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The Spoon

Daily news and analysis about the food tech revolution

indoor farming

Kalera Picks Denver for Its Next Commercial-Scale Vertical Farming Facility

Kalera continues its westward expansion. This week, the Orlando, Fla.-based indoor vertical farming company announced it will open its newest commercial-scale facility in Denver, Colo. in 2021. 

This will be Kalera’s fifth facility for commercial-scale vertical farms growing leafy greens. The company already operates two facilities in Orlando and is in the midst of constructing farms in Atlanta and Houston, both slated to open in early 2021. 

When we caught up with Kalera in 2019, the company had just broken ground on its second Orlando facility and was best known for serving hydroponically grown greens to the hospitality industry, including the Orlando World Center Marriott resort. One pandemic and countless restaurant shutdowns later, and Kalera had to pivot to keep business going. Earlier in 2020, the company struck a deal with Publix to sell its greens in the grocery mega-retailer’s supermarkets. The company now provides greens to both the food retail and hospitality sectors, a strategy it will take to Denver once its facility opens there.

Kalera’s farms use IoT, process automation, and cleanroom technology to grow leafy greens in a completely controlled environment without the use of pesticides. For now, the company is focused on leafy greens, which require less space to grow than other types of produce, making them ideal for the vertical farming format.

Kalera said in today’s press release it plans to open additional facilities around the U.S. as well as expand internationally.

Its rapid expansion comes at a time when indoor farming, whether vertical or another method, is attracting significant investment dollars. InFarm, which puts its small-scale farms inside the grocery store, raised $170 million in September, and Finnish startup iFarm raised $4 million in August. Also in August, a new company, called Unfold, raised $30 million to build out operations in the U.S.

Kalera’s Denver facility will open later in 2021 and, according to the company, create 60 new jobs in the area.

Revol Greens Raises $68M to Build Out High-Tech Greenhouses in the U.S.

Revol Greens announced today it has closed a $68 million funding round for its network of high-tech greenhouses the company says will eventually supply 33 million pounds of greens annually to the U.S. The round was led by Equilibrium Capital. According to a press release sent to The Spoon, this brings Revol’s total funding to $215 million.

The Minnesota-based company says it will use the new investment to launch its third facility, which is a 20-acre farm in Texas that could expand to 80 acres in the future. 

Revol is part of a new wave of companies marrying greenhouse growing with technology systems that allow food producers to grow crops year-round, in totally controlled environments. Its system uses closed-loop hydroponics and, when necessary, supplements natural sunlight with LEDs. It also collects data on plant growth to ensure crops have the correct levels of water and nutrients they need to grow.

As they’re based in Minnesota, the folks behind Revol are no strangers to the kind of extreme weather that makes growing crops outdoors impossible for parts of the year. But extreme weather is also a consequence of climate change, whether it’s fire, drought, or insect outbreaks, and it is becoming more widespread. In traditional agriculture, that could mean an increase in pests, flooding or heavy downpours that threaten crop yields, and increases in carbon dioxide that decrease the quality of products. 

Revol is not alone in merging the greenhouse with high tech to provide an alternative to traditional agriculture. AppHarvest is currently building out a massive greenhouse facility in Appalachia. The company recently raised $28 million. Iron Ox, which raised $20 million earlier this month, is bringing robotics to the greenhouse, and a company called Lufa has taken the greenhouse concept to rooftops in cities.

Getting greens closer to cities is also one of Revol’s goals. “High-tech greenhouses give us the ability to return to regional food systems with farms that produce our food near our communities,” David Chen, CEO of Equilibrium, said in today’s press release. “Regionalism gives us resiliency, food security, and addresses the threat of climate change to our food system. Greenhouses are the tech disruptor in a 10,000year-old agriculture sector.”

Revol CEO Mark Schulze added that by the end of 2021, the company will be “the world’s largest indoor lettuce producer.” 

The company’s first greenhouse launched in 2018 in its hometown of Owatonna, Minn., followed by a second facility in Tehachapi, Calif., which Revol is in the midst of building out.

Farm.One Installs Its Mini-Vertical Farm at Whole Foods in Manhattan

NYC-based vertical farming company Farm.One announced today it has launched a mini-farm inside the newly opened Whole Foods Market in Manhattan West. 

