Company Profile: Vital Farms

chicken in a green grassy field

In the current massively overvalued stock market environment, it has been far more difficult than usual to find stocks that meet our investment and social criteria. We recently, however, found a new consumer staples stock that seems to offer an eggs-ellent opportunity: Vital Farms.

Vital Farms is a mission-driven B Corp that is building the market for pasture-raised eggs and dairy. The company partners with over 250 small farms to source pasture-raised eggs, and also sells egg bites, hard-boiled eggs, breakfast bars, and pasture-raised butter and ghee. The farms uphold high standards of care for the chickens, including providing 108 square feet of grazing space per hen and daily outside time for each bird. Vital Farms then processes (cleans and packages) the eggs at its Egg Central Station and distributes them to grocers and stores across the country.

The company operates using the stakeholder capital model in which it commits to considering the long-term interests of all its stakeholders (the farmers, livestock, employees, consumers, vendors, the community, the environment, and shareholders) in its decisions. It prioritizes transparency in its operations and enables customers to trace where their eggs came from. You can catch a glimpse of some of Vital Farms’s happy hens here.

In its 2020 Stakeholder Summary, the company reports that it is committed to addressing systemic racism and is working with a consultant to develop a Diversity, Equity, and Inclusion program. It aims to reduce the environmental impact of its packaging, shipping, and ink and has started using carbon neutral lids for its egg cartons. It offers its workers generous benefits and pays at least 25% above the living wage. It also gives money and products to numerous community organizations.

We love the social story of an egg business that is supporting small farms and taking care of its stakeholders, but it’s important to note that the business model is still in its incubation period. Consistent profits have been elusive so far as the company expands its business, but we eggspect eggs-ellent results farther down the lane.

We apologize to hens and humans alike for the puns in this company profile.