What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-03-10 compared with 2021-03-24 · 218 added, 179 removed, 201 unchanged (66% of the section changed)

Bringing Ethically Produced Food to the Table

Vital Farms is an ethical food company that is disrupting the U.S.

We have developed a framework that challenges the norms of the incumbent food model and allows us to bring high-quality products from our network of small family farms to a national audience.

Bringing Ethical Food to the Table

Vital Farms is an ethically minded food company that is disrupting the U.S.

We have developed a framework that challenges the norms of the incumbent food model and allows us to bring high-quality products from our network of family farms to a national audience.

This framework has enabled us to become the leading U.S.

brand of pasture-raised eggs and butter and the second largest U.S.

brand of pasture-raised eggs and the second largest U.S.

egg brand by retail dollar sales.

Our ethics are exemplified by our focus on the humane treatment of farm animals and sustainable farming practices.

We believe these standards produce happy hens with varied diets, which produce better eggs.

There is a seismic shift in consumer demand for ethically produced, natural, traceable, clean-label, great-tasting and nutritious foods.

Our ethics are exemplified by our focus on animal welfare and sustainable farming practices.

We believe our standards produce happy hens with varied diets, which produce better eggs.

There is a seismic shift in consumer demand for natural, traceable, clean-label, great-tasting and nutritious foods.

Supported by a steadfast adherence to the values on which we were founded, we have designed our brand and products to appeal to this consumer movement.

Our purpose is rooted in a commitment to Conscious Capitalism, which prioritizes the long-term benefits of each of our stakeholders (farmers and suppliers, customers and consumers, communities and the environment, crew members and stockholders).

Our business decisions consider the impact on all of our stakeholders, in contrast with the factory farming model, which principally emphasizes cost reduction at the expense of animals, farmers, consumers, crew members, communities and the environment.

These principles guide our day-to-day operations and, we believe, help us deliver a more sustainable and successful business.

Our approach has been validated by our financial performance and our designation as a Certified B Corporation, a certification reserved for businesses that balance profit and purpose to meet the highest verified standards of social and environmental performance, public transparency and legal accountability.

We make decisions based on what we believe is sustainable for all our stakeholders.

Simply put, we will not be a sustainable business if our stakeholders are not sustainable as well.

We believe our collective sustainable business practices will enable us to fulfill our purpose of improving the lives of people, animals and the planet through food, now and long into the future.

For us, it is not about short-term outcomes or a trade-off between purpose and profit.

We are fierce business competitors who believe that prioritizing the long-term viability of all stakeholders will produce stronger outcomes, for everyone, over time.

Our approach has been validated by our financial performance and our initial designation and January 2022 recertification as a Certified B Corporation, a certification reserved for businesses that balance profit and purpose to meet the highest verified standards of social and environmental performance, public transparency and legal accountability.

Our Ethical Decision-Making Model

Guiding Principles

Farmers and Suppliers

•Forming strong relationships with our network of more than 200 small family farms, who are the foundation of our resilient and reliable supply chain

Customers and Consumers

•Delivering the transparency and quality around food products that today’s consumers demand

•Empowering our crew members by investing in their financial security, development and overall well-being

Community and Environment

•Investing in our community and being conscious stewards of the environment

•Building a sustainable company for the long term by delivering stockholder value

We have scaled our brand through our strong relationships with small family farms and deliberate efforts to design and build the infrastructure to bring our products to a national audience.

Today, with a network of more than 200 family farms, we believe our pasture-raised products have set the national standard for ethically produced food.

We believe the success of our relationships with small family farms and the efficiency of our supply chain provide us with a competitive advantage in the approximately $45 billion U.S.

We have scaled our brand through our strong relationships with family farms and deliberate efforts to design and build the infrastructure to bring our products to a national audience.

Today, with a network of more than 275 family farms, we believe we have set the national standard for pastured-raised eggs.

We believe the success of our relationships with family farms and the efficiency of our supply chain provide us with a competitive advantage in the approximately $45 billion U.S.

natural food and beverage industry, in which achieving reliable supply at a national scale can be challenging.

In 2017, we opened Egg Central Station, a shell egg processing facility in Springfield, Missouri, which is centrally located within our network of family farms.

Egg Central Station is capable of packing three million eggs per day and has achieved Safe Quality Food, or SQF, Excellent rating, the highest level of such certification recognized by the Global Food Safety Initiative, or GFSI.

In addition, Egg Central Station is the only egg facility, and we are one of only six companies globally to have received the Safe Quality Food Institute, or SQFI, Select Site certification, indicating that the site has voluntarily elected to undergo annual unannounced recertification audits by SQFI, the organization responsible for administering a global food safety and quality program known as the SQF Program.

The design of Egg Central Station includes investments in support of each of our stakeholders, from our crew members (daylighting, climate control, slip resistant floors in the egg grading room), to the community and environment (consulting with the community before we built the facility, restoring native vegetation on the property, best-in-class storm water management), to our customers and consumers (food safety and maintenance investments far beyond regulatory requirements).

Egg Central Station is capable of packing three million eggs per day and has achieved Safe Quality Food, or SQF, Level 3 certification, the highest level of such certification recognized by the Global Food Safety Initiative, or GFSI.

In addition, Egg Central Station is the only egg facility, and, as of January 2020, we were one of only six companies (and ten sites) globally, to have received the Safe Quality Food Institute, or SQFI, Select Site certification, indicating that the site has voluntarily elected to undergo annual unannounced recertification audits by SQFI, the organization responsible for administering a global food safety and quality program known as the SQF Program.

The design of Egg Central Station includes investments in support of each of our stakeholders, from our crew members (daylighting, climate control, slip resistant floors in the egg grading room), to the community and environment (consulting with the community before we built the facility, restoring native vegetation on the property, best-in-class stormwater management), to our customers and consumers (food safety and maintenance investments far beyond regulatory requirements).

In November 2019, we began construction on a facility expansion that will nearly double our current square footage.

This expansion will enable us to double our capacity to meet growing demand.

We expect the expansion to be operational in early 2022.

We believe owning and operating this important element of our supply chain is a key differentiator and provides us with a competitive advantage, which we intend to continue to leverage to grow both our net revenue and gross margin.

Our loyal and growing consumer base has fueled the expansion of our brand from the natural channel to the mainstream channel and facilitated our entry into the foodservice channel.

As of December 2020, we offer 23 retail stock keeping units, or SKUs through a multi-channel retail distribution network across more than 16,000 stores.

Our products generate stronger velocities and, we believe, greater profi tability per unit for our retail customers in key traffic-generating categories as compared to products offered by our competitors.

We believe we have significant room for growth within the retail and, in the medium- to long-term, foodservice channels and can capture this opportunity by growing brand awareness and through new product innovation.

