Good Wednesday morning, friends and fellow traders. We weren't planning on an early edition of the newsletter today, but this is one we just couldn't wait until the end of the day to send. See, good news travels fast, and we want to make sure you're aware of something before anybody else sees the press release we saw this morning from one of our Featured Stocks at the site... a name we've mentioned here in the newsletter before. Just like the headline said, little ol' Barfresh Food Group (BRFH) and the North American arm of beverage giant PepsiCo (PEP) have teamed up, and the latter is using its enormous distribution network to sell the former's brilliant pre-packaged smoothie mix. The best analogy I can make is, a product that was selling just fine off the shelves of the 660 Fred's (FRED) retail stores suddenly got picked up by Wal-Mart (WMT), who wants to put the product on the shelves of its 5000 stores. In an instant, everything changed for the better in an enormous way. You couldn't ask for a better distribution partner than PepsiCo, which generated $66 billion worth of revenue last year. These guys clearly know what they're doing, Remember Barfresh? I don't know how many of you have been following the saga of Barfresh Food Group at the website, but just to make sure we're all on the same page before getting to the heart of today's newsletter, let's give it a brief once-over. If you've ever tasted a smoothie, you know they're delicious. If you've ever made a smoothie, though, you know they're a pain to make. They require a lot of ingredients and a lot of preparation. Moreover, they're difficult to proportion, and they're messy as well as time consuming. A lot of restaurants would love to put them on the menu, but for all the reasons we just noted, restaurateurs can't justify the headache and expense. That's how places like Smoothie King and Planet Smoothie have managed to carve out a piece of the United States' $2.4 billion market smoothie market - they specialize in doing one thing well, and are always ready to take on the task... because they don't have to do anything but make smoothies. But, what if restaurants, drink stands, bars, and other food venues had an EASY, FAST, and COST-EFFECTIVE way to make smoothies? This is what Barfresh has done. Through its wholly-owned subsidiary Smoothie Inc, BRFH has mastered the fine art of putting all the necessary ingredients of a smoothie - including the ice - into a packet that simply needs to be opened and poured into a blender. Just add a pre-set amount of water to the mix, blend for a few seconds, and out comes a perfect, great-tasting frozen treat. No waste. No mess. No problem. All of a sudden, restaurants that just didn't feel like they had the time, money, or manpower to get into the lucrative smoothie business CAN get into the smoothie business. Yes, PepsiCo Though the product has been around for a little while, for most intents and purposes the company didn't flip the "on" switch until the second quarter of this year. That's when the number of salespeople in the U.S. (the product was developed and launched in Australia before coming here) jumped from 3 to 23, and some new key management was put into place. Things were going good too. In August we learned Barfresh drove a 173% improvement in sales for calendar Q2 (fiscal Q1), but more than that, we learned the company was starting to turn heads within the restaurant and distributor world. Namely, it added 500 new customers to its rolodex last quarter, though had only shipped product to about a third of them; the other two-thirds had not yet received any product. Better still, the country's largest food distributor added Barfresh pre-packaged smoothies to its product list, although as of the end of the recently-reported quarter, about 60% of them had yet to receive any product to sell. All those others should have begun offering the product in the meantime. Based on what we saw at the time, we were encouraged by the inaugural sales effort - the next quarter was setting up to be a big one as all the customers that were on board but not yet buying the product as of calendar Q2 would start buying in Q3. As it turns out, Barfresh was thinking WAAAYYYYY bigger. Good thing they were. Fast forward to today. Per this morning's press release, the restaurant distribution arm of PepsiCo - PepsiCo North American Beverage - is now exclusively marketing Barfresh's pre-packaged smoothie product to U.S. restaurants. That wasn't a misprint or a misstatement... the country's biggest beverage distributor to restaurants (and I would argue the best) is now selling Barfresh pre-packaged smoothies. It's tantamount to winning the lottery. I wish I could tell you exactly how big this was for the company, but I honestly can't. I can tell you, however, that PepsiCo's