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Daily news and analysis about the food tech revolution

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High-End Strawberry Grower Oishii to Launch ‘Everyday Berry’ via Vertical Farming

Controlled environment agriculture (CEA) company Oishii is best known at this point for its high-end, vertically grown strawberries that cost a cool $50 for an eight-pack. That makes the New Jersey-based company’s wares pretty inaccessible for many consumers — until now. Oishii explained this week that it will be launching an “everyday berry” in the future.

Strawberries are by many accounts the next “it” crop for CEA. As Oishii explained to Vertical Farm Daily, one of the issues with traditional strawberry production is that about 90 percent of all strawberries grown in the U.S. have to be shipped from California. To ensure safer transportation, the fruits are engineered to be resilient at the expense of quality and taste. 

Oishii’s Omakase Berry, which the company grows in its vertical farm facility in New Jersey, is in many ways the antithesis of the traditionally grown strawberry. Omakase Berries typically only grow for a short part of the year in a very specific region of Japan, and they are known for their sweetness and strong aromas. They are also, as noted above, a very premium produce item and, in the case of Oishii, a very expensive one.

But now, Oishii is using its recently raised $50 million funding round to expand R&D and commercialize an everyday berry, with the goal of becoming one of the largest strawberry growers in the world. Oishii will apply the learnings and proprietary technology used to grow its Omakase Berry towards other strawberries as well as other crops, such as tomatoes and peppers.

Strawberries are one of the dirtier crops when it comes to pesticides, and more than one CEA company is now attempting to grow the fruit indoors at scale. Plenty announced a partnership with berry grower Driscoll’s last year. Meanwhile, a Singapore-based company called SinGrow is growing strawberries indoors to make the fruit more widely available in the city state without relying on imports.

Oishii said this week it will focus for now on local markets in northern New Jersey and New York, but also plans to build more farms in other cities and even countries. 

Oishii Raises $50M to Raise More High-End, Vertically Grown Strawberries

Vertical farming company Oishii has raised $50 million in Series A funding, according to a press release sent to The Spoon today. The round was led by SPARX Group’s Mirai Creation Fund II, with participation from Sony Innovation Fund, PKSHA Technology, Social Starts, and several angel investors. It brings Oishii’s total funding to date to $55 million.

With the new funds, Oishii will expand its flagship vertical farm, which is located just outside of New York City. Unlike the majority of companies currently in the vertical farming space, Oishii does does not grow the standard leafy greens and herbs. Instead, the company grows strawberries — specifically, the Omakase variety.

The Omakase Berry typically only grows for a short part of the year in a very specific region of Japan. Oishii founder and CEO Hiroki Koga decided, when building out his vertical farm, to attempt to replicate the elements of a perfect day in Japan (e.g., humidity levels, light) inside a controlled-environment farm in the U.S. The realist is an Omakase Berry that can grow 365 days per year.

The Oishii grow system combines the automation technologies found on many vertical farms today with traditional strawberry cultivation methods developed in Japan specifically for the Omakase berry.

Oishii first introduced its berries in 2018; they are currently available for pickup and delivery in New York City. As produce goes, these products aren’t cheap. A pack of eight strawberries goes for $50, not including delivery fees or tip. Berries are also available at select retailers around New York City, most of them high-end speciality food shops.

Given its price point and limited availability, Oishii’s Omakase Berry is probably not destined to reach huge numbers of consumers — the goal of many other controlled ag farming operations. Instead, the mission seems to be about providing U.S.-based consumers with the experience of tasting something they would ordinarily only be able to get in one tiny region at one time of year.

Oishii said that this week’s funding will go also go towards developing other varieties of strawberries as well as growing other types of produce, such as tomatoes.

The company joins SinGrow, Plenty, and others in moving vertical farming beyond leafy greens. 

SKS 2020: Why Singapore Is Fast-Becoming Food Tech’s New Superpower

That Singapore is a fast-rising superpower in food tech is something that’s become apparent over the last several months. And yesterday, during a SKS 2020 panel on the Asian food tech landscape, the city-state came up in conversation again as an enormously important location to watch when it comes to food innovation and investment.

“If I had to place my bet I would place it on Singapore,” said Michal Klar, an angel investor who also writes the Future Food Now newsletter. Joining him on the panel were Winnie Leung of Bits x Bites and Spoon Publisher Mike Wolf, and together, the group unpacked some of the reasons why so much food tech innovation is coming out of Singapore right now.