We also believe there are incremental growth opportunities in additional distribution channels, including the convenience, drugstore, club, military and internation al markets, which we may access along with retail growth opportunities to enable us to continue our net revenue growth.

We have built a sustainable company founded on ethically produced products that increasingly resonate with consumers.

We expect the expansion to be complete in mid-2022.

We believe owning and operating this important element of

our supply chain is a key differentiator and provides us with a competitive advantage, which we intend to continue to leverage to grow both our net revenue and gross margin.

Our loyal and growing consumer base has fueled the expansion of our brand from the natural channel to the mainstream channel and has facilitated our entry into the foodservice channel.

As of December 2021, we offer 32 retail stock keeping units, or SKUs, through a multi-channel retail distribution network across more than 20,900 stores and an online shopping platform launched in 2021.

Our products generate stronger velocities and, we believe, greater profitability per unit for our retail customers in key traffic-generating categories as compared to products offered by our competitors.

We believe we have significant room for growth within the retail and, in the medium- to long-term, foodservice channels, and we believe that we can capture this opportunity by growing brand awareness and through new product innovation.

We also believe there are incremental growth opportunities in additional distribution channels, including the convenience, drugstore, club, military and international markets, which we may access along with retail growth opportunities to enable us to continue our net revenue growth.

We have built a sustainable company founded on products that increasingly resonate with consumers.

Our trusted brand and Conscious Capitalism-focused business model have resulted in significant growth.

1 unchanged sentence

From fiscal 2019 to fiscal 2021, we grew net revenue by 85%, and the number of stores carrying our products increased by 24%.

Going forward, we believe the consumer movement away from factory farming practices will continue to fuel demand for ethically produced food.

We believe these demands extend to the food industry and that consumers are recognizing the benefits of pasture-raised egg and dairy products.

Management is committed to ensuring our values remain aligned with those of our consumers while delivering stockholder value.

Going forward, we believe the consumer movement away from factory farming practices will continue to fuel demand for our products.

We believe these demands extend to the food industry and that consumers are recognizing the benefits of our egg and dairy products.

Our management team is committed to ensuring our values remain aligned with those of our consumers while delivering stockholder value.

Evidence of our historical success in continuing to scale our business is shown in the graphics below.

All dates refer to the year ended December 31, except for 2018, 2019 and 2020, which refer to the fiscal year ended December 30, December 29 and December 27, respectively.

All dates refer to the year ended December 31, except for 2018, 2019, 2020, and 2021, which refer to the fiscal year ended December 30, December 29, December 27 and December 26, respectively.

Number of Stores

8 unchanged sentences

We meticulously designed Egg Central Station in service of all of our stakeholders by improving on the best practices we observed across numerous world-class facilities.

Today, Egg Central Station is capable of packing three million eggs per day and has achieved an SQF Excellent rating, the highest level of such certification recognized by GFSI.

In addition, Egg Central Station is the only egg facility, and we are one of only six companies globally to have received the SQFI Select Site certification.

Today, Egg Central Station is capable of packing three million eggs per day and has achieved an SQF Level 3 certification, the highest level of such certification recognized by GFSI.

In addition, Egg Central Station is the only egg facility, and as of January 2020, we were one of only six companies (and ten sites) globally to have received the SQFI Select Site certification.

Demand for our high-quality products has enabled us to expand our brand beyond the natural channel and into the mainstream channel through relationships with Albertsons Companies, Inc., or Albertsons, The Kroger Co., or Kroger, Publix Super Markets, Inc., or Publix, Target Corporation, or Target, Walmart Inc., or Walmart, and numerous other national and regional food retailers.

As of December 2020, our ethically produced pasture-raised products are sold in more than 16,000 stores nationwide.

Over the course of our journey, our founder, Matthew O’Hayer, has continued to inform our strategic vision and remains intimately involved with the business as our executive chairman.

Our purpose is to bring ethically produced food to the table.

We do this by partnering with family farms that operate within our strictly defined set of ethical food production practices.

We are motivated by the influence we have on rural communities through creating impactful, long-term business opportunities for small family farmers.

As of December 2021, our products are sold in more than 20,900 stores nationwide and through our online shopping platform.

course of our journey, our founder, Matthew O’Hayer , has continued to inform our strategic vision and remains intimately involved with the business as our executive chairman .

Our purpose is to improve the lives of people, animals, and the planet through food.

Our mission is to bring ethical food to the table.

We carry out our purpose and mission by partnering with family farms that operate within our strictly defined set of ethically minded practices.

We are motivated by the influence we have on rural communities through creating impactful, long-term business opportunities for family farmers.

Moreover, we are driven to stand up for sustainable production practices that have been largely cast aside under the factory farming system.

In our view, this system has been consistently misguided, focused on producing products at lowest cost rather than driving long-term and sustainable benefits for all stakeholders.

In our view, the factory farming system has been consistently misguided, focused on producing products at lowest cost rather than driving long-term and sustainable benefits for all stakeholders.

Since inception, our values have been rooted in the principles of Conscious Capitalism.

33 unchanged sentences

We believe the success of our brand demonstrates that consumers are demanding premium products that meet a higher ethical standard.

We have expanded into the mainstream channel while still continuing to command premium prices for our ethically produced products, which sell for as much as three times the price of commodity eggs.

We have expanded into the mainstream channel while continuing to command premium prices for our products, which sell for as much as three times the price of commodity eggs.

We believe that our products are more attractive to retail customers because they help generate growth, deliver strong gross profits and drive strong velocities, as represented by the natural channel velocities depicted below.

2 unchanged sentences

Refrigerated Butter (3)

Refrigerated Eggs & Refrigerated Butter - SPINS, LLC, Natural Channel, 52 Weeks Ending December 27, 2020

Refrigerated Eggs & Refrigerated Butter - Crown, Natural Channel, 52 Weeks Ended December 26, 2021

Channel Velocity ($ / Store / Item / Week) is defined as weekly sales per store per item of products sold in retailers included in the Natural Channel.

4 unchanged sentences

We carefully select and partner with family farms in the Pasture Belt, the U.S.

region where pasture-raised eggs can be produced year-round.

We establish supply contracts that we believe are attractive for all parties, demonstrate our commitment to our network of small family farms through educational programs that transfer critical best practice knowledge and pay farmers competitive prices for high-quality pasture-raised eggs.

region where our eggs can be produced year-round.

We establish supply contracts that we believe are attractive for all parties, demonstrate our commitment to our network of family farms through educational programs that transfer critical best practice knowledge and pay farmers competitive prices for high-quality eggs.

During fiscal year 2021, we experienced no voluntary attrition for supply contract renewals.

We believe our commitment to farmers facilitates more sustainable farm operations and significantly reduces turnover.

