Freshpet – A Rare CPG Growth Story
The stock has gone up 17x in past 5 years and management expects to grow revenues 4x in next 5 years.
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Growth is a scarce commodity in the public markets and it is even more scarce outside the technology sector. I often feel that financial twitter has a tech bias, it is filled with endless discussions on high growth SaaS and technology names with little coverage on non-tech high growth names (which are far and few to begin with). But there are companies like Freshpet (FRPT) that have been meeting the quintessential rule of 40 that every SaaS investor looks for, has a large TAM with barriers to entry that provides a moat to its business model, and yet FRPT has largely gone under the radar of many investors.
At the same time, I believe that brand as a source of competitive advantage can often be underappreciated (I would recommend listening to Invest like the best episode with Rohan Oza and Jason Karp). Most consumer brands do not have tech like moats (network effects, barriers to scale, switching cost, etc.), but can still deliver phenomenal investment returns (there are countless examples: Lululemon, Monster Beverages, Nike, etc.). FRPT is one such story in the making, a high growth/high quality brand with scale and consumer stickiness. FRPT has been a 17 bagger in the past five years (from ~$9 to $152), while rest of the consumer staples index has delivered a total return of ~35% over the same period.
Please visit https://bmmideas.com/2021/07/24/freshpet-a-rare-cpg-growth-story/ to read more.
Hello there,
I hope this communique finds you in a moment of stillness. Have huge respect for your work.
We’ve just opened the first door of something we’ve been quietly crafting for years—
A work not meant for markets, but for reflection and memory.
Not designed to perform, but to endure.
It’s called The Silent Treasury.
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Where trust, patience, and self-stewardship are treated as capital—more rare, perhaps, than liquidity itself.
This first piece speaks to a quiet truth we’ve long sat with:
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And if it speaks to something you’ve always known but rarely seen expressed,
then perhaps this work belongs in your world.
The publication link is enclosed, should you wish to open it.
https://helloin.substack.com/p/built-to-be-left?r=5i8pez
Warmly,
The Silent Treasury
A vault where wisdom echoes in stillness, and eternity breathes.