Farm.One custom designed the farm for this location. From a visual standpoint, that means the design matches the Whole Foods’ look, while the physical footprint — 36 square feet — does not intrude on shopping space. The farm can hold 150 plants, which it grows using artificial lighting and the hydroponic method. 

It being a mini-farm, there isn’t a ton of variety in the crops grown. In fact, for now, the mini-farm grows only basil, which will be used for in-store pizzas and cocktails. Which sounds about right for a Whole Foods in Manhattan. Today’s press release says the farm will grow about eight pounds of basil each month. Whole Foods’ staff will harvest the plants and, thanks to the accompanying software platform, require little supervision from Farm.One engineers.

Farm.One operates other custom locations at EATALY in Manhattan’s Flatiron neighborhood and at the Project Farmhouse event space. The company will also unveil a new farm in a yet-to-be-named plant-based restaurant in October. Thus far, the company has raised nearly $500,000 in funding.

While growing cocktail garnishes won’t exactly end world hunger, Farm.One’s continued growth across Manhattan shows how varied the uses for vertical farming are getting. Not so long ago, the concept was the territory of large-scale operations in warehouse-style buildings on the outskirts of cities. Now, vertical farms have made their way into schools, restaurants, grocery stores, grocery distribution centers, and, increasingly, consumers’ homes. The more use cases we can see in action, the better we can understand where vertical farming is most valuable as a component of our future food system.

Farm.One has plans to build other mini-farms as well as flagship locations in other major U.S. cities as well as expand internationally over the next couple of years.

Iron Ox Raises $20M Series B for More Robotic Greenhouses

Ag tech company Iron Ox, best known for its greenhouses powered by robotics and AI, announced this week it has raised a $20 million Series B round. The round was led by Pathbreak Ventures with participation from Amplify Partners, At One Ventures, Crosslink Capital, , ENIAC Ventures, R7 Partners, and Tuesday Ventures. Iron Ox’s total funding to-date including this round is $45 million.   

In addition to the funding news, Iron Ox also announced a new farming facility in California, this one in Gilroy. Like the company’s first greenhouse, which is located in San Carlos and opened in 2018, the Gilroy facility will use a hydroponic grow system manned not by humans but by a large mobile machine equipped with robotic grippers. The machine plants, harvests, and moves the heavy grow trays around as needed, while machine learning and computer vision systems monitor plant growth. Humans aren’t completely out of the equation, though: the system still needs them to prune and inspect plants. 

Unlike many other indoor farming operations, Iron Ox does not use LED lights, but instead relies on good ol’ fashioned sunlight for plant growth. For now, the farms grow the standard mixture of leafy greens and herbs. The new Gilroy farm will sell these greens to Whole Foods and Bianchinis markets in California. 

Some of the benefits high-tech greenhouses like those of Iron Ox bring include more efficient use of space and the ability to serve customers (the ones that can afford Whole Foods, at least) locally. Iron Ox also says it uses less water than traditional farming as well as less energy. 

The company joins AppHarvest, Lufa Farms, and Gotham Greens in making recent headlines around new developments and investments in large-scale, high-tech greenhouse farming.

Lufa Farms Unveils the ‘World’s Largest Rooftop Greenhouse’

Lufa Farms hit a noteworthy milestone recently. The Montreal, Quebec-based agtech company opened its fourth and largest indoor farm, and is “the world’s largest rooftop farm” (h/t Modern Farmer).

For this new farm, which is located in the Saint-Laurent borough of Montreal, Lufa Farms says it has has doubled its production capacity for fresh vegetables, adding 163,800 square feet for a total of 300,000 square feet of growing space. 

The new facility started full production early in August of this year and, according to the official press release that came out at the end of last week, now yields 25,000 pounds of produce each week. The greenhouse grows 10 varieties of tomato and 3 varieties of eggplant.

Since its inception in 2009, Lufa has been fine-tuning its process around farming on commercial rooftops. That means it doesn’t use new any new farmland in order to grow crops, which is an important point in any discussion about sustainable farming. The greenhouses use an irrigation system that recirculates water and what it calls “the passive energy savings of simply being on an urban rooftop.” 

That urban setting also means produce is closer to the consumers buying it. To that end, Lufa has a subscription service that provides customers with a weekly basket of produce in addition to an online farmer’s market where the company sells its crops as well as food items from partner food producers. Users can either have their goods delivered to their own doorstep for a $5 fee or designate one of Lufa’s pickup points nearby. 