Arguably the biggest driver is that, at the moment, Singapore imports 90 percent of its food. That’s a precarious position to be in during the best of times, never mind during a pandemic that’s disrupted the global food supply chain. In response, the Singapore government launched a $21 million grant fund this year as part of its 30×30 initiative, which aims to have 30 percent of Singapore’s food produced locally by 2030. 

At the same time, that reliance on imports for the majority of its foods may actually help Singapore innovate on food tech faster for the short term. Since so much of the city-state’s food comes from outside its own borders, Singapore lacks some of the constraints other countries face when it comes to getting pushback by established players.

Alternative protein is a good example. Here in the U.S., both plant- and cell-based meat companies must go toe-to-toe with Big Meat producers and lobbyists over labeling of their products, shelf placement, and other issues. By contrast, Klar suggested that because Singapore’s meat supply is imported there’s nobody to push back on new developments and regulations happening in the city-state around alternative forms of meat. That, Klar reasoned, is one of the reasons Singapore is home to Asia’s best-funded cell-base meat startup, Shiok Meats, as well as a number of other up and coming players.  

Indoor agriculture/vertical farming is another area that could potentially thrive because of a lack of existing incumbents. Last year, local farms produced just 14 percent of leafy vegetables consumed by Singaporeans, so there’s little in the way of traditional agriculture to disrupt. At SKS, Leung noted that Singapore’s “highly urbanized” environment makes it an ideal setting for high-tech innovations in indoor farming. We’ve seen this in recent months with companies like SinGrow, which is growing a proprietary breed of strawberries in its vertical farm, and ag tech accelerators like GROW. Leung also flagged aquaculture as a sector to watch in Singapore.

Both Klar and Leung also pointed to Singapore’s regulatory environment as a reason for the city-states speedy growth in food tech innovation. There is only one agency in Singapore that regulates foods, said Klar. In other words, when companies prepare for the phase in which they must get government approval for their products, there’s no doubt or confusion as to who they must go to. This could speed up the process of regulatory approval, which in turn would mean a faster time to market for many companies. 

The above factors are just a smattering of reasons for Singapore food tech’s continued growth, and over the next several months we will continue to see new advances in ag tech, alt protein, packaging, and other areas of the food supply chain emerge.

Plenty and Driscoll’s Partner to Grow Strawberries Indoors

San Francisco Bay Area-based vertical farming startup Plenty and well-known berry brand Driscoll’s announced a partnership today to grow strawberries year-round via controlled-environment indoor farms. The partnership will use Plenty’s indoor farming technology and incorporate Driscoll’s proprietary genetics for strawberries, according to a press release sent to The Spoon. 

Plenty hinted at strawberries (and tomatoes) more than a year ago, when it unveiled its high-tech vertical farm Tigris. Currently, the company is best known for its mixtures of leafy greens, which it grows indoors via the hydronponic method. Plenty’s facilities also utilize sensors, LED light mixtures, and temperature and air control to create the optimal growing environment for plants.

Leafy greens are still one of the most common crops grown in these controlled-environment farms, and for a few of good reasons. For one thing, they’re one of the most popular produce types among U.S. consumers today. They are also far more delicate than, say, a mango, making it harder to transport them without spoilage. Leafy greens also yield more crop in a smaller space compared to something like a row of sweetcorn, and they can be harvested faster. Something like a strawberry takes more time to grow, and one profile of Plenty last year noted that it can take up to nine months to understand how a strawberry plant performs inside a controlled environment operation.

Lately, though, more ag tech companies have announced plans to grow more than arugula and herbs. Most notably, a Singapore-based company called SinGrow has employed its proprietary vertical farming tech to grow strawberries on a rack designed specifically for that fruit. SinGrow also creates its own strawberry breeds. Unfold, which just raised $30 million, has added cucumbers and tomatoes to its roster. Plenty itself said at the time of the Tigris launch that it wants to grow “exotic” fruits and vegetables, though as yet the company hasn’t named specific crops.

Strawberries aren’t exactly exotic, but for vertical farming, they are a logical next crop after leafy greens. Plenty’s home state of California produces over 91 percent of the country’s entire strawberry supply, and that fruit is also high on U.S. consumers’ lists.

