Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 2

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1
Chunk 2
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 preparation
facilities resulting in a need for pre-cooked and prepared foods similar to those we provide. The expansion in the food service industry
has also been accompanied by the continued consolidation and growth of broadline and specialty food service distributors, many of which
are long-standing customers.

Frozen Food Products
– Retail Customers

The majority of our existing
and targeted retail customers are involved in the resale of branded and private label packaged foods. The same trends which have contributed
to the increase in away-from-home meal preparation have also fueled the growth in easy to prepare, microwaveable frozen and refrigerated
convenience foods. Among the fastest growing segments is the frozen and refrigerated hand-held foods market. This growth has been driven
by improved product quality and variety and the increasing need for inexpensive and healthy food items that require minimal preparation.
Despite rapid growth, many categories of frozen and refrigerated hand-held foods have achieved minimal household penetration. We believe
we have been successful in establishing and maintaining supply relationships with certain selected leading retailers in this market.

Frozen Food Products
– Sales and Marketing

Our frozen food business covers
the United States. Products produced by the Frozen Food Products segment are generally supplied to food service and retail distributors
who take title to the product upon shipment receipt. The Company plans to shift away from Company-leased long-haul vehicles toward less
costly transportation methods such as common carriers. In addition to regional sales managers, we maintain a network of independent food
service and retail brokers covering most of the United States. Brokers are compensated on a commission basis. We believe that our broker
relationships, in close cooperation with our regional sales managers, are a valuable asset providing significant new products and customer
opportunities. Regional sales managers perform several significant functions for us, including identifying and developing new business
opportunities and providing customer service and support to our distributors and end purchasers through the effective use of our broker
network.

 4 

Our annual advertising expenditure
is directed towards retail and institutional (foodservice) customers. These customers participate in various special promotional and marketing
programs and direct advertising allowances we sponsor. We also invest in general consumer advertising in various periodicals, and coupons
to advertise in major markets. We direct advertising toward food service customers with campaigns in major industry publications and through
our participation in trade shows throughout the United States. Our advertising strategy includes our presence on social media and online
distribution of promotional material.

Snack Food Products

During fiscal year 2024, our
snack food