Producing private label snacks is where it is at, claims BranchOut Foods Inc, after releasing its first earnings report today as a public company. 

The dehydrated produce snack maker took its avocado chips and banana bites business to the NASDAQ in early June, raking in over $7 million from the move; today, BranchOut reported its revenue jumped 325% to $1.1 million in Q3 alone.

The company expects a slate of new retail commitments to fuel Q4’s revenue growth even further and likely outpace this past quarter’s gains. According to the release, its top-selling SKU rolled out to SoCal area stores of “nation's largest warehouse club” (Costco 👀) and will expand to the retailer’s Bay Area stores next quarter. The snacks also made their first foray into c-stores through a deal with 300 Jacksons Food Stores locations.

But BranchOut’s own branded produce snacks aren’t driving that performance. Ahead of its IPO, the company announced a strategy shift to focus on private label products and opened a new, larger production facility outfitted with its proprietary GentleDry dehydration tech. Why does that matter?

• The new Peru-based facility increased BranchOut’s annual run rate capacity from $1 million to $30 million.  
• The company claims to operate with very low overhead costs and the new facility is located within a reasonable proximity to where it sources its produce, reducing the logistics (and cost) of getting produce from farm to factory.
• The company has also been contracted by the U.S. military to aid in the production of MREs (Meals Ready-to-Eat) meaning it has even more un-branded business ahead.

 "Our June IPO was perfectly timed as it gave us the resources to ramp up our production to meet the increasing demand of our many retailer partners. This is just the beginning," said CEO Eric Healy.

Catch up on BranchOut’s path to the public markets on NOSH.

Certainly economic uncertainties and higher interest rates have tightened the market for investment in CPG brands. So what’s a brand to do? One entrepreneur suggests thinking smarter and making resources go farther. 

At NOSH Live Winter 2023, attendees will hear from LesserEvil president and CEO Charles Coristine about the ways the snack brand maintains a focus on capital efficiency. The result: new products, new retail channels, new investment capital and new manufacturing facilities. Every quarter the company has broken-even or been profitable as it flexes between building margin and revenue muscle. 

Register for NOSH Live Winter 2023 and take advantage of NOSH Live early registration pricing through October 21.

Paris Hilton and her media company, 11:11, have partnered with X (a.k.a. old Twitter) to transform the social media platform into a one-stop shop, according to an announcement this week. Hilton will produce original content promoting X’s new initiatives in live video and live commerce, per terms of the deal.

• Hilton will work with X to create four original video programs per year with live shopping experiences that let her followers “browse through a catalog” and make a purchase in X’s in-app browser.
• Last month, TikTok rolled out its new shopping feature to all 150 million users across the U.S. The feature offers four main “products” including live shopping streams, shoppable videos, product collections and the shop tab. 

Meta (Facebook and Instagram) has also tried, and ultimately failed, to make its attempts at live shopping work and instead primarily rely on ads for revenue growth. Will X succeed on this one? Only time will tell. 

Go Deeper: What does TikTok Shop Mean For CPG?

Mycelium-based food startup Meati announced today that it has received a patent for its Neurospora crassa (MushroomRoot)-based invention and will hold exclusivity on the invention until 2039. 

Additionally, Meati completed an AI-driven study on MushroomRoot’s health benefits with life sciences company PIPA and found early signs the ingredient can enhance cardiovascular health and addresses “prevalent nutritional deficiencies.” 

• Meati was founded in 2017 and currently produces a line of steaks and cutlets available at retailers such as Whole Foods Market, Sprouts and Fresh Thyme. 
• The news comes one month after Meati announced another round of layoffs and plans to shutter its Boulder, Colorado pilot plant as it seeks to prioritize profitability. 
• In early September, Meati announced it brought in $50 million from a Series C extension.

Back to his roots or just taking care of “unfinished business”? Rob Maxwell has returned to Grandy Organics as COO after nearly four years away. 

Maxwell served as COO and acting CEO during his first tenure at the granola company between 2016 and 2019. He left to let co-founders Aaron Anker and Nat Pierce “sort out… their path forward” and has now returned as the company prepares to open its new 10,000 square foot warehouse.

• In other people moves, British frozen novelty brand Doughlicious has brought on former My/Mochi CMO Russell Barnett as its new managing director while the company readies to expand outside the UK.
• Food tech holding company Rä Foods has brought on finance industry veteran Barry Didato as president to help run its three brands: Wild About Sprouts, Mixmi Frozen Yogurt and Wild About Bread.
• Celebrity chef Brian Malarkey’s premium oil brand Chefs Life has named Jaime Schapiro as CEO.

Read on for more recent hirings in CPG food.