In a recent development, Manna Tree Partners has acquired a “controlling interest” in organic beef supplier Verde Farms, following a previous investment of a minority stake worth $15 million in 2020. The terms of the deal remain undisclosed, with Dana Ehrlich, the founder of Verde Farms, retaining a shareholding in the company.
Taking over as CEO is Brad Johnson, who joined Verde Farms in 2023 and has been credited with driving profitability. Under his leadership, the company offers a range of organic steaks, burgers, and mince. Johnson expressed confidence in the partnership with Manna Tree, stating that it positions Verde Farms to expand operations, innovate product offerings, and reach new markets.
Verde Farms prides itself on sourcing beef from free-roaming cattle raised without antibiotics or added hormones. The company emphasizes sustainable farming practices to deliver “better-for-you beef” to consumers.
The acquisition has already shown positive results, with Verde Farms reporting an 83% increase in distribution points and a 51% rise in year-on-year dollar sales. The company’s products are available in major US retailers like Target, Albertsons, and Harris Teeter, as well as through partnerships with other leading brands and brick-and-mortar stores.
Looking ahead, Johnson aims to further enhance distribution and expand the presence of Verde Farms products. While Ehrlich will remain involved with the company, he will take a step back from day-to-day operations to support the transition.
According to Steve Young, a managing partner at Manna Tree and a board member of Verde Farms, the company’s focus on organic, grass-fed, regeneratively-farmed beef aligns with the growing demand for cleaner and sustainable food options among consumers. Young expressed confidence in Verde Farms’ potential for growth and committed to supporting the management team in scaling the business.
Manna Tree’s investment strategy, as outlined by Young in a previous interview, targets minority stakes in companies with at least $50 million in revenue. The firm’s current portfolio includes investments in various food and beverage companies such as Gotham Greens, Good Culture, Urban Remedy, and Health-Ade.
This strategic acquisition by Manna Tree Partners underscores the ongoing trend towards clean and sustainable food choices within the food and beverage industry. As Verde Farms continues to expand its presence and offerings, it remains well-positioned to meet the evolving preferences of today’s health-conscious consumers.
