(OFRM) begins trading on the New York Stock Exchange

Once upon a time on a farm It made its public market debut on Friday, trading on the New York Stock Exchange under the symbol “OFRM.”

The stock opened at $21 per share, up 16% from its initial public offering price. Shares rose 20% in afternoon trading.

The organic baby nutrition company priced its initial public offering at $18 a share on Thursday, in the middle of an expected range of $17 to $19. Once Upon a Farm and Backers It sold about 11 million shares, raising $197.9 million and valuing the company at $724 million.

Founded in 2015 by Cassandra Curtis and Ari Raz, the Berkeley-based company sells a line of refrigerated and cold-processed organic baby foods and snacks for babies. In 2017, actress Jennifer Garner and former Annie’s Homegrown CEO John Foracre joined the company as co-founders. Garner sits on the company’s board and holds the official title of “Farmer Jane,” while Foraker, whom she calls the “grand bob of organics,” is CEO.

“We want to feed little kids all the way to big kids, helping make parents’ lives easier,” Garner told CNBC.

Once Upon a Farm’s debut on the market comes at a time when shoppers and policymakers alike have pushed back on ultra-processed foods, especially when consumed by children. For example, the “Make America Healthy Again” movement, led by Health and Human Services Secretary Robert Kennedy Jr., has found evangelists among so-called “MAHA moms,” who agree with his views on everything from fast food to childhood vaccines.

This shift in behavior has hurt big food companies, while fueling the growth of rebellious brands like Once Upon a Farm. In 2024, the company posted net sales of $156.8 million, up 66% from the previous year, though its losses widened from $17.6 million to $23.8 million, according to a regulatory filing.

“With these tailwinds and consumer trends in place, we’re really trying to capitalize on that and offer more to consumers,” Foraker said.

Retailers have taken notice of the shift and are devoting main shelf space to organic foods, a far cry from Fouracre’s early days at Annie’s, when its products were tucked into the unwanted “organic” corner of grocery stores, he said.

Officially designated as a public benefit corporation, Once Upon a Farm aims to “drive systemic change in child nutrition,” according to its mission statement. Foraker said his commitment to that goal is why he chose to go public rather than seek a sale, a more common ambition for consumer goods startups.

While Foraker said he had good experience with… General Mills After it bought Annie’s in 2014, he noted that throughout the food and beverage industry, many companies don’t live up to the promises they make to the brands they buy and honor their mission. (Look no further than the years-long feud between Ben & Jerry’s and its former owner Unilever and current parent company Magnum Ice Cream Company, which spun off owner Dove last year.)

Once Upon a Farm was planning to go public last year, before the longest government shutdown ever derailed those plans. Once Upon a Farm plans to spend proceeds from the IPO to pay down its debt, purchase new equipment and fund general corporate purposes, according to a regulatory filing.

Overall, more initial public offerings are expected this year, thanks to interest rate cuts and heavy accumulation by companies spooked by market volatility and recession fears. This week alone saw seven companies go public through IPOs raising at least $150 million, including Bob’s Discount Furniture, according to Renaissance Capital data.