Adds New Smoothie Carton Manufacturing Capacity

Already begins replacing lost bottle capacity with new Smoothie Cartons

LOS ANGELES, Nov. 11, 2022 (GLOBE NEWSWIRE) — Barfresh Food Group, Inc. (the “Company” or “Barfresh”) (Nasdaq: BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, officially announced today its new 7.6oz ready-to-drink “Smoothie Carton”. This offering began selling into the school channel during October, is economically and ecologically friendlier than the original bottle format and generates higher margin as well.

The Company now has two continuing Twist & Go manufacturers, including one bottle and the new carton manufacturer, to offset the recently disclosed lost capacity from its third Twist & go manufacturer.   The Company now has a significant amount of available Smoothie Carton capacity that it will be able to grow into as it enters new regional markets and increases market penetration in existing regions. The new Smoothie Cartons and expanded capacity were initially intended to be incremental business; however, in light of its recently announced issues with one of its Twist & Go manufacturers, the Company has already commenced transferring some of that lost smoothie bottle volume to Smoothie Cartons and expects to be able to have the majority of lost volume switched over during the course of the first quarter of 2023.

The Company has been working on a number of cost savings initiatives over the past year and the Smoothie Carton launch was one of those initiatives. The Smoothie Cartons were specifically designed to allow the Company to target the larger school districts as well as districts that are unable to use single use plastics for sustainability reasons.

Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, “I’m excited to announce that after successfully completing all testing and trials in the third quarter, we began shipping product to school customers in October. The feedback we received during the trials was very encouraging and we are excited about our ability to convert existing bottle customers where needed to also be carton customers, as well as win new customers. The product also fits nicely with the emerging trend in schools to move towards more environmentally friendly products and showcases how we are constantly working to meet our customer’s changing needs. Additionally, the new product was designed to allow us to aggressively pursue high volume accounts.”

Mr. Delle Coste continued, “As part of our initiative to lower costs and improve margins, the Smoothie Cartons deliver on this promise by providing significantly increased margins that are more in line with our 2021 margin profile. As a result, this will accelerate the path to sustainable profitability and positive cashflow.”

About Barfresh Food Group

Barfresh Food Group, Inc. (Nasdaq: BRFH) is a developer, manufacturer and distributor of ready-to-blend and ready-to-drink beverages, including smoothies, shakes and frappes, primarily for the education market, foodservice industry and restaurant chains, delivered as fully prepared individual portions or single serving and bulk formats for on-site preparation. The Company’s single serving, on-site prepared product utilizes a proprietary, patented system that uses portion-controlled pre-packaged beverage ingredients, delivering a freshly made frozen beverage that is quick, cost efficient, better for you and without waste. Barfresh has a distribution partnership with the leading food distributor in North America. For more information, please visit

www.barfresh.com


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Forward Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking, including statements about the Company’s commercial progress, success of its strategic relationship(s), and projections of 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”, “continue,” “could,” “may,” “predict,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. 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. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The contents of this release should be considered in conjunction with the Company’s recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including any warnings, risk factors and cautionary statements contained therein. Furthermore, the Company expressly disclaims any current intention to update publicly any forward-looking statements after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

Investor Relations


John Mills

ICR

646-277-1254


[email protected]

Deirdre Thomson

ICR

646-277-1283


[email protected]

A photo accompanying this announcement is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/db98e739-6861-40ce-97b3-ea701b357345