Our network of small family farms gives us a strategic advantage through a scaled and sustainable supply chain and allows us to go to market with the highest quality pasture-raised premium products.

Our network of family farms gives us a strategic advantage through a scaled and sustainable supply chain and allows us to go to market with the highest quality premium products.

Map of the Pasture Belt

3 unchanged sentences

We also have a deep bench of talent with strong business and operational experience, and crew members at all levels of our organization are passionate about addressing the needs of our stakeholders.

We have leveraged the experience and passion of our C-crew, our founder and executive chairman, and our other crew members to grow net revenue over 234% since the beginning of 2016, enter our second major food category, butter, and build our first shell egg processing facility, Egg Central Station.

We have leveraged the experience and passion of our C-crew, our founder and executive chairman, and our other crew members to grow net revenue over 253% since the beginning of 2017, enter our second major food category, butter, and build and expand our first shell egg processing facility, Egg Central Station.

Our Growth Strategies

We believe our investments in our brand, our stakeholders and our infrastructure position us to continue delivering industry-leading growth that outpaces both the natural food industry and the overall food industry.

Expand Household Penetration through Greater Consumer Awareness

Critical to the success of our mission is our ability to share the Vital Farms story with a broader audience.

By educating consumers about our brand, our values and the premium quality of our products, we intend to increase our household penetration.

Our relatively low household penetration of 3.9% for our pasture-raised shell eggs, compared to the shell egg category penetration of approximately 98%, shows that expanding the national presence of our brand offers a significant runway for future growth.

We are well positioned to increase household penetration of our products given their alignment with consumer trends and approachability with consumers.

We intend to increase the number of consumers who buy our products by using digitally integrated media campaigns, social media tools and other owned media channels.

We believe these efforts will educate consumers on our ethical values and the attractive attributes of our pasture-raised products, generate further demand for our products and ultimately expand our consumer base.

Grow Within the Retail Channel

By leveraging greater consumer awareness and demand for our brand, we believe there is significant opportunity to grow volume with existing retail customers.

Compete to Win in Our Current Categories

Continuing to compete at the top of our current categories will ensure we are continuing to earn trust with our fans across all consumer groups and fuel our continued profitable growth.

We believe there is significant opportunity to grow volume with existing retail customers by building consumer awareness and demand for our brand.

Our products generate stronger velocities and, we believe, greater profitability per unit for our retail customers in the categories in which we compete.

By capturing greater shelf space, driving higher product velocities and increasing our SKU count, we believe there is meaningful runway for further growth with existing retail customers.

Beyond our existing retail footprint, we believe there is significant opportunity to gain incremental stores from existing retail customers as well as to add new retail customers.

We also believe there are significant further long-term opportunities in additional distribution channels, including the convenience, drugstore, club, military and international markets.

Expand Footprint across Foodservice

We believe there is significant demand for our products in the foodservice channel.

We see significant opportunity for medium- to long-term growth in this channel through sales to foodservice operators supp orted by joint marketing and advertising.

Our brand has a differentiated value proposition with consumers, and we believe consumers are increasingly demanding ethically produced ingredients when they eat outside of the home.

We are also working with Acosta Foodservice, a foodservice sales and marketing agency in the consumer-packaged goods industry, to increase our broadline distribution and presence in national and regional restaurant chains.

We believe that more consumers will look for our products on menus, particularly with foodservice partners whose values are aligned with our own, and that on-menu branding of our products as ingredients in popular meals and menu items will drive traffic and purchases in the foodservice channel.

An example of our recent foodservice growth initiative is our relationship with Tacodeli, which sells breakfast tacos made exclusively with our pasture-raised shell eggs across 11 restaurant locations and approximately 90 points of distribution, such as coffee shops and farmers’ market stands, across Texas.

We have launched similar regional concepts with Moe’s Broadway Bagel, an East Coast-style family-run bagel chain in the Denver/Boulder, Colorado area;

Cafe Patachou, a breakfast and lunch restaurant based in the Indianapolis, Indiana area with 5 locations;

Roam Artisan Burgers, a fast-casual burger restaurant dedicated to high-quality sourcing in the San Francisco, California area with 6 locations;

Homegrown, a sustainability-focused brand in the Seattle, Washington area with 11 locations;

and Pura Vida, a fresh all-day concept in the Miami, Florida area with 7 locations .

We believe branded foodservice offerings will further drive consumer awareness of our brand and purchase rates of our products in the retail channel.

Extend Our Product Offering through Innovation

The successes of our core products have confirmed our belief that there is significant demand for pasture-raised and ethically produced food products.

We expect to continue to extend our product offerings through innovation in both new and existing categories, including with our launch of pasture-raised egg bites in August 2020.

In 2018, we launched the only pasture-raised hard-boiled eggs in the U.S.

market, and in 2019, we launched both ghee and liquid whole eggs, the latter of which are the only pasture-raised liquid whole eggs in the U.S.

The success of our product portfolio and our proprietary consumer surveys confirm our belief that there is significant demand for our brand across a wide spectrum of food categories.

Within this broader market, we believe the U.S.

refrigerated value-added dairy category represents a total addressable market of $34.5 billion and is the closest adjacency and best near-term opportunity for our brand.

We have several products in our innovation pipeline that we believe will be successful in these adjacent markets.

By capturing greater shelf space, driving higher product velocities and increasing our average SKU count per retail partner, we believe there is meaningful runway for further growth with existing retail customers.

Beyond our existing retail footprint, we believe there are significant opportunities to gain incremental stores from existing retail customers and to add new retail customers.

We also believe there are significant further long-term opportunities in additional distribution channels, including the convenience, drugstore and club channels.

Additionally, we believe there is significant demand for our products in the foodservice channel since we offer versatile ingredients with high menu penetrations across all commercial and non-commercial operator segments.

We see considerable opportunity for medium- to long-term growth in this channel by increasing our category market share through sales to values-aligned foodservice operators and their distributors.

Expand Our Portfolio

We are a food company.

In order to achieve our goal of becoming the most trusted food brand, we must expand beyond eggs and butter.

We believe making strategic bets on larger-scale opportunities will support this expansion.

The successes of our core products have confirmed our belief that there is significant demand for ethically produced food products, and our proprietary consumer surveys confirm our belief that there is significant demand for our brand across a wide spectrum of food categories.

We expect to continue to extend our product offerings through innovation in both new and existing categories.

Strengthen the Brand

We will compete in the marketplace by aspiring to build the most trusted brand.

Critical to the success of this mission is our ability to share our story with a broader audience.

We intend to increase our household penetration by educating consumers about our brand, our values and the premium quality of our products.

Our relatively low household penetration of 5.0% for our shell eggs, compared to the shell egg category penetration of approximately 98%, demonstrates that expanding the national presence of our brand offers a significant runway for future growth.