More and more urban greenhouses are cropping up as the food industry looks to supplement — though not necessarily replace — more traditional forms of agriculture. Gotham Greens is another notable player in this space, having recently opened its latest high-tech greenhouse, a 100,000 square-foot space in Baltimore earlier this year. Element farms uses the greenhouse format to grow spinach, and in Morehead, KY, AppHarvest is building out a massive facility that will provide produce and employment to the surrounding Appalachia area.

For its part, Lufa said it’s seen a surge in popularity for its own greens thanks to the pandemic. In response, Lufa launched a seven-day service, tripled its home delivery capacity, and added new local markets as well as team members. No one is sure what direction the pandemic will next turn in, though given its recent developments, Lufa seems well-poised to weather the uncertainty.

Agtech Startup Nordetect Wins €10,000 Prize for Portable Nutrient Sensor

There are plenty of reasons food producers are considering indoor agriculture these days, including the potential for better crops and yields thanks to tech integrations and the ability to keep farm workers safer (ie, not laboring in the thick of wildfire smoke). However, to make indoor farming as efficient as possible, and thereby cut down on food waste, more precision around plant nutrients, water, and other elements is needed.

Denmark-based startup Nordetect is one such company tackling this challenge. The precision-agriculture-focused company just nabbed the top spot (and €10,000) of agtech company Priva’s recent Horti Heroes challenge, which showcased companies innovating in the horticulture space.

Nordetect, which is also a part of the SOSV portfolio, won the challenge for its portable device that measures nutrients in soil, water, and plant tissue so growers can more precisely use fertilizer in crops and get better yields and less waste.

On its website, Nordetect says this nanosensor can be used on anything from leaf samples to soil to manure. The system also integrates with any existing software the farm might be using, and a built in GPS keeps track of where each sample is located in the field or farm. A major differentiator Nordetect offers is its ability to measure nutrients within minutes, as opposed to the traditional process that can take weeks.

Speaking in today’s press release, Nordetect CEO Keenan Pinto said the company’s target market was high-value crop space — that is, areas that grow crops like leafy greens, tomatoes, and cucumbers. “These are crops that have a nutrient requirement change between their vegetative and generative phases… and if you can get the fertilization correct, you can also achieve a significantly higher flower rate and yield,“ he said.

Many indoor farms, whether tech-enabled greenhouses or vertical farms, now grow those crops. At the same time, the number of these indoor farming facilities keeps rising and their locations include everywhere from isolated warehouses to grocery store parking lots to food desserts. 

Priva is something of a heavyweight in the world of indoor farming, which means its awarding of the prize to Nordetect and subsequent partnership with the company will lead to further technological innovation around precision agriculture inside the above farming locations.  

iFarm Raises $4M for Its Automated Vertical Farming System

Finnish vertical farming company iFarm announced today it has raised $4 million for its automated indoor farming operation, according to a press release sent to The Spoon. The round was led by existing investor Gagarin Capital with participation from Matrix Capital, Impulse VC, IMI.VC, and several angel investors.

iFarm makes a turnkey vertical farming solution that can be deployed in a number of different-sized settings, from large warehouse farms to shelf-like grow modules in supermarkets. The company offers four different automated technologies: one for growing a variety of crops on a vertical farm; one for growing strawberries on a vertical farm; iFarm Cropper, a standalone module for growing greens; and iFarm Growtune, a SaaS platform for managing the vertical farms.

Using machine learning and computer vision, the iFarm Growtune tool, which powers the other technologies mentioned above, can detect a plant’s weight as well as any growth deviations or pathologies. It also prompts farm staff when it is time to adjust the “climate” settings inside the vertical farm.

According to today’s press release, iFarm has over 50 ongoing projects with clients in both Europe and the Middle East, including an industrial vertical farm in its homeland of Finland that’s due to launch sometime in 2020.

Vertical farming has seen a steady stream of developments over the last six months, from Farmshelf releasing its first consumer-facing grow system to SinGrow’s proprietary strawberries to Wilder Fields building an industrial vertical farm inside an abandoned Target shop. All of which is to say, vertical farming is no longer just a large-scale endeavor done by a few companies, but rather, a grow method appearing in many shapes and sizes, whether in the warehouse or the grocery store.

