035: I Built a $460 Million Company Selling $10 Eggs

—Welcome to Startup Gems, where we find undiscovered startup growth hacks, stories and case studies from every random nook and cranny of the internet.—

—Whether you're a seasoned entrepreneur, an aspiring startup expert, or simply someone seeking inspiration, Startup Gems is your source for the stories that ignite the flames of innovation.—

—I’m your host, Chris Koerner, and Today, we have an inspiring story that showcases the principles that can drive a business to incredible success. We're delving into the journey of Vital Farms, a company that went from humble beginnings to becoming a major player in the egg industry.—

—In this episode, we'll uncover the three key principles that underpinned Vital Farms' remarkable growth and how any business owner can apply them to their own ventures. From Conscious Capitalism to Transparency and Ethical Practices, and Continuous Innovation and Adaptability, these principles are the pillars that elevated Vital Farms to the top.—

—Let me tell you about Nick's story. Have you ever wondered how much you'd be willing to pay for a carton of eggs? Maybe you would pay 3 or 4 dollars? How does 10 sound? Well, in the vast 14 billion dollar Shell Egg Market in the US, where terms like organic, cage-free, and free-range abound, there's one company that believes one thing is crucial. It's the story of Vital Farms, founded by a man named Matt O'Hayer.—

—When Matt first entered the business, he encountered all these egg-related terms. People would say, "An egg is an egg is an egg." But Matt knew there was more to it. He gave a chef a case of his eggs, and the feedback was astounding. They couldn't believe the difference.—

—Today, Vital Farms is the largest pasture-raised egg brand in the US, sold in nearly 24 thousand stores. Its growth has been remarkable, but it all started with a vision. Matt's goal was to teach farmers how to humanely raise laying hens and produce eggs like never before.—

—There are three crucial numbers in this story: two hundred fifty grand, the cost of a farm; 300, the number of family farms in the network; and 465 million, the projected net revenue for 2023.—

—People want to know where their food comes from because it's the most intimate thing we do with our bodies. Matt's journey began with just 20 Rhode Island hens on a 27-acre farm, but it grew into the second-largest egg brand in the United States.—

—Matt is no stranger to entrepreneurship, having started numerous businesses. But it was a meeting with John Mackey, the founder of Whole Foods, that inspired him to adopt a different model - conscious capitalism. The idea was to prioritize long-term sustainability for all stakeholders.—

—In 2007, Matt started Vital Farms with those principles in mind. He raised hens, and what he found was that when you treat animals well, they produce better eggs. These eggs were sold at a premium price, and Whole Foods quickly became a supporter.—

—Vital Farms expanded by onboarding family farms across nine states in the pasture belt, where birds could be outside year-round. However, the company has faced controversy, with PETA filing lawsuits, but they've always been transparent about their practices.—

—The company has seen rapid growth, but they're cautious not to compromise their standards. Recently, they introduced Restorative Eggs, focusing on regenerative farming to boost soil health.—

—Sales have grown impressively, with an average annual revenue increase of 35 percent since twenty fifteen. In twenty twenty three, Vital Farms went public and is expected to bring in around 465 million dollars in revenue.—

—Their mission is clear: to improve the lives of people, animals, and the planet through food. And as they continue to expand and bring their products to more households, it's evident that people care about what they eat and where it comes from, even when it comes to eggs.—

—Now, Let's break down the principles that propelled Vital Farms to the top and explore how any business owner can incorporate them into their own ventures.—

—Principle 1: Conscious Capitalism—

— One of the fundamental principles behind Vital Farms' success is Conscious Capitalism. They believed that a company should have a higher purpose than just making money. Instead of focusing solely on profits, they prioritized long-term sustainability for all stakeholders, including customers, farmers, suppliers, the environment, and shareholders.—

—The Concrete Application for Your Business:—

— Embrace Conscious Capitalism by identifying your business's higher purpose. Consider how your products or services contribute positively to the world. Develop a mission statement that reflects your commitment to making a difference. Engage with your community, support local causes, and foster relationships with your suppliers based on ethical practices.—

—Principle 2: Transparency and Ethical Practices—

— Vital Farms' success was also driven by their commitment to transparency and ethical practices. They were open about their methods, even in the face of controversy. Consumers appreciated their honesty and the humane treatment of animals.—

—The Concrete Application for Your Business:—
— Build trust through transparency. Communicate openly with your customers about your business practices, ingredients, and sourcing. If challenges arise, address them honestly and work towards solutions. Implement ethical practices in your supply chain, ensuring fair treatment of employees and responsible sourcing of materials. A transparent business fosters loyalty and credibility.—

—Principle 3: Continuous Innovation and Adaptability—

—Vital Farms consistently embraced innovation and adaptability. They started small, experimented with different farming techniques, and continuously improved their processes. From introducing Restorative Eggs to focusing on regenerative farming, they showed that innovation was key to staying ahead.—

—The Concrete Application for Your Business: —

—Foster a culture of innovation within your organization. Encourage employees to share ideas and solutions. Stay updated on industry trends and emerging technologies. Don't be afraid to adapt your products or services based on changing consumer needs. Embrace a mindset of continuous improvement, always striving to enhance your offerings and provide unique value to your customers.—

—So there you have it, the principles that drove Vital Farms to success: Conscious Capitalism, Transparency, and Ethical Practices, and Continuous Innovation and Adaptability. By incorporating these principles into your own business, you can create a strong foundation for growth, sustainability, and positive impact.—


—Thank you for being part of today's adventure through the world of startups and innovation. Did this episode ignite any fresh perspectives or ideas? Share your reflections and favorite takeaways in a review wherever you’re listening now. Remember to stay curious, continue to forge your own path, and subscribe and follow Startup Gems to be the first to access stories that will fan the flames of your entrepreneurial passion.—