Strategic Investment Positions Verde Farms for Expansion in $33B US Beef Market Amid Surging Demand for Healthier, Sustainable Protein Options
BOULDER, Colo. and BOSTON, July 23, 2024 /PRNewswire/ -- Manna Tree, a global private equity firm dedicated to improving human health, today announced it has taken a controlling interest in Verde Farms, a pioneer and leading brand of organic, 100% grass-fed, 100% pasture-raised beef for almost two decades. This strategic investment aims to accelerate Verde's growth in the rapidly expanding better-for-you (BFY) beef category, which is currently outpacing conventional beef by nearly three times. Manna Tree first invested in Verde Farms in January 2020.
"At Manna Tree, we believe that by investing in the next generation of health and wellness focused companies, we will empower consumers to live better, longer lives, and Verde perfectly delivers that vision," said Steve Young, Managing Partner at Manna Tree and Verde Farms Board Member. "Through its organic, grass-fed, regeneratively-farmed beef, Verde offers consumers a more nutrient-dense protein option, and we believe the company is well positioned to serve the growing demand for cleaner, more sustainable food choices by today's consumer. We are strong believers in the opportunity for Verde and look forward to working closely with its highly experienced management team to scale the company in a meaningful way."
Gabrielle Rubenstein, Co-Founder and Managing Partner of Manna Tree, added, "Since our initial investment into Verde Farms, we have been continually inspired and impressed by its commitment to sustainability and more environmentally conscious protein options. We have worked very closely with the company to further strengthen its team and go-to-market strategy, and we're excited to leverage our expertise and network to help Verde expand its reach and impact in the better-for-you food space."
The transaction comes as the BFY beef segment experiences significant growth, with recent Nielsen data showing a 14% year-over-year increase. Organic beef, in particular, is growing at over 22% annually, underscoring the market opportunity for Verde's products. The BFY beef market is currently valued at $4.4 billion, with a 15% growth rate over the last five years.
"Our commitment to providing the purest form of beef aligns perfectly with consumer demand for healthier, more sustainable protein options. With Manna Tree's strategic support, we're well-positioned to scale our operations, innovate our product offerings, and expand our market reach," said Brad Johnson, CEO of Verde Farms. "I'm particularly excited about building on our recent successes, including our strong velocities and significant increases in store count and distribution points. As we move forward, we'll continue to prioritize our mission of delivering high-quality, ethically sourced beef while driving positive change in the food industry. We will also focus on delivering innovation to the consumer, through new products that make it even more convenient to add delicious, healthy protein to their menus."
Since 2005, Verde has been delivering premium beef sourced from cattle that freely graze in pastures throughout the year—never exposed to antibiotics or added hormones. In 2023, Verde underscored its dedication to environmental stewardship by achieving Land to Market's regenerative agriculture verification.
Verde's vertically integrated model that includes proprietary relationships with key suppliers globally, combined with Verde's commitment to regenerative agriculture practices, positions the company as a leader in sustainable protein production. The company has seen an 83% increase in overall distribution points since 2022, a 51% increase in dollar sales year-over-year, and has had velocities at the top of the category since the launch of its first consumer-facing campaign "Beef From A Better Place" in 2023. Verde has a number of routes to market, through both its own Verde brand (available at retailers such as Amazon Fresh, Target, Harris Teeter, and Albertsons banners), as well as via strategic co-manufacturing partnerships with other leading brands and retailers.
Dana Ehrlich, who founded Verde Farms in 2005, will transition away from day-to-day operations but remains a shareholder and is confident in Verde's next phase of growth. Johnson and the rest of the Verde Leadership Team are committed to realizing Ehrlich's vision for the company and uphold his steadfast legacy of innovation and sustainability.
The firm believes its hands-on approach and commitment to ESG principles will be instrumental in driving Verde's success in the competitive and rapidly evolving BFY food landscape.
Financial terms of the transaction were not disclosed.
About Manna Tree
Manna Tree is a global private equity firm committed to improving human health. The firm invests in and actively partners with growth-stage companies, driven by the core belief that health, well-being, and longevity are attainable through innovation in food. Manna Tree has approximately $567 million in assets under management and has made strategic investments in 13 pioneering companies transforming the wellness landscape. Website: www.mannatreepartners.com
About Verde Farms
For almost two decades, Verde Farms has been on a mission to bring consumers Beef from a Better Place. Verde is the leading brand of organic, 100% grass-fed and 100% pasture-raised beef in the US. In 2023, Verde announced its official commitment to regenerative agriculture with the Land to Market verification, making it the only organic beef company to earn this distinction. Verde partners with a global network of family farmers who share the company's passion for high quality and exceptionally-tasting beef raised with respect for animal welfare, where feedlots and growth hormones are never part of the picture. To learn more about Verde, please visit www.www.verdefarms.com or follow them on Instagram, Facebook, or LinkedIn.
CONTACT:
Quinn Kelsey, ICR
[email protected]
Kate Kelly, Verde Farms
[email protected]
SOURCE Manna Tree Partners
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