We believe we are well positioned to increase household penetration of our products given their alignment with consumer trends and approachability with consumers.

We intend to increase the number of consumers who buy our products by using digitally integrated media campaigns, social media tools and other owned media channels, and we believe these efforts will educate consumers on our values and the attractive attributes of our products, generate further demand for our products and ultimately expand our consumer base.

Scale a World-Class Organization

We have always believed that our most important competitive advantage is great people, operating as one, high-performing team in a strong culture, with the right tools to help us reach our potential, both individually and collectively.

We have recently combined our strategic and people functions under a single leader to unify our organization in attracting talent that supports our growth initiatives and our culture.

This effort is critical not only to our current success but the direction of our company in the future.

As we continue our focus on scaling a world-class organization, we believe this tighter link between where we are going, the processes we will put in place to get there, and, most importantly, how we engage, inspire, and develop our crew members will fuel our continued growth.

Product Overview

We currently produce six pasture-raised products sourced from animals raised on small family farms:

shell eggs, butter, hard-boiled eggs, ghee, liquid whole eggs and egg bites.

Our original and core product is pasture-raised shell eggs.

We produce products sourced from animals raised on family farms, including shell eggs, butter, hard-boiled eggs, liquid whole eggs, ghee and convenient breakfast offerings.

Our original and core product is shell eggs.

We defined the pasture-raised egg category by following European-rooted standards codified by the Certified Humane Program, which require each hen to have at least 108 square feet of land and daily outdoor access.

Our pasture-raised shell eggs are ethically produced and our consumers consistently tell us that they provide a richer taste and color than other eggs on the market.

The retail varieties of our pasture-raised shell eggs are based on supplemental feed type (certified organic, non-GMO project verified and conventional), egg size (small, medium, large, extra large and jumbo) and pack size (6, 12 and 18 count).

Our shell eggs are ethically produced, and our consumers consistently tell us that they provide a richer taste and color than other eggs on the market.

The retail varieties of our shell eggs are based on supplemental feed type (certified organic, Non-GMO Project verified and conventional), egg size (medium, large, extra-large and jumbo) and pack size (6, 12 and 18 count).

In 2015, we saw an opportunity in the U.S.

refrigerated value-added dairy market for premium, pasture-raised butter with artisanal qualities, such as higher butterfat content, sea salt and traditional slow-churn methods.

refrigerated value-added dairy market for premium butter with artisanal qualities, such as higher butterfat content, sea salt and traditional slow-churn methods.

Our consumer research and basket analysis also identified butter as a highly complementary product category to eggs in terms of usage and buyer profile.

Today, we offer unsalted and sea salted varieties of our pasture-raised butter, which has 85% butterfat and is sold in two-stick packs.

In March 2018, we launched pasture-raised hard-boiled eggs to broaden the appeal of our brand and satisfy an incremental usage occasion—ready-to-eat snacking.

That launch was quickly followed by the introduction of our pasture-raised liquid whole eggs in August 2019.

We currently provide the only pasture-raised liquid whole egg in the estimated $3.2 billion U.S.

Today, we offer unsalted and sea salted varieties of our butter, which has 85% butterfat and is sold in two-stick and four-stick packs.

In addition, we offer a spreadable butter churned with avocado oil in a tub format.

Hard-Boiled Eggs and Liquid Whole Eggs

In March 2018, we launched hard-boiled eggs to broaden the appeal of our brand and satisfy an incremental usage occasion—ready-to-eat snacking.

That launch was followed by the introduction of our liquid whole eggs in August 2019.

We currently provide one of the only pasture-raised liquid whole egg offerings in the estimated $3.3 billion U.S.

processed egg market, which has seen little innovation in decades and has traditionally been dominated by egg whites.

In February 2019, we introduced pasture-raised ghee, followed in August 2019 by the release of a first of its kind ghee in a squeeze bottle format.

Our pasture-raised ghee meets the standards consumers expect from the Vital Farms brand, with original and pink Himalayan salt varieties.

In August 2020, we introduced our pasture-raised egg bites, which are made with ethically sourced ingredients, such as pasture-raised eggs and cheese, humanely raised meats, and vegetables, and are gluten-free.

The egg bites are available in four flavors:

In February 2019, we introduced ghee, followed in August 2019 by the release of a first-of-its-kind ghee in a squeeze bottle format.

Our ghee meets the standards consumers expect from the Vital Farms brand and is offered in original and Himalayan pink salt varieties.

Convenient Breakfast

In August 2020, we introduced our egg bites.

This product is made with ingredients such as pasture-raised eggs and cheese, vegetables and humanely raised meats.

Our egg bites are gluten-free and are available in four flavors:

uncured bacon and cheddar cheese;

2 unchanged sentences

and sun-dried tomato, basil and mozzarella cheese.

Each package contains two fully cooked egg bites and is able to be warmed directly in the microwave for a convenient and high protein breakfast or snack.

Motivated by our mission, our success and our customers’ feedback, we continue to innovate and expand our product offering to address growing consumer demand for pasture-raised and ethically produced products.

PASTURE-RAISED SHELL EGGS

PASTURE-RAISED BUTTER

PASTURE-RAISED HARD-BOILED EGGS

PASTURE-RAISED GHEE

PASTURE-RAISED LIQUID WHOLE EGGS

PASTURE-RAISED EGG BITES

The successes of our core products have confirmed our belief that there is significant demand for pasture-raised and ethically produced food products.

We expect to continue to extend our product offerings through innovation in both existing and new categories, including with our launch of pasture-raised egg bites in August 2020.

Each package contains two fully cooked egg bites that can be warmed directly in the microwave for a convenient and high-protein breakfast or snack.

In August 2021, we introduced our breakfast bars, warm, egg-based bars made with ethically sourced ingredients.

Breakfast bars are available in four flavors:

uncured bacon and cheddar cheese with hash browns;

broccoli and cheddar cheese with a pastry crust;

sausage and cheddar cheese with a cheese crust;

and southwest fire roasted corn with sweet potato.

In January 2022, we decided to discontinue our convenient breakfast offerings, which we anticipate will occur in full before year-end 2022.

Motivated by our mission, our success and our customers’ feedback, we continue to innovate and expand our product offering to address growing consumer demand.

STICK & TUB BUTTER

HARD-BOILED EGGS

LIQUID WHOLE EGGS

CONVENIENT BREAKFAST

The successes of our core products have confirmed our belief that there is significant demand for ethically produced food products.

We expect to continue to expand our product offerings through innovation in both existing and new categories.

We have a dedicated product development team that leverages comprehensive consumer insights and trend data to provide innovative solutions and ideas that meet new consumer needs and usage occasions.

We also have a proven innovation model that utilizes a trusted network of partners to bring products to market without requiring significant upfront investment.

