Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 286

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 286
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 that the shift in consumer tastes driving the growth of
natural and plant-based alternatives will continue for the foreseeable future as consumers become better educated on nutrition and focus
on health and wellness. There is also clear evidence that an increasing number of natural and plant-based products in stores are moving
beyond the natural and specialty segments and into conventional grocery stores. The continuation of these trends should benefit BranchOut
as we seek to penetrate the very large overall grocery market.

Continued
Expansion of Distribution Footprint

Currently,
our products are marketed and sold through a diverse set of physical retail channels, including grocery chains, club stores, specialty
and natural food outlets, and on our website at www.branchoutfood.com. Maximizing potential distribution would be a key growth
driver for BranchOut and our goal is to expand distribution so that our products are available wherever our customers choose to shop,
whether it be a retail store, food service environment or directly online. While expanding distribution, we plan to simultaneously increase
our brand awareness through an extensive program of online and offline marketing initiatives to accelerate the sell-through velocity
of our products once they reach the shelves of our wholesale partners.

Maximize
Market Penetration of Existing Product Lines

We
believe that our existing snacks and nutritional powders represent a multi-billion-dollar opportunity. We believe simply penetrating
these core markets with our differentiated product lines will provide BranchOut with a large and long-duration growth opportunity. In
the near-term, BranchOut plans to focus on growing its share within these categories. We plan to drive growth and brand recognition of
both our snacks and nutritional powders through distribution expansion and increased marketing and advertising. We plan to also attempt
to leverage our new and existing wholesale relationships to gain additional shelf space for our full suite of existing products.

 4 

Expected
Increases in Gross Margins, Fixed-Cost Leverage and a Capital Efficient Sales and Marketing Strategy Should Allow Earnings to Grow Faster
than Sales, Providing a Path to Profitability

While
generating topline growth is of primary importance to BranchOut, we are also highly focused on growing earnings faster than net sales
and achieving profitability. Our new large-scale continuous throughput dehydration machine was commissioned in September 2022 and
we completed the first production run in the first quarter of 2023.

During
2024, we completed the build out of our 50,000 square-foot facility in Peru, which commenced operations in December 2024, and utilizes
three large-scale REV machines that we recently purchased