Barrett Food Co. has reduced the amount of its $7.5 million sale price to $5.25 per ounce from $7,500.
The change comes after years of struggling to make inroads into the grocery industry, which has become a key driver of sales growth.
The company’s net income was down to $14.9 million, from $18.1 million in the previous quarter.
The new price will cost the company about $5,000 in additional expenses.
Barrett said in a statement that the new price is a reflection of the continued difficulty of the grocery business, which continues to experience challenges with inflation.
It also reflects the benefits of an acquisition by a new grocery operator that will reduce our costs, as well as the positive impact of our new and improved brands and pricing structure.
The company will also trim its total revenue to $7 million from $8 million in 2016.
The savings come after Barrett reported a $6.5 billion loss in its last year of operation.
Barret has faced challenges since launching its own chain of grocery stores in 2005.
The chain was acquired by the Kroger Group in 2009.
“While we are pleased to have reached a better deal, this is not a quick turnaround,” said Jeff Witte, Barrett president and chief executive officer.
“We remain focused on providing value to our customers, and we continue to be focused on continuing to develop our brands, products, and the benefits they provide to the consumer.”
Barrett’s shares fell 2% to $3.99 per share in extended trading on Monday.