Barfresh Food Group announced that it has received final approval for a $2.4 million government grant to fund the completion of a 44,000‑square‑foot manufacturing plant in Defiance, Ohio. The grant will cover the last phase of construction and the installation of specialized equipment that will enable full‑scale production to begin in 2026.
The grant reduces the capital burden associated with the recent acquisition of the 15,000‑square‑foot Arps Dairy facility and the new plant’s construction. By removing a $2.4 million cash outlay, Barfresh improves its balance sheet, increases liquidity, and frees cash that can be deployed toward marketing, distribution, and further product development. The cost savings from eliminating third‑party manufacturing fees, freight, and cold‑storage expenses are expected to lift gross margins as the company gains tighter control over ingredient procurement and quality.
Barfresh’s core product portfolio is already being produced at the Arps Dairy site, which now accounts for roughly 90 % of the company’s revenue mix. In Q3 2025, the company reported sales of $4.23 million, up 16 % from $3.64 million in Q3 2024, and a net loss of $0.29 million versus a $0.513 million loss in the prior year. The acquisition of Arps Dairy, completed in early October 2025, has already contributed to this revenue growth and positioned the company to scale production without the higher cost structure of third‑party manufacturers.
The new facility will house state‑of‑the‑art cold‑chain equipment, automated packaging lines, and a dedicated research and development lab. These assets will support the expansion of the Pop & Go freeze‑pop line into the lunch daypart, targeting school and office markets that have shown strong demand for convenient, healthy snack options. By 2026, Barfresh expects the Defiance plant to operate at full capacity, providing the scale needed to meet projected demand and to support the company’s guidance for a 126 % increase in fiscal 2026 revenue.
CEO Riccardo Delle Coste emphasized that the grant “de‑risks the capital investment for the new plant and accelerates our transition to an integrated manufacturing model.” He added that the company’s focus on cost discipline and strategic investments in high‑margin product lines will drive profitability in fiscal 2026, as the new facility’s operational leverage and reduced logistics costs are expected to lift gross margins beyond the 37 % achieved in Q3 2025.
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