July 13, 2020

By Lynda Kiernan, Global AgInvesting Media

Vital Farms, the largest U.S. producer of ethically and pasture raised eggs and other products including butter, hard-boiled eggs, liquid whole eggs, butter, and ghee, announced it has filed a registration statement form S-1 with the U.S. Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO).  The application notes the company’s intention to list on the NASDAQ under the symbol VITL. 

Founded on a single farm in Austin, Texas, in 2007 with 20 hens, Vital Farms’ core mission is to create and coordinate a network of family farms that operate within a well-defined structure of agricultural practices centered on the ethical treatment of animals.

Today, the company is the largest national brand of pasture-raised eggs and butter, partnering with hundreds of family egg farmers. At each operation, each pasture-raised hen has 108 square feet of outdoor land on which to forage. In addition, hens are fed a Non-GMO Project Verified and antibiotic-free feed formulated for their specific needs. Collectively the hens fertilize the pasture themselves, and with regular rotation keeping the pasture in fresh grass, there is never a need for pesticides, herbicides, or agri-chemicals.

“Our purpose is rooted in a commitment to Conscious Capitalism, which prioritizes the long-term benefits of each of our stakeholders (farmers and suppliers, customers and consumers, communities and the environment, crew members and stockholders),” the company stated in its SEC filing. 

“Our business decisions consider the impact on all of our stakeholders, in contrast with the factory farming model, which principally emphasizes cost reduction at the expense of animals, farmers, consumers, employees, communities and the environment.”

In 2015 the company introduced pasture-raised butter, and in 2018 it added hard-boiled eggs. That same year, the company’s sales grew by 58 percent year-over-year. Last year, Vital Farms added ghee to its product line-up, which is available in more than 13,000 stores nationwide, posting sales of $140.7 million (up from $1.9 million in 2010), with eggs accounting for $128.6 million, or 91 percent of its 2019 net revenue.

Last year also saw the company become the first investment for Vail, Colorado-based asset manager Manna Tree Partners.

Manna was formed by Gabrielle Rubenstein, the daughter of David Rubenstein, a co-founder of Carlyle Group. After graduating from Harvard in 2010, Gabrielle studied agricultural economics and agribusiness management through a program at Purdue and Indiana Universities, and as a person with food allergies, launched Manna Tree Partners in 2018 to invest in companies with a focus on healthy food production.

“We have seen the proliferation of companies that are consumer-facing, though not all that many that own or verify their supply chain. We are heavily focused on investing in the “health” of the food supply chain – from farm to fork,” Gabrielle Rubenstein told GAI News in an interview in May of this year. 

Together with CIO Ross Iverson, and COO Brent Drever, the team sources deals through a deep network of partners, and leverages their combined experience and operational background to build a portfolio of companies that balance the need for healthy food and a transparent supply chain with growing valuable enterprises.

“Vital Farms is the perfect company to partner with for our first investment,” Rubenstein said last year. “We are philosophically aligned with the management team, they have a demonstrated track record of success, and they are committed to responsible growth. Manna is excited to support Vital Farms as they introduce more people to healthy food that is delicious and ethically-sourced.”

With an IPO behind them, Vital Farms stated that they are well-positioned to increase their household penetration from its current 2 percent for its pasture-raised shell eggs through the use of digitally integrated media campaigns and other social media channels. Intentions are also to grow volume with existing retail customers, to gain greater shelf space, and to extend its product offerings through innovation. In the longer term, the company also sees opportunities in additional distribution channels including foodservice, drugstores, club military, convenience, and international markets.

“We believe consumers are increasingly focused on the source of their food and are willing to pay a premium for brands that deliver transparency, sustainability and integrity,” said the company in its SEC filing. “As a company focused on driving the success of our stakeholders, our brand resonates with consumers who seek to align themselves with companies that share their values.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.