Barfresh Provides Update on First Quarter 2020 and Recent Business Expansion

LOS ANGELES, June 25, 2020 (GLOBE NEWSWIRE) -- Barfresh Food Group, Inc. (OTCQB: BRFH), a manufacturer of frozen, ready-to-blend and ready-to-drink beverages, is providing an update on recent business Expansion in conjunction with the filing of its form 10-Q for the first quarter ended March 31, 2020.

Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, “During the first quarter, our Company like many others who operate in the foodservice industry, was temporarily affected by the COVID-19 pandemic.  We saw a reduction in orders for our Bulk and Single Serve products from our foodservice customers such as restaurants and schools as they temporarily shut their doors due to the pandemic.  However, the speed and agility by which our Company operates allowed us to expedite our new bottled smoothie, Twist & Go^TM, in order to service those schools still providing students with meals.  The initial response to this product from the school channel has exceeded our expectations and we expect this offering to increase our penetration with new and existing school districts in the upcoming school year.  As an example of this opportunity, we shipped approximately 480,000 Twist & Go^TM bottles to Pasco County Schools during the second quarter over a two month period.”

Mr. Delle Coste continued, “I’m very proud of the work we’ve done within our school channel to leverage our IP to create a new product that is compliant with USDA reimbursable meal programs and fits the needs of students and administrators.  We have already begun working with two leading school districts in Florida and expect to roll this product offering to many more additional districts in the coming months.  Regarding our QSR expansion, due to COVID-19 our 3,000 plus QSR launch has been put on hold. We have a very good working relationship with this company and we will stay engaged with them as circumstances in their business change.”

Mr. Delle Coste concluded, “Our Company has also made great progress on the cost management side by continuing to reduce our operating expenses, improve our cost structure and sustain a healthy gross margin level.  We are well positioned for continued growth and expansion with each of our sales channels once the temporary challenges posed by COVID-19 subside.”   

COVID-19 Commentary

The impact of COVID-19 on the Company is evolving rapidly with events unfolding on a daily and weekly basis.  The Company has been closely monitoring the situation and taking the appropriate steps necessary to comply with State orders and protect the safety of employees.  At this time, Barfresh has not experienced a disruption to its supply chain for the manufacturing of products due to COVID-19.  However, during the last few weeks of the first quarter shelter-in-place orders began to go into effect causing the temporary closure of foodservice businesses and restaurants and negatively impacting sales for the Company’s single serve product.  In addition, many school districts have closed regular school attendance, directly impacting sales of Barfresh’s Bulk Product into that sales channel.