage will span 16 countries following the inclusion of the U.S. patent grant. The patent covers a sealed pack of ingredients for making an individual smoothie and a method for making an individual smoothie.
- Board of Directors Expansion – The Company appointed Alexander H. Ware to the Company's Board of Directors as an independent director, bringing the total number of Directors to six. Mr. Ware brings over 30 years of experience in growth management, capital markets including M&A transactions, process improvement, and strategic planning. He is currently the Executive Chairman of MStar Holding Corp., the country's leading provider of beer keg rental, leasing, and logistics services. MStar is a minority investment of Pohlad Companies, a significant family office based in Minneapolis, MN at which Mr. Ware previously served as a Senior Advisor and Executive Vice President. Prior to joining Pohlad Companies in 2010, Mr. Ware had over fifteen years of financial experience with PepsiCo and PepsiAmericas, where he held a number of positions of increasing responsibility, culminating in his appointment as Chief Financial Officer at PepsiAmericas, a $5 billion publicly traded company that was the world's second largest bottler of PepsiCo products.
- Sales Update – For the three month period ended June 30, 2016, sales were $559,112, an increase of over 230% from the year-ago quarter, and more than double our first quarter 2016 sales of $275,325. Preliminary sales estimates for the month of July represent over 40% of the entire second quarter of 2016 sales so we expect the third quarter sales to be another strong sequential increase.
The Company's President, Joe Cugine said, "Our sales performance in the second quarter is a strong improvement on a sequential basis and we are even more excited about the many new doors we are selling into as we enter the third quarter of 2016. Our recently signed agreement with one of the major global on-site foodservice operators will also help us further expand, and we are excited about the prospects. Engagement with this level of national partner has been made possible by the establishment of our product in national distribution. And the fact that we have now moved into in-market tests with a number of leading national chains puts an exclamation point on our progress in the quarter. We are confident that these opportunities will continue to translate into growing sales results."
Joseph Tesoriero, the Company's CFO, added, "Operationally, the business is in an excellent place with our second manufacturing facility in Arkansas beginning to produce product during the quarter, and at the same time our supply chain is constantly improving. Cost management and customer service are paramount for us during our initial ramp up with new customers and we're very focused on leveraging each and every opportunity."
The conference call to discuss these results is scheduled for today, August 15, 2016, at 1:30 pm Pacific Time (4:30 pm Eastern Time). Listeners can dial (877) 407-4018 in North America, and international listeners can dial (201) 689-8471. Participants from the Company will be Riccardo Delle Coste, Founder and CEO, Joseph Cugine, President, and Joseph Tesoriero, CFO.
A telephonic playback will be available approximately two hours after the call concludes and will be available through Monday, August 29, 2016. Listeners in North America can dial (877) 870-5176, and international listeners can dial (858) 384-5517. Passcode is 13643098.
Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the company's website at www.barfresh.com in the Investors-Presentations section. A replay of the webcast will also be available for approximately 30 days following the call.
About Barfresh Food Group
Barfresh Food Group, Inc. (OTCQB: BRFH) is a developer, manufacturer and distributor of ready-to-blend beverages, including smoothies, shakes and frappes, primarily for restaurant chains and the foodservice industry. The company's proprietary, patented system uses portion-controlled pre-packaged beverage ingredients that deliver freshly made frozen beverages that are quick, cost efficient, better for you and without waste. PepsiCo North America Beverages, a division of PepsiCo, Inc., is the exclusive sales representative in North America within the food service channel for Barfresh's full line of beverages. Barfresh has an exclusive distribution partnership with the leading food distributor in North America. For more information, please visit www.barfresh.com.
Forward Looking Statements
Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the Company's commercial progress and future financial performance. These forward-looking statements are identified by the use of words such as "grow", "expand", "anticipate", "intend", "estimate", "believe", "expect", "plan", "should", "hypothetical", "potential", "forecast" and "project", among others. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company and may not materialize. Investors are cautioned that any such statements are not guarantees of future performance. The contents of this release should be considered in conjunction with the warnings, risk factors and cautionary statements contained in the Company's recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10K and Quarterly Report on Form 10Q. Furthermore, the Company does not intend, and is not obligated, to update publicly any forward-looking statements, except as required by law.