BranchOut Food Inc. has secured an estimated $2 million order for a new Tropical Mix multipack featuring its Crunchy Pineapple, Mango, and Banana Chips from the nation's second-largest warehouse club. The order is scheduled for shipment in December with in-club placement beginning in January. This development underscores the retailer's confidence in the BranchOut brand and its proprietary GentleDry™ technology, following a recent commitment to an estimated $8 million annual everyday program for the company's Crunchy Fruit Chips.

The new Tropical Mix combines three of BranchOut's top-performing fruit chips into a convenient multipack designed for warehouse club shoppers. This format offers portion-controlled servings and multiple flavors, catering to occasions such as school lunches and family sharing. The product complements the company's existing everyday family-size mixed fruit bag by serving a different eating occasion, allowing BranchOut to expand its presence within the retailer's snack category.

Expansion Opportunity

If the Tropical Mix multipack achieves the retailer's required sales velocity, it has the potential to transition from a limited-time placement to an everyday item. This would mean the product becomes a permanent fixture stocked year-round, significantly expanding BranchOut Food's distribution and revenue potential. Such a transition would also improve factory utilization, manufacturing efficiency, and operating leverage as production volumes grow.

Order Details

BranchOut Food Inc. has secured an estimated $8 million annual revenue program with the nation's second-largest warehouse club, transitioning its Crunchy Fruit Chips to everyday placement in 309 clubs starting in September. The move follows a highly successful May rotation where the product consistently performed at the highest end of the retailer's velocity thresholds. The everyday program represents a significant step increase in production volume, enabling continuous production of four core dried fruit chips and driving the company toward positive operating cash flow.

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.

Financial Impact and Operational Efficiency

The conversion from a limited-time rotation to a recurring everyday placement is expected to improve factory utilization, increase manufacturing efficiency, lower unit costs, and support 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.

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.

Strategic Milestone

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 to everyday placement marks an important inflection point as BranchOut transitions from investing in its manufacturing platform to leveraging it for sustained profitable growth.