Global private equity firm Manna Tree has taken a controlling interest in organic, grass-fed, pasture-raised beef brand Verde Farms. This strategic investment aims to accelerate Verde’s growth in the rapidly expanding better-for-you 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, said, “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 better-for-you 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 better-for-you beef market is 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 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 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.

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 better-for-you food landscape.

Financial terms of the transaction were not disclosed.

Sources: Manna Tree; Verde Farms