We are committed to building on the success of our recent product launches and continuing to introduce consumers to our expanding range of ethically produced food products.

Demonstrated Track Record of Portfolio Expansion

Store count figures as of December 27, 2020.

We are committed to building on the success of our recent product launches and continuing to introduce consumers to our expanding range of product offerings.

Our multi-faceted, consumer-centric marketing strategy has been instrumental in building our brand and driving net revenue.

Our marketing strategy is aimed at solidifying our brand’s positioning as a leading provider of ethically produced food.

Our marketing strategy is aimed at solidifying our brand’s positioning as a leading provider of ethically minded food.

We execute on this strategy by advertising through digitally integrated media campaigns, social media tools and other owned media channels.

7 unchanged sentences

Our brand awareness is represented by a strong social media following, with approximately 122,000 Instagram followers.

Building on prior success, we will continue to invest in the brand through digitally integrated national media campaigns and build customer loyalty through other media formats, including our quirky Vital Times newsletter, now in its tenth year of print, which is placed in each egg carton.

During the past two years, we have circulated over 78 million copies of our V ital Times newsletter.

Building on prior success, we will continue to invest in the brand through digitally integrated national media campaigns and build customer loyalty through other media formats, including our quirky Vital Times newsletter, now in its eleventh year of print, which is placed in each egg carton.

During the past two years, we have circulated approximately 100 million copies of our Vital Times newsletter.

Building upon a landscape of shifting consumer preferences, we are focused on reaching new consumers to educate them about our ethically focused value proposition.

2 unchanged sentences

Our Customers

We market our products throughout the United States with the majority of our net revenue coming from our pasture-raised egg products.

As of December 2020, we currently distribute through third parties and direct to retailers to reach more than 16,000 stores.

With significant expansion in recent years, our retail sales are evenly distributed between the natural channel and mainstream channel.

We market our products throughout the United States with the majority of our net revenue coming from our shell egg products.

As of December 2021, we distribute through third parties and direct to retailers to reach more than 20,900 stores.

With significant expansion in recent years, our retail sales are distributed between the natural channel and mainstream channel.

Because of our brand equity, loyal consumer base and expanding line of high-quality products, we believe there are attractive growth opportunities across these channels, in addition to a sizable opportunity in the foodservice channel in the medium- to long-term.

1 unchanged sentence

Natural Channel

Natural channel retailers, including Whole Foods and Sprouts, represented approximately 52%, 51% and 47% of our retail dollar sales in years 2018, 2019 and 2020, respectively.

Natural channel retailers, including Whole Foods and Sprouts, represented approximately 51%, 47% and 42% of our retail dollar sales in fiscal years 2019, 2020 and 2021, respectively.

Mainstream Channel

3 unchanged sentences

We also continue to expand our relationships with Albertsons, Publix, Target and Walmart.

The mainstream channel represented approximately 48%, 49% and 53% of our retail dollar sales in years 2018, 2019 and 2020, respectively.

The mainstream channel represented approximately 49%, 53% and 58% of our retail dollar sales in fiscal years 2019, 2020 and 2021, respectively.

Foodservice Channel

In addition to our primary natural and mainstream channels, we have a presence in foodservice through the sale of shell eggs to select accounts.

We expect our foodservice business to continue to grow in the medium- to long-term through expansive new relationships with broad-line distributors, as well as direct accounts.

In years 2018, 2019 and 2020, the foodservice channel accounted for approximately 2%, 2% and 1%, respectively, of our net revenue.

Our established foodservice relationships help to extend our marketing efforts through unique co-branding opportunities.

In addition to our primary natural and mainstream channels, we have a presence in foodservice by selling shell and value-added eggs to hundreds of foodservice commercial and non-commercial operators across the country.

We expect our foodservice business to

continue to grow in the medium- to l ong-term through expansive new relationships with broad-line distributors, as well as regional and national restaurant chains .

In fiscal years 201 9 , 20 20 and 202 1 , the foodservice channel accounted for approximately 2%, 1 % and 1 %, respectively, of our net revenue.

Our established foodservice partnerships help to extend our marketing efforts through unique co-branding opportunities.

We plan to continue to capitalize on these opportunities as we work to introduce new products through the foodservice channel.

One example of our successful foodservice programs is Tacodeli.

In the spring of 2019, Tacodeli committed to exclusively using Vital Farms eggs for its breakfast tacos, branded with our logo on menus and taco wrappers.

We have also built a marketing partnership with Tacodeli to demonstrate the quality of our co-branded offering and to increase consumer awareness of our brands via social media, public relations and other events.

Vital Farms and Tacodeli Co-Branding

Our products can also currently be found in micro-markets in the Austin, Texas offices of Apple Inc., Facebook, Inc., Google LLC and YETI.

We also believe there is significant additional opportunity in the hospitality industry, college and universities, and additional restaurant chains.

One example of our successful foodservice programs is HomeState, a Texas kitchen with four locations in Southern California.

At the start of 2022, HomeState committed to exclusively using our liquid whole eggs for its breakfast tacos, branded with our logo on menus and throughout their guest experience assets.

We have also built a robust marketing partnership with HomeState to enhance their perceived consumer value and increase consumer awareness of each of our brands via social media, public relations and other events.

Vital Farms and HomeState Co-Branding

We have strategically designed our supply chain to ensure high production standards and optimal year-round operation.

We are motivated by the positive impact we have on rural communities and enjoy a strong relationship and reputation with our network of more than 200 small family farms.

We are motivated by the positive impact we have on rural communities and enjoy a strong relationship and reputation with our network of more than 275 family farms.

In order to capitalize on this strong supply network, we built a state-of-the-art shell egg processing facility, Egg Central Station in Springfield, Missouri.

Egg Central Station is approximately 82,000 square feet and utilizes highly automated equipment to grade and package our shell egg products.

The design of our facility includes investments in support of each of our stakeholders, from our crew members (daylighting, climate control, slip resistant floors in the egg grading room), to the community and environment (consulting with the community before we built the facility, restoring native vegetation on the property, best-in-class storm water management), to our customers and consumers (food safety and maintenance investments far beyond regulatory requirements).

Today, Egg Central Station is capable of packing three million eggs per day and has achieved an SQF Excellent rating, the highest level of such certification recognized by GFSI.

In addition, Egg Central Station is the only egg facility, and we are one of only six companies globally to have received the SQFI Select Site certification, indicating that the site has voluntarily elected to undergo annual unannounced recertification audits by SQFI, the organization responsible for administering a global food safety and quality program known as the SQF Program.

To facilitate further growth, we have established a plan to double the capacity of Egg Central Station through a mirror-image expansion adjacent to the existing location.