Because of the variety iFarm offers in terms of automated grow technologies, the company seems poised to serve multiple markets as it further develops its system. The company says it will use the new funds to further develop iFarm Growtune and quadruple the number of plants available to grow via the system. It will also further build out the automation aspect of its system and experiment with growing strawberries, cherry tomatoes, sweet peppers, radishes, and other crops.

Publix Has Ambitious Plans to Get More Hydroponically Grown Greens in Its Stores

Back in 2019, we predicted that hydroponically grown greens would soon become a mainstay of grocery stores in the U.S. We did not predict that a global health crisis would disrupt the supply chain and make consumers hyper-aware of where their food comes from and what goes into growing it, but that’s exactly what happened. The result? Hydroponic farming’s march into the grocery store has been accelerated.

Perhaps no one is pursuing this shift more seriously than grocery retail chain Publix, whose Greenwise brand has partnered with Brick Street Farms to locate a shipping-container-turned vertical farm at one of Greenwise’s brick-and-mortar markets in Florida. 

The 40-foot shipping container (see image above) sits outside the Greenwise market in Lakeland, Florida. Like other vertical farming operations, it uses hydroponics to grow leafy greens without the use of soil or pesticides. Greens are packaged onsite and travel mere feet to reach the produce section of the store.

Speaking on the phone this week, Curt Epperson, Business Development Director of Produce and Floral for Publix, and Albert Gottuso, Category Manager for Produce at Publix, highlighted the advantage of this method over traditional means of getting produce in the store. Most of Publix’ conventional leafy greens are grown in California and have to travel thousand of miles before they reach store shelves. Besides the obvious lower carbon footprint, growing greens onsite also uses less water than traditional farming and means fresher greens on store shelves compared to those that are harvested shipped, and hydrated before they ever reach the produce section.

But hydroponic greens were on the Publix agenda long before the deal with Brick Street Farms. During our call, Gottuso said the company has maintained relationships for years with local hydroponic farmers to sell greens in its stores. For instance, Livingston, TN-based Tanimura & Antle sells its butter lettuce at Publix stores in that state.

“This hydroponic product out of nowhere became our best seller for leafy lettuce,” he said. That in turn led the chain to consider how it could supply hydroponically grown greens to more of its locations. 

Multiple efforts are currently underway. Earlier in 2020, Publix partnered with Vertical Roots on a mobile vertical farm customers could interact with. In March, the chain teamed up with large-scale vertical farming company Kalera.

All of these efforts fit into Publix overall hydroponic program, which Epperson says is still testing different techniques in terms of getting indoor greens to local stores. 

Gottuso added that the chain is expanding this hydroponic program so that every state has a grower with an indoor farm supporting local stores in its area. “Our goal is that every store that we service has a local hydroponic program that can offer an assortment of variety of blends,” he said. 

This push towards local, more sustainably grown greens is happening across the grocery sector. Kroger has a partnership with Berlin-based InFarm, which puts its vertical farming pods in the store’s produce section. And just this week, San Francisco-based Plenty announced a partnership with Albertsons to sell its greens (which are grown offsite in a warehouse) at that retailer’s store.  

Publix doesn’t plan to stop at leafy greens. Though they are by far the most popular product to grow hydroponically, Epperson suggests there is potential for cucumbers, tomatoes, and peppers, among other produce types. 

As to whether or not hydroponic farming could ever replace traditional farming, at least in terms of leafy greens, Epperson noted that the jury is still out. “It’s very difficult to get the yield you would get in conventional growing,” he said. Calling it “blue sky” thinking, he pointed to a day when Publix might have vertical farms located next to all of its distribution centers. And that idea isn’t exactly unattainable — Square Roots is already doing something similar with Gordon Food Service. 

The introduction of technology to the greenhouse could also play a big role in making hydroponics more widespread in the grocery sector. Gottuso says technology allows companies to build greenhouses in areas where they historically haven’t been (like the Southeast). These large greenhouses also provide the scale needed to supply the shelves of a major grocery retailer because they are “adept to growing larger amounts of produce.”

If Publix’ ambitions around hydroponics can do likewise and scale effectively, we can expect many more locally grown greens — and other produce types — to hit store shelves in near future.

