Vital Farms on Track to Deliver Strong Growth in 2025 with Key Investments in Resilient Supply Chain and Farm Network Expansion

Rhea-AI Summary

Vital Farms (VITL) announces key investments to support growth in 2025, focusing on supply chain expansion. The company plans to install new MOBA egg grading equipment at Egg Central Station (ECS) in Springfield, Missouri, expected to increase capacity by 30%. Installation will begin in Q1 2025 and be fully operational by Q4 2025.

The company has significantly expanded its farm network to 425 family farms, up from 300 in 2023, representing a 40% increase in egg sourcing capacity. Additionally, Vital Farms is proceeding with plans for a second egg facility in Seymour, Indiana, set to break ground in mid-2025, with potential to generate over $350 million in additional revenue when fully operational in early 2027.

The company has also strengthened its leadership team by appointing Mike O'Brien as Director of Plant Operations at ECS.

Positive

• 30% capacity increase expected at ECS facility by Q4 2025
• Farm network expanded by 40%, growing from 300 to 425 family farms
• New Indiana facility expected to add $350 million in revenue capacity by 2027

Negative

• None.

AUSTIN, Texas, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a range of ethically produced foods nationwide, today announced that it is well-positioned to continue delivering strong growth with critical investments in the company’s robust and resilient supply chain. The company will soon begin the installation of new production equipment at Egg Central Station (ECS), Vital Farms’ award-winning egg washing and packing facility in Springfield, Missouri. Additionally, the company has passed another major milestone within its farm network, now eclipsing 425 family farms versus 300 at the end of 2023.

Vital Farms is the leading U.S. brand in the fast-growing pasture-raised eggs market by retail dollar sales. To meet the increasing demand for Vital Farms shell eggs, the company will be installing an additional best-in-class MOBA egg grading system, the primary automation technology used in washing, sorting, and packing shell eggs. Once construction is complete, ECS will see a capacity increase of an estimated 30%. Installation of the new MOBA system is expected to begin in Q1 2025 and to be fully operational by Q4 2025.

Vital Farms continues to meet farm recruitment goals, and the company passed a significant milestone within its network in 2024, surpassing 425 family farms. The company added more than 125 new family farms last year, expanding egg sourcing capacity by more than 40%.

“With the continued strong demand for our eggs, these investments in our robust and resilient supply chain are critical to our mission of bringing ethical food to the table,” said Russell Diez-Canseco, Vital Farms’ President and CEO. “We have positive momentum going into 2025 to deliver another year of strong growth. Our consistent focus on our farm network and ECS operations positions us well to continue meeting the strong consumer demand for our products and help ensure more consumers can find Vital Farms eggs and butter on the shelves at their local grocery stores.”

Last year, Vital Farms announced plans for a second world-class egg washing and packing facility in Seymour, Indiana. This new facility, which the company anticipates will break ground in mid-2025, is designed to generate more than $350 million in additional revenue capacity for the brand once fully operational in early 2027.

Finally, Vital Farms has expanded its leadership team in Springfield with manufacturing industry veteran Mike O’Brien, who has joined as Director of Plant Operations. A native Missourian, O’Brien joins Vital Farms from Herman Miller, where he led operations and manufacturing transformation. In his new role, O’Brien will oversee day-to-day production and supply chain operations at Egg Central Station.

ABOUT VITAL FARMS
Vital Farms (Nasdaq: VITL) is a Certified B Corporation that offers a range of ethically produced foods nationwide. Started on a single farm in Austin, Texas in 2007, Vital Farms is now a national consumer brand that works with over 425 family farms and is the leading U.S. brand of pasture-raised eggs by retail dollar sales. Vital Farms’ ethics are exemplified by its focus on the humane treatment of farm animals and sustainable farming practices. In addition, as a Delaware public benefit corporation, Vital Farms prioritizes the long-term benefits of each of its stakeholders, including farmers and suppliers, customers and consumers, communities and the environment, and crew members and stockholders. Vital Farms’ products, including shell eggs, butter, hard-boiled eggs, and liquid whole eggs, are sold in approximately 24,000 stores nationwide. Vital Farms pasture-raised eggs can also be found on menus at hundreds of foodservice operators across the country. For more information, visit https://vitalfarms.com/.

Forward-Looking Statements

This press release contains “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Vital Farms’ production capacity, anticipated growth, specifications and timing regarding addition of equipment at Vital Farms’ egg washing and packing facility in Springfield, Missouri and the development of Vital Farms’ potential planned egg washing and packing facility in Seymour, Indiana, the effect of such projects on Vital Farms’ future revenue and financial performance, ability to fulfill consumer demand, and management’s long-term outlook. These forward-looking statements are based on Vital Farms’ current assumptions, expectations, and beliefs and are subject to substantial risks, uncertainties, assumptions, and changes in circumstances that may cause Vital Farms’ actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement.

These risks and uncertainties are more fully described in Vital Farms’ filings with the Securities and Exchange Commission (SEC), including in the section entitled “Risk Factors” in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 29, 2024, which Vital Farms filed on November 7, 2024, and other filings and reports that Vital Farms may file from time to time with the SEC. Moreover, Vital Farms operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for management to predict all risks, nor can Vital Farms assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Vital Farms may make. In light of these risks, uncertainties, and assumptions, Vital Farms cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Vital Farms disclaims any obligation to update forward-looking statements except as required by law.

Media:
Rob Discher
Rob.Discher@vitalfarms.com

Investors:
Anthony Bucalo
Anthony.Bucalo@vitalfarms.com

FAQ

What is the expected capacity increase from VITL's new MOBA system installation?

The new MOBA egg grading system installation at Egg Central Station is expected to increase capacity by 30% when fully operational by Q4 2025.

How many new farms did Vital Farms (VITL) add to its network in 2024?

Vital Farms added more than 125 new family farms in 2024, growing from 300 to 425 farms, expanding egg sourcing capacity by over 40%.

When will VITL's new Seymour, Indiana facility begin operations?

The new Seymour, Indiana facility is expected to break ground in mid-2025 and become fully operational in early 2027.

How much additional revenue capacity will VITL's new Indiana facility generate?

The new facility in Seymour, Indiana is designed to generate more than $350 million in additional revenue capacity once fully operational.