Manna Tree Takes Controlling Interest in Verde Farms
Manna Tree, a global private-equity firm dedicated to improving human health, has taken a controlling interest in Verde Farms, a brand of organic, 100% grass-fed, 100% pasture-raised beef. This strategic investment aims to accelerate Verde’s growth in the rapidly expanding better-for-you (BFY) beef category, which, according to Manna Tree, is currently outpacing conventional beef by nearly three times. Manna Tree first invested in Verde Farms in January 2020.
For almost two decades, Verde has been delivering premium beef sourced from cattle that freely graze in pastures throughout the year — never exposed to antibiotics or added hormones.
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Verde has seen an 83% increase in overall distribution points since 2022, a 51% increase in dollar sales year over year. The company has several 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 leading brands and retailers. In 2023, the company achieved Land to Market’s regenerative agriculture verification.
“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 Woburn, Mass.-based 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.”
“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," noted Steve Young, managing partner at Manna Tree and a Verde Farms board member. "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.”
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.
“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,” said Gabrielle Rubenstein, co-founder and managing partner of Manna Tree. “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 BFY beef segment experiences significant growth, with recent Nielsen data showing a 14% year-over-year increase. Organic beef, in particular, is growing at more than 22% annually, underscoring the market opportunity for Verde’s products. The BFY beef market is currently valued at $4.4 billion, with a 15% growth rate over the past five years.
Financial terms of the transaction were not disclosed.
Vail, Colo.-based Manna Tree has approximately $567 million in assets under management and has made strategic investments in 13 pioneering companies transforming the wellness landscape.
