December 23, 2015

Austin-based organic egg producer, Vital Farms Inc., has raised $8 million from two unidentified private equity firms. Although unidentified, Vital Farms CEO, Matthew O’Hayer told the Austin Business Journal that the investors were “focused on sustainable agriculture, alternative energy and alike.”

Founded in 2007, Vital Farms has grown from a single operation in Austin to include over 90 contracted family farms across Texas, Arkansas, Oklahoma, Georgia, California, and Missouri. In this operation, chickens live outdoors where each hen is given 100 square feet of space with access to a hen house, and are fed pasture grass.

The company, which is the largest supplier of pasture-raised eggs to Whole Foods plans to use the funds to expand their operations in the Midwest with the construction of a $11.5 million, 65,000 square foot egg washing and packing facility in Missouri, according Mr. O’Hayer reports the Austin American Statesman.

This round of fundraising follows rounds in 2014, which raised $4.5 million from unidentified investors to fund the expansion of the company’s farmer network, and in 2013, which raised $2.3 million that was Vital Farms used to extend its reach within grocery stores and the food services industry.

Organic eggs account for a very minor percentage of the overall egg market in the U.S., accounting for about 3% of the 80 billion eggs produced each year. However, even this percentage represents significant growth from the 0.7% of the market in 2005, and given consumer trends leaning toward more natural and organic foods, industry analysts foresee this growth continuing.

Today, Whole Foods sells Vital Farms’ eggs (which can retail for $7.99 per dozen) at its store nationwide, but the company’s customers also have grown to include more conventional retailers including Target, Safeway, Kroger, Central Market, and H-E-B.

“When we started expanding beyond natural food operations, the question was could we succeed in the broader market,” O’Hayer said to the Austin American Statesman. “The answer is yes. We’re doing very well with conventional retailers.”