Pasture-raised egg producer Vital Farms files for IPO
22 Jul 2020Pasture-raised egg company Vital Farms filed with the U.S. Securities and Exchange Commission (SEC) to raise up to $100 million in an initial public offering. The company plans to use the symbol VITL on the NASDAQ New York stock exchange.
In its filing, the company said that it is confident there will be continued demand for ethical, transparent and sustainable brands in order to sustain its growth. "We have expanded into the mainstream channel while still continuing to command premium prices for our ethically produced products, which sell for as much as three times the price of commodity eggs," the company said. Last year, the Vital Farms posted sales of $140.7 million with a net income of $3.3 million.
Citing sales data in its S-1 filing with the SEC, the company said that its retail dollar sales in-store have grown at a 31.7% compound annual growth rate between 2017 and 2019, and the Austin, Texas-based company now holds 76% of the pasture-retail egg category in dollar terms. During the same time period, net revenue grew by 90%. Although Vital Farms holds a mighty share of the market, the overall penetration of pasture-raised eggs within the total shell egg market is still small. The company said that household penetration for pasture-raised shell eggs is only 2% compared to the entire shell egg category penetration of 93%. That small presence in American households leaves plenty of room for growth. The U.S. pasture-raised retail egg market in 2019 accounted for approximately $177.0 million in retail sales, the specialty egg market, where Vital would compete, is worth $1 billion.
While eggs are certainly the large money maker for the Austin, Texas company – its humanely-raised eggs accounted for 91% of its revenue last year – the 13-year old company is also venturing into other categories, including butter and ghee. The U.S. butter market in 2019 accounted for approximately $3.3 billion in retail sales, according to SPINS data cited by the company.
The company sells its products in more than 13,000 stores across the United States and cited the international market as a potential expansion strategy in its prospectus. However, should Vital Farms jump the pond, it will come up against other specialty companies like Cal-Maine and Kerrygold that the company cited as major competitors in the space.
Related news
Plastic packaging reduction requires industry rethink
6 Jan 2023
The food and beverage sector is calling for industry-wide collaboration and business model updates to reduce the environmental impact of plastic packaging.
Read more‘Super nut’? Indonesia’s ‘best kept secret’ wins EU novel food approval
6 Dec 2022
A previously obscure, nutrient-rich Indonesian nut is set to hit European shelves after winning EU novel foods approval that could also help protect under-threat kenari forests on the archipelago.
Read moreEU lowers maximum levels for dioxins and dioxin-like PCBs in food
21 Nov 2022
The European Commission (EC) has moved to lower maximum levels for dioxins and dioxin-like polychlorinated biphenyls (PCBs) found in foodstuffs produced in or imported into the EU.
Read moreFDA in ‘critical milestone’ for cell-cultured meat in US
18 Nov 2022
The US Food and Drug Administration (FDA) has completed its first pre-market consultation of a cell-cultured chicken product made by UPSIDE Foods, a development that has been hailed a “critical and inspiring milestone in the history of cultivated meat”...
Read moreFood warning labels are inconsistent in discouraging unhealthy foods
25 Oct 2022
A front-of-pack nutrition warning label is more of a deterrent on breakfast cereals than indulgent products, such as chocolate and cookies, according to findings from a recent Chilean study.
Read moreUK baby food brand unveils recyclable pouch in sector sustainability drive
16 Sep 2022
Baby food maker Little Freddie has launched a fully recyclable baby food pouch and is calling for other baby food manufacturers to follow by adopting more sustainable forms of packaging.
Read moreHow investing in sustainability drives value for brands
15 Sep 2022
Consumers are increasingly conscious of the environmental, social and corporate governance (ESG) credentials of companies and products they invest in. How can certifications such as B Corp drive value for food and beverage manufacturers?
Read morePFAS breakdown process sheds light on “forever chemical” use in food industry
9 Sep 2022
PFAS, or per and polyfluoroalkyl substances, are once again in the spotlight after new research details a method for decomposing these “forever chemicals” that have been detected in certain foods.
Read moreNutriScore algorithm update a ‘step in right direction’
7 Sep 2022
Campaigning organisation Foodwatch International is hailing the update to the NutriScore algorithm as a “step in the right direction” but says there is still space for further improvement.
Read moreVoluntary actions by industry ‘ineffective’ for public health, warns ‘realist review’
19 Aug 2022
Reliance on voluntary actions to control the composition and marketing of unhealthy foods and drinks by industry is not effective and results in weaker regulations in low- and middle- income countries, warn researchers.
Read more