Premium children’s food brand Once Upon A Farm officially filed its much anticipated – and delayed – initial public offering yesterday, making it a litmus test for investors’ appetite for CPG brands in an era when food-tech and AI are more often viewed as the golden goose.
Backed with the star-power of actor and co-founder Jennifer Garner as well as respected investment firms CAVU Venture Partners and S2G Ventures among other shareholders, the organic-food company seeks to raise up to $208.9 million by offering 11 million shares at $17 to $19.
Once Upon a Farm, which would trade on The New York Stock Exchange under the ticker OFRM, would use the funds raised to repay loans, buy new equipment, meet payments conditional upon the offering and other “general corporate purposes,” according to the announcement.
Is the IPO price right?
In an SEC filing, the company justified the price and its target valuation of up to $764.4 million by noting net sales have steadily increased from $8 million in the 12 months ending Dec. 31, 2018 to $201.6 million in the first six months of 2025, representing a compound annual growth rate of 64.6%.
It also called out its innovation and diversifying portfolio as strengths. While the company helped pioneer the refrigerated baby food category from 2015 to 2023, it expanded into refrigerated oat bars in September 2023, dry baby snacks (including puffs) in March 2024, soft baked bars in July 2024, refrigerated protein bars in January 2025 and additional blends and snacks in March 2025.
The product innovation also reflects the company’s expansion beyond baby food into options for older children and even adults – a savvy move that extends engagement with shoppers beyond the initial years of life.
As a result, the company’s net sales were significantly diversified by June 30, 2025, with 68% coming from pouches, 30% from snacks and 2% from other. Two years earlier in 2023, the picture was very different with 94% of sales coming from pouches, 2% from snacks and 4% from other, according to the company’s SEC filing.
Beyond product innovation, Once Upon A Farm disrupted the baby food aisle more broadly by bringing coolers into a traditionally ambient space. The company’s 2,800 coolers are a “meaningful growth engine” for the company’s retailer customers in that they offer “convenience and efficiency for shoppers,” and correlate with more profitable baskets for retailers, according to the company.
Tariff troubles compromise an otherwise ‘differentiated supply chain’
To support its innovation and portfolio expansion, the company touts the strength of its “differentiated supply chain,” which in today’s environment is a double-edged sword.
As a B Corp, Once Upon A Farm prizes its ability to source ingredients that meet its “high standards and enforces rigorous quality control at every step,” including through production with its contract manufacturers, with which it says it has “strong business relationships.”
However, the company acknowledges, the ongoing trade war initiated by the Trump administration could negatively impact its business.
“Tariffs or other barriers to trade affecting Mexico and South America, where we source a significant portion of our fruit and vegetable ingredients, could lead to shortages and higher costs of procurement,” it notes in the SEC filing.
“New or increased tariffs could also negatively affect US national or regional economies or lead to increased inflation or recession, which could negatively impact consumer spending,” it adds.
How important is profitability?
Another challenge that could dampen investor appetite is the business not reaching profitability yet, despite strong sales.
The company reported a net loss of $48.12 million on revenue of $201.59 million for the 12 months ending June 30, 2025.
Still, investors recently told a group of CPG startups that profitability is not a requirement for investment as long as there is a clear path towards profitability and other dynamics of the business are buttoned up.
Growing household penetration signals strength and long runway
Despite these challenges, the company is optimistic given the significant runway ahead and trajectory of household penetration.
It says its products were in 4.4% of households by June 15, 2025 – up from 3.1% the previous year.
It attributes its growth in part to its mission-led approach and plans to drive awareness through a “modern and multi-faceted, consumer-driven marketing strategy that spans social media, traditional marketing, national partnerships and commercial TV campaigns.
It also will foster ongoing word of mouth, which it says is how 34% of its customers learned about it.
What is investors’ appetite for CPGs?
The IPO, which was originally slated for late last year but was delayed by the US government shutdown and holiday season, also could be a bellwether for how investors are thinking about dealmaking activity in the CPG sector.
Funding for the sector, including interest in IPOs, faltered in recent years thanks to uncertainty about tariff impacts and excitement about food-tech and AI, which captured the attention and funds of many investors.
This landscape may explain why Once Upon A Farm’s seemingly cautious share pricing.
Alex Frederick, Pitchbook senior research analyst for ag-tech and food-tech noted in a LinkedIn post yesterday that the company’s ask of $17 to $19 per share is “well above the 1.1X median for food and beverage CPG this year, but notably below the 3-5X multiples that premium functional brands like poppi and OLIPOP commanded in recent transactions.”
He added the private equity firms in 2025 became “more selective, prioritizing proven platforms over growth stories,” which contributed to a drop in third-quarter deals by 20% quarter-over-quarter.
“The marketing is signaling: Show us margin resilience and category defense, not just top-line velocity,” he said.