To start, Driscoll’s will grow strawberries at Plenty’s Laramie, Wyoming facility. Driscoll’s Chairman and CEO J. Miles Reiter said in today’s press release that this partnership “will create a competitive market edge.” While that remains to be seen, one thing we can expect with a fair amount of certainty is that more companies will be growing strawberries via controlled environments in the months to come. 

Unfold Raises $30M to Innovate on Vegetable Varieties in Vertical Farming

Today, Leaps by Bayer, an investment arm of Bayer AG, and Singapore-based investment firm Temasek announced the creation of a new company that will develop new varieties of vegetables best suited to grow in vertical farms. The new company, dubbed Unfold, raised $30 million from Temasek and Bayer in its initial funding round and plans to use the money for building out R&D operations in the U.S. 

Unfold is taking a slightly different approach to the vertical farming concept. Whereas most vertical farming companies focus on developing new technologies to improve the grow process of plants (building more automation into the growing and harvesting processes or finding the perfect light “recipe” for a crop), Unfold will channel its resources into seed genetics to develop seed varieties specifically tailored to the vertical farming environment.

So far, vertical farms typically use seeds developed for other types of grow environments — greenhouses or open fields, for example. Unfold, which has entered into agreement for some rights to germplasm from Bayer’s vegetable portfolio, will breed seeds tailor-made for the vertical farming environment, which uses LEDs in place of sunlight and, typically, hydroponics or aeroponics.  

Speaking in today’s press release, Unfold CEO John Purcell said the company will combine seed genetics with ag tech methods to improve things like flavor and appearance of vertically grown greens. The company also aims to develop seeds that can mature faster and yield more edible product. To start, the company will work on lettuce, cucumbers, and tomatoes. 

Approaching the vertical farming process at the seed level, so to speak, is the exception rather than the rule at the moment, though Unfold isn’t quite the only company trying this. In Singapore, a company called SinGrow has developed its own breed of strawberries, which it grows on its own proprietary vertical farming racks.  

Unfold’s Purcell told CNA this week that vertical farming is “an important player in the food ecosystem.” But the model has yet to prove itself as a food-growing method that can feed millions and deliver a return on investment. Focusing on seed genetics can help farmers cultivate more varieties of vegetables that taste better and grow faster may provide more answers to the question of vertical farming’s overall scalability and its long-term role in the food system.

Kalera to Build the Largest Vertical Farm in Texas

Vertical farming company Kalera announced today that it will open a high-tech facility in Houston, Texas in the spring of 2021. According to today’s press release, this will be the largest vertical farming facility in the state.

The announcement follows recent news that Kalera is also opening a facility in Atlanta, Georgia in 2021. The company already operates one in its hometown of Orlando, Florida.

Over the last couple years, Kalera has made a name for itself supplying greens grown via vertical farms to the hospitality sector. As of the end of last year, the company’s HyCube system was supplying the Orlando World Center Mariott resort with greens, and had plans with several grocery retailers and restaurants. It opened a second facility in Orlando in March of this year.

Then, as so many narratives go these days, the pandemic hit, and it’s a little hard to service produce to restaurants that are closed down. So Kalera struck a deal with Publix to sell its greens at 165 of the grocery retailer’s stores. 

“We were very fortunate to be able to quickly pivot and focus more on the retail side and benefit from the slowdown.,” Kalera CEO Daniel Malechuk told me over the phone in April, at the time of this pivot. 

The company didn’t name grocery specifically in today’s release, but given the current situation in Texas around COVID-19, retail seems a more likely destination than restaurants for greens coming out of Kalera’s new facility. Once open, the new site will be able to service not only the Houston area but also Dallas-Ft. Worth, San Antonio, Austin, and New Orleans. 

Kalera’s high-tech vertical farming system uses IoT, data analytics, AI-powered process automation and cleanroom technology in its facilities to monitor plant growth and create the optimal recipe of lights, nutrients, and water for crops. Right now, the company grows leafy greens, which Malechuk said in April take less time to transport. “Other produce and fruit is probably extremely cost prohibitive in dense urban settings and situations,” he said.

The last few weeks have seen a surge of news in vertical and indoor farming, both in commercial-scale farming and at-home devices. AppHarvest has partnered with the Dutch government to turn the Appalachian region of Kentucky into something of an indoor farming powerhouse. Farmshelf launched its first-ever at-home vertical farming until for consumers. And SinGrow, a Singapore-based company that actually is trying to grow more than leafy greens, is getting a lot of attention of late for its proprietary strawberries and vertical farming tech.

