In a significant moment for both the organic food industry and celebrity-backed ventures, Jennifer Garner’s Once Upon a Farm made a robust entry into the public market on Friday. Trading on the New York Stock Exchange under the ticker “OFRM,” the organic children’s nutrition company saw its shares surge by 17% on its debut day, signaling strong investor confidence in its mission and market position.
A Stellar Market Entrance
The highly anticipated initial public offering (IPO) saw Once Upon a Farm price its shares at $18 each on Thursday, comfortably within its expected range of $17 to $19. The stock opened at $21 per share, a 16% jump from its IPO price, and maintained momentum throughout the day to close up a remarkable 17%. This successful debut allowed the company and its backers to raise $197.9 million, valuing the enterprise at an impressive $724 million.
More Than Just Baby Food: A Mission-Driven Brand
Founded in 2015 by Cassandra Curtis and Ari Raz in Berkeley, California, Once Upon a Farm specializes in organic, cold-processed, refrigerated baby foods and kid snacks. The company gained significant traction and visibility when actress Jennifer Garner and former Annie’s Homegrown CEO John Foraker joined as co-founders in 2017. Garner, affectionately known as “Farmer Jen,” serves on the company’s board, while Foraker, whom she dubs the “Grand Poobah of organic,” leads as CEO.
“We want to feed babies to big kids, as we’re helping make parents’ lives easier,” Garner shared with CNBC, encapsulating the brand’s dual commitment to nutrition and convenience for modern families.
Tapping into a Growing Health Consciousness
Once Upon a Farm’s public market debut arrives at a pivotal time, as consumers and policymakers increasingly scrutinize ultra-processed foods, particularly those marketed to children. This societal shift, exemplified by movements like “Make America Healthy Again” championed by figures such as Health and Human Services Secretary Robert Kennedy Jr., has created a fertile ground for brands prioritizing clean, organic ingredients.
This growing demand for healthier alternatives has significantly impacted “Big Food” corporations, while simultaneously fueling the growth of agile, insurgent brands like Once Upon a Farm. The company’s 2024 financial filings underscore this trend, reporting net sales of $156.8 million—a substantial 66% increase from the previous year. While losses widened from $17.6 million to $23.8 million, CEO John Foraker remains optimistic, stating, “With these tailwinds and consumer trends being in the right spot, we’re really trying to take advantage of that and deliver more for consumers.”
Retailers have certainly taken notice, now dedicating prime shelf space to organic offerings—a stark contrast to Foraker’s early days at Annie’s, when organic products were often relegated to obscure corners of grocery stores.
A Public Benefit Corporation’s Path to Impact
Distinguishing itself further, Once Upon a Farm is officially designated as a public benefit corporation, a legal structure that mandates it to balance profit with a specific public benefit. Its stated mission is to “drive systemic change in childhood nutrition.” Foraker emphasized that this commitment was a key factor in the decision to pursue an IPO rather than a sale, a more common route for burgeoning consumer goods businesses.
He highlighted concerns that larger corporations often fail to uphold the original mission of acquired brands, citing the well-publicized disputes between Ben & Jerry’s and its former owner Unilever. By going public, Once Upon a Farm aims to retain control over its vision and ensure its long-term dedication to healthier eating for children.
The company plans to allocate the IPO proceeds towards paying down debt, acquiring new equipment, and funding general corporate purposes, as detailed in its regulatory filing.
A Promising Outlook for IPOs
Once Upon a Farm’s successful launch also reflects a broader resurgence in the IPO market. After a period of volatility and recession fears, a backlog of companies is now looking to go public, buoyed by anticipated interest rate cuts. This week alone saw seven companies, including Bob’s Discount Furniture, complete IPOs raising at least $150 million each, according to Renaissance Capital data, signaling a healthier and more active market ahead.
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