Sensei Ag Uses AI Platform and Hydroponic Technology to Grow Food

As the world’s population inches towards its estimated 10 billion people by 2050, finding more, not to mention more sustainable, ways to feed people becomes more and more important. High-tech, indoor agriculture is one solution getting a lot of attention lately, and recently, a new company joined the fast-growing sector. Sensei Ag is the brainchild of Oracle’s Larry Ellison and scientist Dr. David Agus, and the company’s goal is to grow more greens using hydroponics and AI.

Based on the small Hawaiian island of Lāna’i, Sensei Ag has built a 100,000 sq. ft. hydroponic pilot greenhouse that is expected to grow 1 million pounds of food per year. I spoke with Sensei Ag CEO Sonia Lo by phone this week, and she described the company as an integrated solution to indoor farming that uses the best practices in computer vision, germination, and seeding to optimize indoor growing.

I asked Lo about how the company incorporates AI into their greenhouses. She said that their AI platform will act as a data engine that harnesses global grower knowledge, and will create an algorithm for the best-practices in indoor growing. She did not go into the specifics of their platform, but did mention that this would be made available to other growers, and it would be embedded into each part of their agricultural system. Sensei Ag also uses advanced cameras within their greenhouses to identify pests, pathogens, plant health, and uneven growth in crops. The company’s goal is to enable platforms within the greenhouse to make decisions on growing food autonomous of human intervention.

The COVID-19 pandemic, climate change, and a growing population has forced us to consider the possibility of global food insecurity. In response, companies like Phytoponics, Element Farms, and Gotham Greens all operate indoor farms that use hydroponic techniques to grow leafy greens. Meanwhile, companies like Verdeat, Rise Gardens, and Seedo offer at-home vertical farming products that allow you to grow leafy greens in your living room. 

Sensei Ag grows cherry tomatoes, basil, and butter lettuce, and Lo said that they will definitely be expanding the crops they grow. They are currently scouting for a location in California or Nevada for their flagship farm, which will be used as a template for rolling out future farms. 

AppHarvest Raises $28M as it Builds Out a Massive Greenhouse in Appalachia

Ag tech company, AppHarvest, announced yesterday that it has raised a $28 million Series C round of funding. The round was led by J.D. Vance’s Narya Capital, with participation from Lupa Systems and Rise of the Rest among others. This brings the total amount raised by AppHarvest to $150 million.

AppHarvest is in the midst of building out the worlds largest greenhouse facility in Morehead, KY. When completed, it will be a 2.76 million-square foot indoor faming facility that will use hydroponics and vertical farming to grow 45 million pound of fresh produce a year. The greenhouse is scheduled to open this fall and will employ roughly 300 people.

AppHarvest’s facility is within a day’s drive of 70 percent of the U.S. population, so it will be able to provide fresh produce to grocery stores in Appalachia, as well as surrounding states.

In June of this year, AppHarvest partnered with the State of Kentucky as well as the Dutch government and several universities. These partnerships were designed to create a series of research programs and develop the greenhouse as a “center of excellence” for agtech innovation.

AppHarvest isn’t the only indoor farming startup partnering with a local government. AeroFarms and the World Economic Forum partnered with the City of Jersey City and as my colleague, Jenn Marston wrote last week:

This is the first partnership between a city municipality and a vertical farming company in the U.S. Through it, AeroFarms will build 10 vertical farms in senior centers, schools, public housing, and municipal buildings around Jersey City. Collectively, the farms are expected to produce 19,000 pounds of vegetables annually, according to AeroFarms. Greens will be free of charge to residents, and the initiative also includes healthy eating workshops and quarterly health screenings.

Hopefully projects like AppHarvest and AeroFarms can use their tech platforms to help create a more equitable food system for everyone.

What’s Next for Vertical Farming? Proprietary Strawberries and Other Non-Leafy Produce

Agtech investment firm AgFunder announced this week that it has added agtech company SinGrow to its investment portfolio for an undisclosed sum. AgFunder founding partner Michael Dean wrote in a post that SinGrow “isn’t just looking to be another vertical farmer selling leafy greens.” Instead, the company uses a combination of plant biology, hydroponic vertical farming, and other technologies to grow what it hopes will be a range of produce types, starting with its own novel varieties of strawberries. 

