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 the afternoon, 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, with Garner taking on the role of 'Farmer Jen' and Foraker as CEO. This strategic move has positioned the company for success in a market that's increasingly conscious of ultra-processed foods, especially for children.
The company's mission statement reflects its commitment to 'driving systemic change in childhood nutrition'. This aligns with the growing trend of consumers pushing back against ultra-processed foods, a shift that has significantly impacted the 'Big Food' industry. In 2024, Once Upon a Farm recorded net sales of $156.8 million, a 66% increase from the previous year, despite widening losses from $17.6 million to $23.8 million.
Foraker highlights the positive impact of this shift, 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 are now allocating prime shelf space to organic foods, a stark contrast to Foraker's early days at Annie's, where products were often relegated to the less desirable 'organic' corner in grocery stores.
The company's decision to go public rather than seek a sale is a testament to its commitment to its mission. Foraker explains, 'We chose to go public to drive systemic change in childhood nutrition, a goal that many consumer goods businesses don't stick to after acquisitions.' This commitment is further emphasized by the company's designation as a public benefit corporation.
Once Upon a Farm's public debut was initially planned for last year, but the longest-ever government shutdown disrupted these plans. The company plans to utilize the IPO proceeds to pay down debt, purchase new equipment, and fund general corporate purposes. This strategic allocation of funds is crucial for the company's growth and sustainability.
The current market conditions are favorable for more IPOs, with interest rate cuts and a large backlog of companies that have been hesitant due to market volatility and recession fears. This week alone saw seven companies go public through IPOs, raising at least $150 million, including Bob's Discount Furniture. The trend suggests a promising year for startups looking to capitalize on the current market conditions.
