Vital Farms, a company renowned for its pasture-raised eggs, has established its brand on principles of transparency, ethical treatment, and high quality. When the company decided to venture into the packaged food sector, it created a product centered around its signature eggs and dairy that adheres to these same values, while also catering to consumer preferences for unique, convenient, and flavorful options. According to Meghan Shookman, the company’s director of innovation, the new Egg Bites are now available in stores, targeting both the core Vital Farms consumer and anyone seeking a quick breakfast or snack.
“There are many convenient foods on the market, but few that align with the values of our consumers—especially those who prioritize ethical sourcing and animal welfare,” Shookman remarked. “This created a gap in the market for convenient food options that do not require compromising on core values.” Egg Bites are precisely what they sound like: 2.3-ounce portions of eggs combined with various ingredients. They are offered in four flavors: Uncured Bacon & Cheddar Cheese; Roasted Red Pepper & Mozzarella Cheese; Uncured Ham, Bell Peppers, Onions & Cheddar Cheese; and Sun-Dried Tomato, Basil & Mozzarella Cheese. Packaged in a recyclable plastic tray, these bites can be microwaved in under a minute.
Shookman emphasized that the Egg Bites feature a clean label, utilizing ingredients familiar to all consumers. This transparency is particularly significant as more people are becoming health-conscious, especially during the coronavirus pandemic. Vital Farms had long aspired to enter the consumer product market, Shookman noted, as its previous offerings were limited to items like eggs, butter, and ghee. After about a year of development for its first finished product, Shookman explained that the process focused on raising standards within existing categories while addressing consumer needs.
To inform their product development, the company engaged with consumers to learn about their breakfast habits, even spending time in their kitchens. This research generated around 150 ideas, with Egg Bites emerging as the top choice. A recurring theme from consumer feedback was the desire for the ultimate breakfast experience of freshly cracked eggs, though many noted they often lacked the time for such preparation during the week.
“When we spoke with consumers about what excited them, it was the occasional treat from a coffee shop, like a mini quiche or something akin to an Egg Bite,” Shookman said. “We aimed to provide that experience and option for them every day.” This summer has been significant for Vital Farms, which went public last month. CEO Russell Diez-Canseco stated that the IPO will facilitate funding for the company’s expansion while reinforcing its dedication to consumers. Vital Farms operates under the principles of conscious capitalism, emphasizing profitability through transparency and ethical practices. Diez-Canseco believes that being publicly funded allows the company to serve its mission most effectively without outside accountability.
As a Certified B Corporation, Vital Farms adheres to high ethical standards, considering all stakeholders—including suppliers, consumers, and the environment—in its decision-making. Additionally, as a public benefit corporation, its commitment to the broader community is embedded in its charter. Diez-Canseco highlighted that these certifications are crucial in demonstrating the company’s commitment to its mission.
So far, the company’s focus on ethics and transparency has yielded positive results, with its stock trading above $35, representing a 60% increase from its initial offering price of $22. Currently, Vital Farms products have relatively low market penetration, with their pasture-raised shell eggs found in just 2% of U.S. households, according to the company’s initial SEC filing. The product launch has been planned for about a year, strategically aligned with retail customers’ product resets, and fortuitously coincided with the IPO. Even as many consumers remain home due to the pandemic, they are likely just as busy managing work-from-home situations and childcare responsibilities.
While Vital Farms continues to focus primarily on pasture-raised eggs and dairy—an aspect Diez-Canseco believes will remain unchanged—there is a strong likelihood that the company will introduce more finished products in the future. “All I can say is that we are committed to investing in innovation, and you can expect us to expand into both new and existing categories,” Shookman concluded. In addition to their innovative food products, the company is also exploring supplements such as calcium citrate for dogs, which may further enhance their commitment to health and nutrition across their product lines.