North American beverage division generated about $20 billion in revenue last year, and I'll guess about half of that was through restaurants. So, even if Barfresh snags only 0.2% of that $10 billion or so in restaurant beverage revenue, we're still talking about $20 million in sales for BRFH... and that's in addition to the other business Barfresh wins on other fronts It's just back-of-the-envelope math, but you get the idea, and the scope - this is a game-changer. Or, think about it in these terms: We mentioned above that smoothies are a $2.4 billion industry in the United States. That's with an estimated 2000 or so smoothie venues like Planet Smoothie and Smoothie King, and a handful of others that may or may not be recognizable names in the business. There are 616,000 restaurants in the United States, however - most of which don't yet serve smoothies - that are collectively generating more than $700 billion in annual sales. Even a small 0.2% of that market translates into more than a billion dollars. The question is, which pipeline would you rather be in? Answer: The bigger one, particularly when you've got a product as unique and marketable to the restaurant industry as the one Barfresh has. I have no idea how, or even if, the market will respond to the news. But, I think you'll agree... based on everything you just read, this could be a defining moment for the company. I've got a feeling the market is going to pick up on it pretty quickly, which is why we wanted to let you know ASAP - Barfresh just knocked one out of the park. Here's the press release, in its entirety. Barfresh Announces Exclusive Sales Agreement With PepsiCo North America Beverages Barfresh and PepsiCo North America Beverages Establish Alliance to Sell Barfresh Ready-to-Blend Smoothies and Frozen Beverages Throughout North America BEVERLY HILLS, Calif., Oct. 28, 2015 (GLOBE NEWSWIRE) -- Barfresh Food Group, Inc. (BRFH), a leader in the ready-to-blend frozen beverage category, is pleased to announce that it has signed an agreement with PepsiCo North America Beverages, a division of PepsiCo, Inc. (PEP), to become its exclusive sales representative within the foodservice channel to present Barfresh's line of ready-to-blend smoothies and frozen beverages throughout the United States and Canada. The agreement also includes certain rights regarding new international markets where Barfresh currently does not sell its products and brand extensions into grocery stores within the United States and Canada. Barfresh beverages are pre-portioned and perfectly consistent every time. The current blended line of smoothies, shakes, and frappes contain no preservatives and no artificial flavors or colors, are gluten free, kosher certified and the smoothies are made with real fruit. The Barfresh process is simple - requiring only a blender, which reduces labor, eliminates waste and creates higher profit margins for operators. "We are incredibly proud to partner with PepsiCo North America Beverages to expedite the expansion of our beverage offering to such a wide range of foodservice and restaurant operators. We expect this agreement will lead to significant revenue growth for our company in calendar 2016 and beyond," said Riccardo Delle Coste, CEO of Barfresh Food Group. "Through our agreement with PepsiCo North America Beverages, we can now be included as part of its offerings to a significant base of customers. Additionally, we will be able to fast track our growth and expedite the test to market process with large national accounts. There is significant opportunity for Barfresh in the $25BN frozen blended beverage category and this exclusive agreement with PepsiCo North America Beverages will help to accelerate our continued growth in North America and beyond." "PepsiCo offers consumers and customers a wide array of food and beverage choices from our comprehensive product portfolio," said Kirk Tanner, President of PepsiCo Global Foodservice. "We're pleased to now include Barfresh's high-quality, great-tasting smoothies and frozen beverages as another platform we can present to our foodservice customers. This is a fast-growing category that will add value for our partners." About Barfresh Food Group Barfresh Food Group, Inc. (BRFH) is a developer, manufacturer and distributor of ready-to-blend beverages, including smoothies, shakes and frappes, primarily for restaurant chains and the foodservice industry. The company's proprietary, patented and patent pending system uses portion-controlled pre-packaged beverage ingredients that deliver freshly made frozen beverages that are quick, cost efficient, better for you and without waste. Barfresh has an exclusive distribution partnership with the leading food distributor in North America. For more information, please visit www.barfresh.com.