Egg Central Station is currently approximately 82,000 square feet and utilizes highly automated equipment to grade and package our shell egg products.

This expansion will enable us to double our capacity to meet growing demand.

We began construction in November 2019 and expect the expansion to be operational in early 2022.

We expect the expansion to be complete in mid-2022.

Our eggs are kept in on-farm coolers using precise equipment specified by us.

The eggs are then collected on a regular basis by a third-party freight carrier and placed in cold storage until packing for shipment to customers.

Each of our butter, ghee, hard-boiled eggs, liquid whole egg and egg bites products have a dedicated co-manufacturing partner.

To support the growth of our business, we are focused on expanding existing relationships and establishing new co-manufacturing relationships.

Each of our butter, ghee, hard-boiled eggs, liquid whole egg and convenient breakfast products have a dedicated co-manufacturing partner.

To support the growth of our business, we are focused on expanding existing co-manufacturing relationships where appropriate and establishing new relationships.

Our egg packaging consists primarily of corrugated boxes and egg cartons, and we use a limited amount of recycled plastic packaging.

5 unchanged sentences

We compete with large egg companies such as Cal-Maine, Inc.

and large international food companies such as Ornua (Kerrygold).

We also compete directly with local and regional egg companies, as well as private-label specialty egg products processed by other egg companies.

In our market, competition is based on, among other things, product quality and taste, brand recognition and loyalty, product variety, product packaging and package design, shelf space, reputation, price, advertising, promotion and nutritional claims.

and large international food companies such as Ornua Co-operative Limited (Kerrygold).

We also compete directly with local and regional egg and dairy companies, as well as private-label specialty products processed by other egg and dairy companies.

In our market,

competition is based on, among other things, product quality and taste, brand recognition and loyalty, product variety, product packaging and package design, shelf space, reputation, price, advertising, promotion and nutritional claims.

Shell eggs may be sourced from hens that are caged, cage-free, free-range or pasture-raised.

Large egg companies offer commodity eggs sourced from caged hens, and in an attempt to address gr owing consumer demand for ethically produced and higher quality eggs, they have also grown their cage-free and free-range offerings.

Although we operate in competitive industries, we believe that we have a strong and sustainable competitive advantage based on an ongoing process of values-driven decisions, our fundamental commitment to producing food ethically and humanely, the trust we have developed in our brand, and our ability to provide reliable supply to our distribution partners and customers.

Large egg companies offer commodity eggs sourced from caged hens, and in an attempt to address growing consumer demand for ethically produced and higher quality eggs, they have also grown their cage-free and free-range offerings.

Although we operate in competitive industries, we believe that we have a strong and sustainable competitive advantage based on an ongoing process of values-driven decisions, our fundamental commitment to producing ethically minded food, the trust we have developed in our brand and our ability to provide reliable supply to our distribution partners and customers.

We built and operate what we believe is one of the largest sourcing and distribution networks of family farms with strong growth potential.

By focusing on the interests of each of our stakeholders, we believe we have created a model that attracts the best family farm partners, produces the highest quality product and creates benefits for all parties.

By focusing on the interests of each of our stakeholders, we believe we have created a model that attracts the best family farm partners, produces the highest quality products and creates benefits for all parties.

We believe our experience in building this network will provide significant scale and execution advantages as we continue to expand.

11 unchanged sentences

In addition, with respect to meat products, the USDA has primary jurisdiction for the regulation of products made wholly or in part from cattle, sheep, swine, or goats, such as certain of our egg bite products which contain bacon or ham, subject to certain exceptions.

Among other things, the facilities in which our products are manufactured or processed must register with the FDA and/or the USDA, comply with cGMPs and comply with a range of food safety and labeling requirements established by the Federal Food, Drug, and Cosmetic Act, as amended by the Food Safety Modernization Act of 2011, the Egg Products Inspection Act, the Federal Meat Inspection Act, the Organic Foods Production Act and the Agricultural Marketing Act of 1946, among other laws implemented by the FDA, the USDA and other regulators.

Among other things, the facilities in which our products are manufactured or processed must register with the FDA and/or the USDA, comply with current good manufacturing practices, or cGMPs, and comply with a range of food safety and labeling requirements established by the Federal Food, Drug, and Cosmetic Act, as amended by the Food Safety Modernization Act of 2011, the Egg Products Inspection Act, the Federal Meat Inspection Act, the Organic Foods Production Act and the Agricultural Marketing Act of 1946, among other laws implemented by the FDA, the USDA and other regulators.

The FDA and the USDA have the authority to inspect these facilities depending on the type of product involved;

9 unchanged sentences

Our operations, and those of our co-manufacturers, distributors and suppliers, are subject to various laws and regulations relating to environmental protection and worker health and safety matters.

Our Corporate Infor mation

We were founded in 2007, originally incorporated in Texas in July 2009 and reincorporated in Delaware in June 2013, and we became a public benefit corporation in Delaware in October 2017.

Our principal executive offices are located at 3601 South Congress Avenue, Suite C100, Austin, Texas 78704, and our telephone number is (877) 455-3063.

Our website address is www.vitalfarms.com.

Information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report or any of our other filings with the Securities and Exchange Commission, or SEC.

We make available on our website, free of charge, our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

The SEC maintains a website that contains reports, proxy and information statements and other information regarding our filings at www.sec.gov.

Certified B Corporation

While not required by Delaware law or the terms of our certificate of incorporation, we have elected to have our social and environmental performance, accountability and transparency assessed against the proprietary criteria established by B Lab, an independent non-profit organization.

As a result of this assessment, in December 2015, we were designated as a Certified B Corporation.

As a result of this assessment, we were designated as a Certified B Corporation in December 2015.

In order to be designated as a Certified B Corporation, companies are required to take a comprehensive and objective assessment of their positive impact on society and the environment.

The assessment evaluates how a company’s operations and business model impacts its workers, customers, suppliers, community and the environment using a 200-point scale.

The assessment evaluates how a company’s operations and business model impact its workers, customers, suppliers, community and the environment using a 200-point scale.

While the assessment varies depending on a company’s size (number of employees), sector and location, representative indicators in the assessment include payment above a living wage, employee benefits, stakeholder engagement, supporting underserved suppliers and environmental benefits from a company’s products or services.

4 unchanged sentences

To maintain our certification, we are required to update our assessment and verify our updated score with B Lab every three years.

We were most recently recertified in February 2018 and are in the process of recertification with B Lab.

We were randomly selected for an onsite review, which is expected to occur in the second quarter of fiscal year 2021.

Our Certified B Corporation designation remains in good standing while we conduct the recertification process.

We were initially recertified in February 2018, began our latest reassessment process in 2021 and were most recently recertified in January 2022.

Our Certified B Corporation designation remains in good standing.

