October 22, 2020

By Lynda Kiernan, Global AgInvesting Media

Verde Farms, a leading provider of 100 percent grass-fed, organic, and pasture-raised beef, has secured new funding from minority investors Johnsonville Holdings and NHL player Alex Biega to bring total funding to-date to $25 million. 

The company also announced the addition of Nick Meriggioli, CEO of Johnsonville, to its board of directors. Meriggioli joins existing board members Verde Farms founder and CEO Dana Ehrlich, Verde Farms co-founder Pablo Garbarino, and Manna Tree Partners co-founder and COO Brent Drever.

“I admire Verde’s passion for producing great-tasting, healthy and sustainable meats,” said Meriggioli. “I look forward to partnering with Dana, Pablo and Brent, sharing my experience to support the acceleration of Verde’s brand and product portfolio growth.”

Meriggioli has been CEO of Johnsonville, the number one sausage brand in the U.S., since 2015. Before Johnsonville he spent 20 years with Kraft Foods in executive and senior marketing roles. During this time he led Kraft’s Oscar Mayer business unit which includes the popular brands: Lunchables, Claussen Pickles, and Boca Meat Alternatives, and oversaw the launch of Oscar Mayer Selects, a better-for-you portfolio highlighting no artificial preservatives. 

“In addition to Nick’s CPG expertise and career successes, he was known to foster a people-first culture in his leadership roles, a focus that aligns well with our brand approach,” said  Ehrlich. “Exceptional customer service and consumer experience have been a priority for the Verde team since day one, and our partner relationships are a testament to that.”

Founded in 2005, Verde Farms prioritizes animal welfare, sustainability, and the production of high-quality beef without feedlots or the use of growth hormones, while focusing on traceability in its supply chain, and potential benefits to society and the environment. Through its vertically integrated business model, Verde Farms’s top four points of beef origination are Uruguay, North America, Australia, and New Zealand; and its top products are steaks, grinds and patties, roasts and stews, hot dogs, and sausages.

In February of this year Manna Tree Partners laid the foundation for this Series A when it announced it had invested $15 million in exchange for a minority stake in the company.

“Consumers today are more keenly attuned to the impacts of their purchase decisions from a health and sustainability standpoint,” said Brent Drever COO, Manna Tree Partners at the time.

“We believe Verde is well-positioned to become the brand of choice for these consumers based on their sustainability and animal welfare standards, superior-quality products, traceable supply chain, and a proven, sustainable business model.”

The overall global beef market is expected to reach a value of $383 billion by 2025, according to data from Grand View Research. Furthermore, between 2013 and 2018, the market for sustainably-produced food products grew by 24 percent, and is expected to reach $141 billion by 2023, according to Nielsen.  

And while the conventional beef market posts growth generally in the low single digits, organic, grass-fed beef sales have been seeing repeated years of double-digit growth, and grew by 14.8 percent in 2019. 

As the leading provider of 100 percent grass-fed and 100 percent pasture-raised, organic beef for both retail and food service customers in the U.S., Verde Farms has experienced a notable year of growth. Aside from completing its Series A, bringing total funding to-date to $25 million, the company has increased sales YOY by 31 percent, has added new distribution partners throughout Q2 and Q3 including Costco, Sam’s Club, Albertsons, and Ahold; has enhanced its processing abilities at its Mullica Hill site to include a second production line; and has introduced its new Simply! Sous Vide product line.

Aside from aligning with Verde Farms’ mission, this investment in the company also gives Manna Tree, and now Johnsonville and Alex Biega, exposure to a healthy food category that still has a lot of room for growth, and a company with its eye on international opportunities.

“The grass-fed organic beef market remains under-penetrated with significant opportunity to expand with a branded product offering and a thoughtful go-to-market strategy,” noted Brent Drever, COO of Manna Tree, in February. “Dana Ehrlich and his team are tapping into that incredible growth opportunity.”

As Verde Farms continues to capitalize upon this opportunity, the company stated that a fifth at-large board member will be announced at a later date.
– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.