Blue Star Foods, a seafood supplier and recirculating aquaculture system (RAS) operator, has signed a new “Master Service Agreement” to supply ingredients to a major value-added seafood meal provider.
The new agreement with the unnamed provider is expected to add USD 20 million (EUR 18.5 million) in additional revenue in 2024 to the Miami, Florida, U.S.A.-based company, Blue Star said.
“We are thrilled to join forces with this team in what is truly a transformational event for Blue Star Foods,” Blue Star CEO John Keeler said. “Under its current leadership in business development and sales, as well as its chef’s wizardry in the creation of avant garde gourmet recipes, they have built a USD 20 million annual business.”
The “fully integrated seafood provider” sources, prepares, and distributes its gourmet meals through 2,776 retail outlets and develops finished value-added meals under several brands, including retail partner private-label brands. The products range from raw retail and foodservice seafood steaks and portions to dishes such as quiche, dips, salads, and gourmet seafood entrees, Blue Star said.
Keeler said the company has identified several ways to integrate and optimize the two businesses, and the two companies will work on that process over “the next few months.”
Blue Star will assist the value-added provider with sourcing, operations, and distribution of its products.
This collaboration comes after Blue Star Foods saw decreased revenue during most of 2023, posting USD 5.1 million (EUR 4.7 million) in revenue in the nine-month period ending 30 September – less than half the USD 10.7 million (EUR 9.9 million) it posted in the same period of 2022. Despite the decrease, it posted better gross profits of USD 340,500 (EUR 315,200) – up from a loss of USD 719,000 (EUR 665,500).
Blue Star did not respond to SeafoodSource’s request for comment on the new partnership.
Photo courtesy of Blue Star Foods