Public Benefit Corporation Status

In connection with our Certified B Corporation status and as a demonstration of our long-term commitment to our mission to bring ethically produced food to the table by coordinating a network of family farms to operate with a well-defined set of organic agricultural practices that includes the humane treatment of farm animals as a central tenet, we elected in October 2017 to be treated as a public benefit corporation under Delaware law.

Under Delaware law, a public benefit corporation is required to identify in its certificate of incorporation the public benefit or benefits it will promote and its directors have a duty to manage the affairs of the corporation in a manner that balances the pecuniary interests of the corporation’s stockholders, the best interests of those materially affected by the corporation’s conduct, and the specific public benefit or public benefits identified in the public benefit corporation’s certificate of incorporation.

In connection with our Certified B Corporation status and as a demonstration of our long-term commitment to our mission to bring ethical food to the table by coordinating a network of family farms to operate with a well-defined set of organic agricultural practices that includes the humane treatment of farm animals as a central tenet, we elected in October 2017 to be treated as a public benefit corporation under Delaware law.

Under Delaware law, a public benefit corporation is required to identify in its certificate of incorporation the public benefit or benefits it will promote, and its directors have a duty to manage the affairs of the corporation in a manner that balances the pecuniary interests of the corporation’s stockholders, the best interests of those materially affected by the corporation’s conduct, and the specific public benefit or benefits identified in the certificate of incorporation.

Public benefit corporations organized in Delaware are also required to assess their benefit performance internally and to disclose to stockholders at least biennially a report detailing their success in meeting their benefit objectives.

As provided in our certificate of incorporation, the public benefits that we promote, and pursuant to which we manage our company, are:

As provided in our amended and restated certificate of incorporation, the public benefits that we promote, and pursuant to which we manage our company, are:

(i) bringing ethically produced food to the table;

4 unchanged sentences

and (vi) being stewards of our animals, land, air and water, and being supportive of our community.

Environmental, Social and Governance

At Vital Farms, we are dedicated to creating long-term benefits through sustainable practices for our stockholders, crew members, farmers and suppliers, customers and consumers, communities and the environment.

We promote sustainable practices and place an emphasis on being conscious environmental stewards.

Our commitment to bringing ethical food to the table has enabled us to integrate sustainable practices throughout our business.

Our dedication to our stakeholders inspires us to continuously raise our standards and practices.

In 2021, we conducted an assessment to advance our environmental, social and governance, or ESG, strategy.

We engaged key stakeholders across our organization, including investors, crew members, and customers, to identify the ESG issues that are most impactful to our business and most important to them.

The process helped us to identify key risks and opportunities while maintaining our stakeholder-driven approach.

The identification of these risks and opportunities will help to guide our approach to aligning our business and our ESG priorities.

To ensure that ESG is prioritized throughout our business, the Nominating and Corporate Governance Committee of our Board of Directors has been tasked with oversight of our strategy, initiatives, policies, practices and reporting relating to ESG matters.

Additionally, we have adopted several policies to uphold our commitment to our values across our business and operations, including a Human Rights Policy, a Diversity, Equity and Inclusion, or DEI, Policy, a Health and Workplace Safety Policy and a Supplier Code of Conduct.

We are committed to building a people-first culture that embodies our values and understands the unique needs of our crew members.

We will continue to hold ourselves accountable to the important role we play in helping transition the world around us to a more diverse, equitable, and inclusive place.

In 2021, we appointed our first Head of DEI and established an internal Diversity Council to oversee our DEI approach and initiatives.

See the section titled “—Culture and Human Capital” below for further information about our commitment to a diverse crew and an inclusive work environment.

We acknowledge the potential threat that climate change may have on our business and are committed to taking action to mitigate our emissions and overall environmental risk.

In 2021, we began to track and analyze our greenhouse gas emissions to understand and mitigate our carbon footprint.

Additionally, we have engaged a third-party organization to identify and assess water risks relative to our business and operations.

We believe in providing transparent disclosure of our ESG efforts and communicating our progress with stakeholders.

To that end, we released our inaugural Sustainability Report in March 2022.

To learn more about our ESG efforts and our relevant ESG policies, please visit our investor relations website:

investors.vitalfarms.com.

Information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report or any of our other filings with the SEC.

We welcome our stakeholders’ feedback on our approach to ESG and can be contacted at investors@vitalfarms.com.

Demand for shell eggs fluctuates in response to seasonal factors.

11 unchanged sentences

Our commitment to prioritizing the long-term benefits of each of our stakeholders includes our talented and passionate crew members, employees who are invaluable to our business.

Following the Conscious Capitalism model, our business decisions consider the impact on all of our stakeholders, which we believe helps us to deliver a more sustainable and successful business.

Vital Farms is committed to creating and maintaining an environment that fosters collaboration, trust, and respect.

Furthermore, we endeavor to provide our crew members with the resources they need to be successful, along with culture-enhancing programs and professional development opportunities.

Life at Vital Farms

At Vital Farms, we believe in cultivating meaningful opportunities, from supporting economic well-being for small family farmers to fostering a collaborative and inspiring environment for our crew members across the country.

Prioritizing Conscious Capitalism, our business decisions consider the impact on all of our stakeholders, which we believe helps us to create a more sustainable and successful business.

Vital Farms is committed to fostering an environment that values collaboration, trust, and respect.

Furthermore, we endeavor to provide our crew members with the resources they need to be successful through culture-enhancing programs and professional development opportunities.

At Vital Farms, we believe in cultivating meaningful opportunities, from supporting the economic well-being of the family farmers in our network to fostering a collaborative and inspiring environment for our crew members across the country.

Crew Attraction, Development and Retention

Through a thoughtful and thorough screening process, we bring crew members into the business who we believe are aligned to our values and culture.

For the fiscal year ended December 27, 2020, we have received 13,733 employment applications and hired 113 new crew members.

Between February 14 and December 27, 2020, we surveyed new hires within their first week of employment to gather feedback on their orientation experience, and 94% of those surveyed indicated that they had a good orientation experience.

The Vital Farms’ crew member journey, including recruiting, onboarding and each step of the career experience, is guided by the philosophy of caring for our crew.

We believe in a culture of transparency and ownership, in which we communicate regularly to our crew members across departments and position levels through weekly team huddles at Egg Central Station, monthly all-company meetings and executive question and answer sessions.

In the fiscal year ended December 26, 2021, we received 21,651 direct employment applications and hired 171 new crew members.

In fiscal 2021, we surveyed new hires within their first week of employment to gather feedback on their orientation experience, and 96% of those surveyed indicated that they had a positive orientation experience.

The Vital Farms crew

member journey, including recruiting, onboarding and each step of the career experience, is guided by the philosophy of supporting a people-first culture.

We believe in enabling our crew members to grow both professionally and personally.

