WFCF Where Food Comes From Inc

Where Food Comes From, Inc. (WFCF) (Nasdaq: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today reported accelerating growth of its Upcycled Certified® Program following acquisition of the popular certification standard one year ago.

Upcycled Certified is the world’s first and largest provider of certifications for the upcycled food chain and one of the fastest-growing certification seals in the food industry, enabling environmentally conscious consumers to shop sustainably and avoid food waste. Pet foods, snack foods and beverages are the leading products incorporating upcycled ingredients, with all three categories enjoying solid market share gains in 2024 as the upcycling trend builds momentum.

In 2024, 105 companies were certified to the Upcycled Certified standard and combined to divert approximately 1.2 million tons of food waste — the equivalent of 248 million bags of groceries. Upcycled Certified customers range from start-ups to major food producers such as Del Monte, Kerry, Kerr by Ingredion and Hershey-backed Blue Stripes. There currently are 568 products certified to the Upcycled standard, a 17% increase over the prior year. Since the program’s inception, 806 products have been certified to the standard.

One such product is POM Wonderful juice brand, which is Upcycled Certified for its liquid pomegranate extract POMxL.  “POM Wonderful is proud to have achieved Upcycled Certification,” said Brad Buchholz, VP Business Development for POM Wonderful Specialty Ingredients. “Over the past year, we’ve found that this certification resonates stronger than most with industry professionals, further underscoring our commitment to sustainability and role as a trusted global partner.”

Kathryn Britton, EVP Customer Experience at WFCF, said, “Upcycled Certified has emerged as our fastest growing program led initially by small and start-up brands that have done a great job connecting with consumer sentiment around food waste and sustainable practices. More recently, we are seeing larger, more progressive consumer packaged goods companies embracing the trend in response to evolving customer preferences. And it’s a trend that is spreading globally, as today participants are upcycling food ingredients in 14 countries.”

Vinodthan Nayagar, EVP Growth Strategy at WFCF, added “Where Food Comes From has a strong first-to-market advantage with Upcycled Certified that has given us not only an important new revenue stream but is a great fit for our bundling strategy since Upcycled Certified customers often contract for Organic and Non-GMO Project certifications. As the most diversified provider of certification services, we are ideally positioned to capitalize on this unique bundling advantage. Those customers who use Where Food Comes From as their exclusive certification body for more than one certification can reduce audit fatigue and lower their overall costs. With the total upcycled industry pegged at $46 billion and growing, our opportunity to continue expanding our Upcycled business is very attractive.”

Upcycle Growth Statistics:

• An estimated 40% of food grown annually in the US is unsold or uneaten, with approximately 80 million tons of food wasted annually at a financial loss of $310 billion. (Source: ReFED)
• Global food waste topped $1 trillion last year. (Source: United Nations Food Waste Index Report)
• Globally, new food and beverage launches with an upcycling claim…showed a compound average annual growth rate of 77% from 2019 to 2023. (Source: Innova Market Insights)
• Upcycled food growth in the US is accelerating rapidly; since Upcycled Certified program inception in 2019, 3.4 million tons of food has been upcycled with 1.2 million of that — or 35% — occurring in 2024 alone.
• In 2024, Upcycled Certified snacks grew by 41.6% compared to just 1.4% growth in the overall food and beverage industry over the same period. (Source: SPINS Product Intelligence)
• Decreasing food waste is the number one solution to reducing the amount of land and resources used in food production as well as the greenhouse gases released in the process. (Source: Project Drawdown)
• 62% of consumers are willing to pay more for a product that fights food waste. (Source: Innova Market Insights)
• 70% of consumers had increased intent to buy Upcycle Certified® foods when the seal was on packaging. (Source: Hartman Group)

For more information about Upcycled Certified and/or to help shape the future of the program by participating in the Standard V3 Public Comment Survey, click the following link: https://www.wherefoodcomesfrom.com/upcycled.

ABOUT WHERE FOOD COMES FROM, INC. Where Food Comes From, Inc. is America’s trusted resource for third party verification of food production practices. Through proprietary technology and patented business processes, the Company estimates that it supports more than 17,500 farmers, ranchers, vineyards, wineries, processors, retailers, distributors, trade associations, consumer brands and restaurants with a wide variety of value-added services. Through its IMI Global, Validus Verification Services, SureHarvest, WFCF Organic, and Postelsia divisions, Where Food Comes From services verify food claims, optimize production practices and enable food supply chains with analytics and data driven insights.

CAUTIONARY STATEMENTThis news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Forward-looking statements are inherently uncertain, and actual events could differ materially from the Company’s predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this news release about industry leadership and demand for, and impact and efficacy of, the Company’s products and services on the marketplace; expectations for growth and expansion of the Upcycled Certified program; ability to generate bundling opportunities; and expectations for continued consumer interest in upcycled products are forward-looking statements that are subject to a variety of factors, including availability of capital, personnel and other resources; competition; governmental regulation of the agricultural industry; the market for beef and other commodities; and other factors. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update forward-looking statements to reflect new information or developments. For a more extensive discussion of the Company’s business, please refer to the Company’s SEC filings at www.sec.gov.

Company Contact:

Vinodthan NayagarExecutive Vice President of Growth StrategyWhere Food Comes From, Inc.vnayagar@wherefoodcomesfrom.com303-895-3002

Investor Contact:

Jay PfeifferInvestor Relationsjpfeiffer@wherefoodcomesfrom.comDirect: 303-880-9000