Hart Dairy
Hart Dairy | Industrial | 80,000 SqFt
Marketing description
Northmarq is pleased to present this build-to-suit opportunity on behalf of Hart Dairy Creamery Corporation, a vertically integrated A2 dairy producer and one of the most differentiated operators in the Premium Specialty Milk sector.
Operating four farms across 2,000 acres in South Georgia, Hart Dairy is nationally recognized for animal welfare and sustainability leadership—becoming the first U.S. dairy to earn Certified Humane status and one of only three farms endorsed by the ASPCA. Its 100% A2/A2 genetics herd and commitment to humane, pasture-based operations put the company in a unique position to disrupt the fast-growing $12 billion Specialty Milk category, expanding at 25% CAGR.
Hart Dairy is led by a seasoned management team with over 60 years of combined experience across dairy operations, food manufacturing, capital markets, and international business development. Under the leadership of Founder & CEO Tim Connell, the company has evolved from concept to a fully integrated, A2-dedicated dairy enterprise with nationally recognized sustainability practices and a proven track record of execution. Management has successfully secured institutional financing, structured sovereign-backed export contracts, and built the operational platform required to scale a premium dairy brand.
The Company now seeks partners to develop a $39 million, 80,000 sqft, state-of-the-art Extended Shelf Life (ESL) processing facility located approximately 10 miles from its farm operations. One of only a handful of U.S. plants with this advanced technology, the new facility will deliver two major competitive advantages:
• Extended Shelf Life (up to 90 days): Significantly expands distribution geography, optimizes logistics economics, and unlocks global export markets—validated by international commitments already secured.
• Enhanced Profitability: Vertical integration and ESL efficiencies are projected to increase EBITDA margins to ~35%, materially outperforming the industry benchmark of ~22%.
This development represents a unique opportunity to partner with a mission-driven, high-growth dairy platform positioned at the intersection of premium nutrition, sustainable agriculture, and advanced processing technology.
Investment highlights
$39m State-of-the-Art ESL Processing Facility | Will be one of only a handful of Extended Shelf Life (ESL) processing facilities in the USA. ESL improves shelf life from 14-21 days to 90 days, which dramatically expands distribution radius and export opportunities.
A2 Milk Genetics Advantage | Hart Dairy’s 100% A2/A2 genetics herd produces a naturally easier-to-digest milk, delivering true product differentiation in the fast-growing premium dairy segment. Because A2 traits are genetic, Hart Dairy’s herd creates a built-in competitive moat. Replicating this at scale requires years of breeding, screening, and herd development.
Pre-Committed Offtake & Strategic Partnerships | Hart Dairy has already validated market demand for its expanded capacity, securing commitments from The a2 Milk Company, the Government of Indonesia, and Dutch Interfoods, with Cargill prepared to partner on farm and herd acquisitions. These commitments demonstrate strong, immediate demand for the new ESL facility.
Strong Projected Growth with Lease Security Backstop | Beginning production at the new ESL facility in 2027, Hart Dairy projects revenue to grow to approximately $160 million and EBITDA to reach about $43 million by 2029. Hart will backstop the lease by providing up to three years of rent in the form of a letter of credit until EBITDA sufficiently supports the rent.
Compelling Premium Consumer Tailwinds | Positioned in the $12B Specialty Milk category, expanding at 25% CAGR—one of the fastest-growing segments in consumer-packaged goods.
Vertically Integrated, High-Control Operating Model | Four farms across 2,000 acres allow full control of genetics, herd health, milk quality, and supply reliability. This vertical integration drives stable margins, traceability, and premium brand trust.
Strategic Location | The facility's Southeast U.S. footprint provides access to a 550-mile defensible distribution radius and its proximity to its farms ensures operational efficiency and quality control.
Bonus Depreciation | The Hart Dairy Plant will qualify as a “Qualified Production Property” (QPP) under the framework established in the OBBBA, which could allow certain investors who are interested in a joint venture structure to benefit from 100% Depreciation in Year 1.
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