BranchOut Food Inc., which provides dehydration technology, has signed a definitive agreement with MicroDried, a provider of dried fruit and vegetable ingredients to the food and beverage industry.
This partnership expands MicroDried’s portfolio by integrating BranchOut’s GentleDry technology, enhancing the range of high-quality ingredient solutions available to food manufacturers worldwide.
Under the agreement, BranchOut and MicroDried will collaborate to drive large-scale production through BranchOut’s new 50,000 square foot high-efficiency Peru facility, complementing MicroDried’s established portfolio of premium dried ingredients. The collaboration is expected to generate $5m-6m in annual ingredient sales, with additional growth anticipated as food manufacturers seek versatile, high performance dried ingredient options. This arrangement marks a major milestone in BranchOut’s rapid expansion into the industrial ingredient market of its GentleDry technology.
“This partnership is a natural fit,” said Eric Healy, CEO of BranchOut Food.
“MicroDried has built an exceptional reputation as a trusted supplier of dried ingredients to some of the world’s leading food brands. By integrating our GentleDry technology with their proven market expertise, we can provide top food manufacturers with additional innovative solutions to meet shifting industry demand.”
According to the companies, the move is a strategic fit for several reasons.
Regarding total addressable market, with freeze-dried ingredients representing a $36bn global market and growing 7.6% annually (CAGR), the demand for high-quality, minimally processed ingredients continues to rise. This agreement positions BranchOut to compete in this expanding market with its proprietary GentleDry technology.
With more than a decade of experience and strong relationships with top food manufacturers, MicroDried said it enhances BranchOut’s reach by introducing GentleDry to a broad customer base.
MicroDried’s portfolio of fruit and vegetable ingredients, including its proprietary drying technology, now includes GentleDry processed options, offering food manufacturers greater formulation flexibility and access to dried ingredients.
Rising raw material costs, supply chain shifts, and consumer demand for clean-label, minimally processed foods require versatile drying technologies that maintain nutritional integrity and quality.
The ingredient business is one of three key sales channels for BranchOut, complementing its branded retail and private label divisions. Additionally, the company is preparing to launch its branded direct-to-consumer e-commerce platform, further expanding its market reach to strengthen its position in next-generation dried foods.
By adding BranchOut’s GentleDry technology to its portfolio, MicroDried said it continues its commitment to providing customers with the best possible ingredient solutions to meet their needs.
“As the food industry evolves, we recognize the importance of offering a wide range of high-performance solutions,” said Steve Nugent, director of sales at MicroDried.
“This collaboration allows us to provide our customers with additional offerings while maintaining the same high standards of quality, safety, and innovation that define the MicroDried brand.”
