Once Upon a Farm made its public market debut on Friday, trading on the New York Stock Exchange under the ticker “OFRM.” The stock opened at , at $21 per share, a 16% increase from its initial public offering price.
The organic children’s nutrition company priced its IPO at $18 per share on , landing in the middle of its previously stated range of $17 to $19. The offering involved approximately 11 million shares, raising $197.9 million and resulting in a company valuation of $724 million.
Founded in by Cassandra Curtis and Ari Raz, Once Upon a Farm specializes in organic, cold-processed, refrigerated baby foods and snacks for children. Actress Jennifer Garner and former Annie’s Homegrown CEO John Foraker joined the company as co-founders in . Garner currently serves on the company’s board and is known internally as “Farmer Jen,” while Foraker holds the position of CEO.
“We want to feed babies to big kids, as we’re helping make parents’ lives easier,” Garner told CNBC.
The company’s entry into the public market coincides with a growing consumer and policy-level pushback against ultra-processed foods, particularly those marketed to children. The “Make America Healthy Again” movement, led by Health and Human Services Secretary Robert Kennedy Jr., and its base of “MAHA moms,” reflect a broader concern about the nutritional quality of food available to families.
This shift in consumer behavior is proving beneficial for brands like Once Upon a Farm, while posing challenges for established food industry giants. In , Once Upon a Farm recorded net sales of $156.8 million, a 66% increase from the previous year. However, the company’s losses also widened, increasing from $17.6 million to $23.8 million, according to regulatory filings.
“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,” Foraker said.
Retailers are responding to the changing consumer preferences by dedicating increased shelf space to organic food products, a significant improvement from Foraker’s earlier experience at Annie’s, where organic products were often relegated to less prominent locations within grocery stores.
Once Upon a Farm is officially designated as a public benefit corporation, with a stated mission to “drive systemic change in childhood nutrition.” Foraker emphasized that this commitment to its mission was a key factor in the decision to pursue an IPO rather than a sale to a larger company, a more common outcome for emerging consumer goods businesses.
Foraker noted a positive experience with General Mills after the company acquired Annie’s in , but cautioned that many companies in the food and beverage industry do not consistently uphold the promises made to brands they acquire and honor their original missions. He cited the ongoing relationship between Ben & Jerry’s and its former owner Unilever, and its current parent company, Magnum Ice Cream Company, as an example.
Once Upon a Farm had originally planned to go public in , but those plans were disrupted by the longest-ever U.S. Government shutdown, which temporarily halted operations at the Securities and Exchange Commission (SEC).
The company intends to use the proceeds from the IPO to pay down debt, invest in new equipment, and fund general corporate purposes, according to a regulatory filing.
The IPO comes amid a broader expectation of increased public offerings this year, fueled by anticipated interest rate cuts and a reduction in market volatility and recession fears. This week alone saw seven companies launch IPOs that raised at least $150 million, including Bob’s Discount Furniture, according to Renaissance Capital data.