As Dean lays out in his post, SinGrow has developed a vertical farming solution that addresses every stage of a plant’s agricultural journey, from breeding to harvesting. (Most vertical farm solutions do not address plant breeding.) It breeds strawberry varieties adapted to humid weather, and has two proprietary strawberry cultivators specifically developed for Singapore’s tropical climate. Both of those things mean SinGrow’s system uses less energy because it needs less air conditioning pumped in to cool the facility and reach the ideal growing temperature for the strawberries.

The company also grows the plants on a strawberry-specific rack it has developed, where the plants grow outward instead of upward. That in turn allows a harvesting robot to to drive alongside the rack and simply snip the strawberries off rather than pick them. 

Why strawberries? Well, first, they’ve been a hobby of SinGrow cofounder Bao Shengjie, who has been cross-breeding strawberry seeds since 2016. That particular fruit was of interest to the founders because it’s difficult to actually get in Singapore, at least at an affordable price point. SinGrow lists expense, poor taste, and an unstable supply chain as reasons strawberries are difficult for the average consumer to buy in that region.

The company has this neat explainer video that delves more into the specifics on how it grows its strawberries.

Singapore also relies on imports for about 90 percent of its foods, hence the Singaporean government’s 30x30 initiative launched in response to the COVID-19 pandemic: Singapore should have 30 percent of its foods produced domestically by 2030. 

On that note, SinGrow hopes to soon move beyond strawberries to grow grapes, saffron, and other crops, according to Dean’s post.

A (very small) handful of companies are also exploring what else they can grow beyond the leafy green. UK-based Phytoponics is trialing a system for plants like cucumbers, tomatoes, and peppers. And a while back, San Francisco startup Plenty said it wanted to grow “exotic” produce on its farm Tigris. To date, though, the company’s website still offers only leafy green varieties.

If a company like SinGrow can show others how to use biology, technology, and farming to grow a greater assortment of produce items, it could change vertical farming’s role in our system from an add-on method to a primary source for getting certain fruits and vegetables. It’s early days yet, but the technology looks to be moving in that direction. 

Farmshelf Unveils Its First Consumer-facing Vertical Farming Unit

Farmshelf, the vertical farming company best known for outfitting restaurants with its high-tech indoor farms, today unveiled its first-ever consumer-facing product, according to a company press release.

Dubbed Farmshelf Home, the new product is similar to the company’s commercial model championed by high-profile chefs like José Andrés. It’s roughly the size of a bookcase and uses a combination of sensors, cameras, software, and custom LEDs to automatically deliver the correct levels of water, light, and nutrients to each plant growing in the farm.

For the average consumer, that means once the farm arrives, it’s a matter of plugging it into a wall, connecting it to wifi, setting seeds in pods, then remotely monitoring the hydroponic system from a corresponding smartphone app.

Farmshelf Home is available to pre-order through the company’s website. Though it ain’t cheap: the company lists the “exclusive pre-order price” at $4,950, while the standard retail price will be set at $6,450. There is a $100 deposit (applied to the price and also refundable) as well as a monthly $35 fee that covers seed pods, nutrients, and access to the Farmshelf software for monitoring plants. At the moment, those interested only need to hand over the deposit to sign up for a pre-order. According to the fine print, there is no firm delivery date yet.

Three months ago, I would have called the high price point a deterrent for most people. Certainly, the average American family won’t be purchasing a Farmshelf anytime soon.

But those in higher income brackets may. A global pandemic has revealed just how out of whack our food supply chain is and what happens when people panic shop in droves and grocery stores can’t keep up, factors that might justify the price point for some folks. The Spoon’s Publisher Michael Wolf pointed out recently that “As the coronavirus has forced all of us to think more about our food supply, some consumers have gone beyond just buying a little extra food to store away. Now they are thinking about how we could ensure access to food independent of breakdowns in the system.”

Now we have to see whether consumers will pay thousands of dollars to ensure that independence. More at-home vertical farming companies were coming to market even before the pandemic, with large appliance makers like Samsung, LG, and Miele announcing high-tech gardens meant for your kitchen or living room. They range in price from the hundreds to the thousands, though not quite as high as Farmshelf.

Currently, Farmshelf is in a number of restaurants and hotels, including NYC chain Tender Greens, Marriott Marquis Times Square, and the Condé Nast offices. Angel network she1K syndicated an early-stage investment in the company at the end of last year.