Verde Farms, a US-based organic meat business, has secured investment from private-equity firm Manna Tree Partners to expand its channel distribution and geographical reach.
Manna Tree Partners, which invests in companies producing “healthy food”, said it has taken a “minority” interest in Verde Farms valued at US$15m. It has previously invested in pasture-raised eggs business Vital Farms, plant-based ingredients tech firm Nutriati, and MycoTechnology, which produces proteins from mushrooms.
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Located in Woburn, Massachusetts, Verde Farms supplies 100% grass-fed and pasture-raised organic beef products such as steaks, hot dogs, sausages and mince to retail and foodservice customers, including Wal-Mart, Wegmans and Amazon, amongst others. It is also developing ready-to-eat meals.
Verde Farms’ chief executive Dana Ehrlich the business, founded in 2005, is seeking to expand in the US initially, and then internationally in the “long term”. A spokesperson confirmed the company only currently supplies the US.
He added: “Manna Tree Partners shares our mission-driven commitment to providing consumers with beef that is better for people, better for the animal, and better for the planet and to craft products using only great-tasting, authentic ingredients like those you can find in your own cupboard at home.
“This partnership will better enable us to meet rising global demand for 100% grass-fed, 100% pasture-raised beef. In 2020, we are excited to introduce innovative, ready-to-eat mealtime options unlike anything on the market.”
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By GlobalDataThe company said it has increased revenue by more than 35% since 2016 by “accelerating growth of branded, value-added products”.
Brent Drever, the chief operating officer at Manna Tree, said the “grass-fed organic beef market remains under-penetrated with significant opportunity to expand with a branded product offering and a thoughtful go-to-market strategy”.
He continued: “Consumers today are more keenly attuned to the impacts of their purchase decisions from a health and sustainability standpoint. We believe Verde is well-positioned to become the brand of choice for these consumers based on their sustainability and animal-welfare standards, superior-quality products, traceable supply chain, and a proven, sustainable business model.”
