Jennifer Garner's Once Upon a Farm Soars 20% in Public Market Debut
The organic children's nutrition company, Once Upon a Farm, made its highly anticipated public market debut on Friday, trading on the New York Stock Exchange under the ticker symbol 'OFRM'. The stock opened at a promising $21 per share, already surpassing its initial public offering price by 16%. By afternoon trading, shares had surged an impressive 20%.
Founded in 2015 by Cassandra Curtis and Ari Raz, the Berkeley-based company offers a range of organic cold-processed, refrigerated baby foods and kid snacks. In 2017, actress Jennifer Garner and former Annie's Homegrown CEO John Foraker joined as co-founders. Garner, known as 'Farmer Jen', sits on the board, while Foraker, the 'Grand Poobah of organic', serves as CEO. Their mission is to make healthy eating easier for parents.
The company's public offering priced its shares at $18 each, within the expected range of $17 to $19. This offering saw Once Upon a Farm and its backers sell approximately 11 million shares, raising a substantial $197.9 million and valuing the company at $724 million. This valuation reflects the company's strong market position and potential for growth.
The timing of this debut is significant. It comes amidst a growing consumer preference for ultra-processed foods, particularly among children. The 'Make America Healthy Again' movement, led by Health and Human Services Secretary Robert Kennedy Jr., has gained support from 'MAHA moms' who advocate for healthier food choices and childhood vaccinations. This shift in consumer behavior has positively impacted brands like Once Upon a Farm, which offers healthier alternatives.
Despite the company's success, it has faced challenges. In 2024, Once Upon a Farm recorded net sales of $156.8 million, a 66% increase from the previous year. However, its losses widened to $23.8 million from $17.6 million. The company attributes this to the initial stages of its growth and the investment required to expand its offerings.
Foraker highlights the changing retail landscape, where organic foods are now given prime shelf space, a stark contrast to Foraker's early days at Annie's, when organic products were often relegated to less desirable locations. This shift in retail strategy has contributed to the company's success.
Once Upon a Farm's commitment to driving systemic change in childhood nutrition is a key differentiator. Foraker emphasizes that the company's decision to go public rather than seek a sale stems from its dedication to this mission. The company aims to honor its promises and maintain its integrity, as seen in its relationship with General Mills after the acquisition of Annie's in 2014.
The company had initially planned to go public last year but faced delays due to the longest-ever government shutdown. Once Upon a Farm plans to utilize the proceeds from its IPO to pay down debt, purchase new equipment, and fund general corporate purposes. This strategic allocation of funds will support the company's growth and expansion.
The current market conditions are favorable for initial public offerings (IPOs). Interest rate cuts and a large backlog of companies, previously deterred by market volatility and recession fears, are now embracing the opportunity. This week alone witnessed seven companies going public through IPOs, raising a minimum of $150 million, including Bob's Discount Furniture. The trend suggests a promising outlook for startups seeking funding and investors looking for potential returns.
