Manna Tree Partners has taken a “controlling interest” in organic beef supplier Verde Farms, building on a minority $15m stake in 2020.
The Colorado-based private-equity investor has chosen not to reveal the financial terms this time around. Dana Ehrlich, who founded Verde Farms in 2005 but stepped aside as CEO earlier this year, remains a shareholder.
Brad Johnson is now heading up the business, which supplies organic steaks, burgers and mince, as CEO. He joined Massachusetts-based Verde Farms as president in 2023 and has been credited with increasing profitability.
“With Manna Tree's strategic support, we're well-positioned to scale our operations, innovate our product offerings, and expand our market reach,” Johnson said.
“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.”
Verde's beef comes free-roaming cattle that are not exposed to antibiotics or added hormones, what it says is “better-for-you beef” farmed via regenerative practises.
The company claims to have boosted distribution points by 83%, along with a 51% increase in year-on-year dollar sales.
Its own brand of products are marketed in US retailers such as Target, Albertsons and Harris Teeter. Verde Farms also co-produces products for “other leading brands” and bricks and mortar stores.
Johnson said he is seeking to further increase distribution and store count. Ehrlich will still be involved with the company but will step away from day-to-day operations.
A spokesperson for Verde Farms told Just Food the company sources beef from family-owned farms in North America and Australia but did not provide finer detail on the financial performance.
Steve Young, a managing partner at Manna Tree and a Verde Farms board member, said: “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.”
Meanwhile, Manna Tree’s Young spoke with Just Food earlier this year to outline the investor’s strategy. The private-equity firm typically targets minority interests in companies with at least $50m in revenue.
A selection of current investments include indoor-farming business Gotham Greens, cottage cheese producer Good Culture, plant-based dressings maker Urban Remedy and Health-Ade in kombucha.
