October 14, 2020

By Lynda Kiernan, Global AgInvesting Media

Leading vertical farming pioneer Plenty and top fresh berry producer and brand Driscoll’s have announced a joint development agreement to grow Driscoll’s proprietary strawberries year-round in Plenty’s vertical indoor farms.

It is also being reported that as part of the deal Driscoll’s is making an unspecified, but ‘major” investment in Plenty. 

Each of the companies have a vested interest in bringing superior berries to market year-round. Under the terms of the agreement, Plenty will synergize Driscoll’s proprietary genetics and expertise with its own advanced indoor farming technology and plant science knowledge to consistently deliver berries of optimum flavor, texture, and size.

Using data analytics, machine learning, and customized lighting, Plenty is able to deliver at an unprecedented rate – leveraging more than 200 years worth of growing data generated by its platform each year. Over the past 24 months Plenty’s advanced agri-food platform has resulted in more than a 700 percent improvement in leafy green yields grown using 100 percent renewable wind and solar energy. 

“It’s clear that Plenty’s vision and capabilities of pioneering the potential of indoor farming technology makes them the leader in this space,” said J. Miles Reiter, chairman and CEO, Driscoll’s. “As one of the few berry companies with a dedicated global R&D program, we believe our proprietary berries, which are focused on flavor, combined with Plenty’s technology leadership will create a competitive market edge as we expand to more effectively meet the future consumer.”

At this point, it’s true that vertical farming is not at the point of replacing traditional agriculture. However, the technology continues to mature, the funding rounds continue to grow, and the facilities continue to scale, allowing vertical farming to forge relationships that give it meaningful inroads into commercial channels.

Indeed, in recent years investment has significantly increased in the vertical farming market, which is expected to grow at a CAGR of 24.8 percent to expand from a value of $2.13 billion in 2018 to $12.04 billion by 2026, according to Fortune Business Insights. This growth will be driven by decreasing arable land, strong demand for local, sustainable produce, and population migration towards mega-cities.

Indoor vertical farming has represented a significant and increasing share of total agtech venture capital investments, according to Agroecology Capital Research, 2019. Large rounds such as AeroFarms (2013 and 2017) and Plenty ($200 million in 2017) led this vertical’s share to boost in 2013 and 2017 (10 percent in 2013 and 15 percent in 2017). Unsurprisingly, the U.S. has concentrated 89 percent of total investments between 2010 and 2019.

For consumers, vertical farming presents an option that allows them to feel better about their choices by producing clean, high-quality fresh food using a fraction of the land and natural resources needed in the field. But perhaps just as attractive to consumers is the great taste of produce grown indoors compared to field-grown varieties that are bred for resilience against long supply chains.

“…following my visit to an indoor farm in the Bay area, less than two hours’ drive from Salinas, California, known as the “Salad Bowl of America”, I started to understand the reason why indoor farming makes sense,” said Adam Bergman, managing director, EcoTech Capital, in his piece Is Indoor Farming Poised to Challenge the Status  Quo? published in GAI News in September 2019. “The most compelling reason is taste. Produce that I have tasted that was grown in indoor farms tastes much better than the field-grown varieties available in stores and restaurants.”

“For over 100 years, Driscoll’s has been innovating in search of the best-tasting berries,” said Nate Storey, co-founder and chief science officer of Plenty. “As they embrace the emergence of indoor farming, we are proud they have chosen Plenty as their collaborator to develop flavorful berries grown indoors in a clean, controlled environment. We are aligned in our mission to bring the most delicious food to our consumers while reducing our environmental impact. Our goal is to bring fresh, flavor-forward berries grown locally to consumers around the world.”

The two companies were brought together through John Hartnett of agtech investor SVG Ventures, who fostered discussions between the two companies that have aligned missions.

“The future of food and agriculture through innovation is accelerated when leaders like Driscoll’s and Plenty come together to transform the growing process in ways that benefit consumers,” said John Hartnett, founder & CEO SVG Ventures & THRIVE. “We are delighted that our open innovation partnership with Driscoll’s played an important role in this opportunity.”

Initially, Driscoll’s berries will be grown in Plenty’s Laramie, Wyoming, site – the largest privately-owned vertical farm R&D center in the world –  indicative of the potential for strawberries and other such fresh produce to be grown far from their traditional regions (which for strawberries is typically Florida and California).

Indoor vertical production is not only overcoming geographic barriers, but is overcoming production hurdles as well by rapidly expanding the crops that can be so produced.

What began with just leafy greens is now turning a hand to strawberries, tomatoes, and cucumbers.

Unfold, a joint partnership between Singapore’s sovereign wealth fund Temasek and Leaps by Bayer, the investment arm of Bayer, is a new venture that will focus on the development of new vegetable varieties that will play a role in enhancing the quality, sustainability, and efficiency of vertical farming. 

The venture will address the needs and gaps holding back vertical farming from fully meeting its potential from a different angle. As most innovation in the space attempts to develop advanced infrastructure, Unfold will instead use the germplasm from vegetable crops to explore the genetic potential for new varieties of seeds, and new approaches to agronomy uniquely tailored for indoor and vertical farming.

At this point, Unfold has already raised $30 million in initial funding and has forged an agreement through which it will gain rights to certain germplasm from Bayer’s vegetable portfolio.

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.