We cultivate leaders across every level of the business and are committed to building a culture that embodies our values and understands the unique needs of our crew members .

This commitment is evidenced by our Leadership Academy for all people managers at our Egg Central Station facility and our extensive online learning platform available to in-person and remote crew members, providing training options for both functional and interpersonal skills.

We believe in a culture of transparency and ownership.

We communicate regularly with our crew members across departments and position levels, including through weekly team huddles at Egg Central Station and monthly all-company meetings that include executive question-and-answer sessions.

These frequent touchpoints are focused on helping crew members feel connected to our mission and empowered to make informed decisions that drive our business forward.

At Egg Central Station, we maintain an “idea board” for crew members to share suggestions on how to make the workplace experience more engaging, and we have implemented over 30% of the suggestions shared.

In 2020, we spent time listening to our crew members to understand how they felt about returning to the office and learned that the majority appreciated the flexibility of working from home.

As a result, in 2021 we made the decision to support their preference and transitioned to a remote workforce for our crew members outside Egg Central Station.

We believe this transition has enabled us to attract top talent across the country and has had a positive impact on crew member retention and engagement.

We see examples of this daily, with everything from children popping in to say “hi” during team meetings to crew members appreciating the ability to take care of family needs when necessary.

We believe we have an extreme acceptance of our crew members’ needs and are pleased that we foster a culture where they can bring their full selves to work.

Workplace Health and Safety

Particularly in light of the ongoing COVID-19 pandemic, we have made the safety and well-being of our crew a top priority and have implemented a number of features to ensure our crew members feel safe, engaged and valued.

At Egg Central Station, these features include identification of opportunities to automate more physically challenging processes, offering subsidies to purchase slip-resistant and safety toe shoes and partnering with a local sports medicine practice for regular training of Egg Central Station crew members on ergonomics.

Additionally, we have implemented and continue to follow an internal COVID-19 protocol and preventative measures to protect the health and safety of our crew members, customers and communities.

What We Value

We have defined our company values as (1) Be Humble, (2) Act Like an Owner, (3) Lead with a Growth Mindset and (4) Practice Empathy.

We have defined our company values as (1) Be Humble, (2) Act Like an Owner, (3) Lead with a Growth Mindset, (4) Practice Empathy and (5) Compete to Win.

We strive to create a culture that reflects these important pillars of our business.

1 unchanged sentence

We recognize that we win and lose as a team, and we leave our egos at the door.

We orient crew members towards common priorities by communicating priorities throughout the organization.

We orient crew members towards common priorities by communicating these priorities throughout the organization.

Additionally, each quarter, crew members and their managers discuss professional development and set individual goals.

2 unchanged sentences

We know our crew plays a critical role in our success and want them to have a stake in the outcome that they help create.

We provide all crew members generous benefits in terms of competitive compensation, including hourly pay that is at least 25% above the living wage for an individual without children in the markets in which we operate (and at least 48% above minimum wage in Springfield, Missouri, for crew at Egg Central Station), paid parental leave, retirement contributions, health insurance and complementary Vital Farms products.

We provide our crew members with competitive compensation.

At our Egg Central Station facility in Springfield, Missouri, our hourly crew members are paid wages that are least 25% above the living wage for an individual without children in this market.

All full-time crew members are eligible for health insurance, paid parental leave, retirement contributions, equity grants and complementary Vital Farms products.

We Lead with a Growth Mindset:

We bring the drive to succeed, the desire to learn and the energy to keep raising the standards on everything we do.

We offer a wealth of learning opportunities to our crew through our online training platform and host a variety of live training sessions each month covering a range of topics including financial wellness, goal setting, g iving and receiving feedback, technological literacy and unconscious bias.

Since the launch of our online training platform in June 2020, crew members have completed 1,419 online courses.

We offer a wealth of learning opportunities to our crew through our online training platform and host a variety of live training sessions each month covering a range of topics, including financial wellness, goal setting, giving and receiving feedback, technological literacy and unconscious bias.

Since the launch of our online training platform in June 2020, crew members have completed over 2,800 online courses.

We Practice Empathy:

1 unchanged sentence

We believe a diverse, equitable and inclusive crew is crucial to our long-term success as a business and a priority for us as our values remain rooted in Conscious Capitalism.

As part of this commitment, in September 2020, we began a partnership with the National Diversity Council, a national non-profit organization committed to fostering an environment for organizations to grow in their knowledge of diversity and their ability to practice empathy for others.

We understand the importance of this work to our crew and plan to keep them informed of and engaged in this work in the months ahead.

As part of this commitment, we began a partnership in September 2020 with the National Diversity Council, or NDC, a national non-profit organization committed to fostering an environment for organizations to grow in their knowledge of diversity and their ability to practice empathy for others.

Our work with the NDC has involved a DEI audit, which reviewed our current and historic hiring practices and compensation and promotion data.

The audit was qualitative and quantitative, including an analysis of company data, a company-wide survey, focus groups and direct conversations with leaders and crew members.

Following the audit, the NDC found zero pay, promotion or performance inequities among our crew.

Under our newly hired Head of Diversity, Equity and Inclusion, together with an internal Diversity Council consisting of five crew-led DEI committees, we plan to implement a comprehensive DEI action plan that aligns with certain of the recommendations received from the NDC, including expanded training for our crew members on DEI topics and further partnerships with our community to bolster our diversity recruiting efforts and support for underrepresented communities.

We Compete to Win:

We are fierce competitors who like to win for all of our stakeholders, and we believe that prioritizing our stakeholders’ long-term viability will produce stronger outcomes, for everyone, over time.

Our business model is not a trade-off between purpose and profit;

rather, we believe that our purpose of improving the lives of people, animals and the planet through food has always been a critical driver of our growth.

Our Crew Members

As of December 26, 2021, we had approximately 288 full-time crew members, including 169 in operations, 42 in sales and marketing, 21 in finance and 39 in general and administrative functions, all of whom are located in the United States.

Of our full-time crew members, four are contract workers.

Of our full-time crew members, three are contract workers.

As of December 26, 2021, approximately 45% of our full-time crew members were women and approximately 17% were members of underrepresented minority groups.

None of our crew members is represented by a labor union.

We have never experienced a labor-related work stoppage, and we consider our relations with our crew members to be good.

Our Corporate Information

We were founded in 2007, originally incorporated in Texas in July 2009 and reincorporated in Delaware in June 2013, and we became a public benefit corporation in Delaware in October 2017.

Our principal executive offices are located at 3601 South Congress Avenue, Suite C100, Austin, Texas 78704, and our telephone number is (877) 455-3063.

Our website address is www.vitalfarms.com.

The SEC maintains a website that contains reports, proxy and information statements and other information regarding our filings at www.sec.gov.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business