Kalera said in today’s release that the Houston facility is just one in a string of planned locations around the U.S. and the rest of the world.

Singapore to Allocate $40M to Help Agtech and Aquaculture Startups Grow More Local Food

Singapore agtech is about to get an investment shot in arm, one that could give the whole world a clearer vision of alternative farming’s role in our future food system. Enterprise Singapore, the government agency committed to startups, said last week it will invest roughly $40 million USD into agtech and aquaculture companies, according to AgFunder News. 

Koh Poh Koon, Singapore’s senior minister for trade and industry, said during the announcement that “Using agritech can help to make [Singapore’s] food supplies more resilient by building a bigger margin of local food capacity.”

Sinapore relies on imports for about 90 percent of its food. As the pandemic has shown us, that reliance on external sources can be problematic if the supply chain gets disrupted. The city-state already has one initiative in place to address this, the “30 by 30” program, which aims to have 30 percent of Singapore’s food produced domestically by 2030. 

The newly announced funding will go towards agtech and aquaculture startups that apply through the Singapore government’s Business Grants Portal. 

Singapore has become something of a hotbed in the last couple years for food tech, especially when it comes to alternative proteins and alternative farming methods. Last year, the city-state’s National Research Foundation allocated $535 million (USD) to increase R&D efforts in cell therapy manufacturing, digital technology, and sustainable urban food production. Food-focused accelerators like GROW’s Singapore Food Bowl program are also emerging as a resource for startups. Meanwhile, individual companies are also developing ways to make Singaporean food more local, from SinGrow’s proprietary strawberries, to Turtle Tree Labs’ cultured human breastmilk.

Those uses of alternative farming and food production could be a clue for the rest of the world about how technologies like high-tech farming systems, post-harvest technology, and raising alternative protein sources fit into the broader picture of the future food system. Many of these technologies are nascent and have yet to prove themselves economically scalable. If Singapore can use them to meet its “30 by 30” goal and beyond, it could provide a blueprint for the rest of the world as the population increases and demand for local food production grows.

Fifth Season Launches a Direct-to-Consumer Program for Vertically Grown Greens

Vertical farming company Fifth Season, which just opened its first commercial-scale farm outside Pittsburgh, PA, announced today the launch of its direct-to-consumer e-commerce platform and a new partnership to assist the company with expansion.

Fifth Season’s farm uses hydroponics, AI, and robotics to grow what the company hopes will be 500,000 pounds of leafy greens and herbs annually. The robotics element is especially interesting because it allows the company to automate tasks on the farm that would otherwise be difficult for humans to perform — climbing multiple stories to retrieve grow trays, for example. Human still work on the farm, but the addition of robotics brings down some of the labor costs.

The new direct-to-consumer program sells the greens grown on this farm to customers via the company’s new e-commerce site. Products include packs of leafy greens as well as BYO salad kits. And as far as pricing goes, the goods are on par with what you would find in the grocery store: $7.99 for two 5 oz. packs of greens and $17.50 for two salad kits.

Since one of the key points of large-scale vertical farming is to connect consumers with more local produce, right now the e-commerce site only ships to the Pittsburg area. They are also available at a number of Whole Foods and Giant Eagle stores.

The company plans to expand its farming locations into additional parts of the U.S. at some point in the future, although there’s no official timeline for that yet. One thing that may help is a new partnership the company just struck with NHL Hall of Famer and co-owner of the Pittsburgh Penguins, Mario Lemieux. According to today’s press release, the partnership will “accelerate Fifth Season’s expansion plans.”

Large-scale vertical farming continues to attract investment dollars. Earlier this year, Boston, MA-based Freight Farms raised $15 million and also partnered with Sodexo to bring its container farms to U.S. schools. North of the border, Elevate Farms just netted a $10 million investment to bring vertical farming to remote, food-insecure areas of Canada. And Singapore startup SinGrow, which just joined AgFunder’s investment portfolio, aims to grow more than leafy greens, starting with its own proprietary strawberries.

Fifth Season itself has attracted its fair share of investments. It raised a $35 million round in October 2019 led by Drive Capital and including additional investors with ties to Carnegie Mellon University, where the idea for the company was originally born. 

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.