August 19, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

It wasn’t that long ago that Apeel had raised $250 million in capital, bringing the company’s valuation north of $1 billion, and giving it unicorn status.

Little more than a year later, the company has secured another $250 million in Series E capital commitments led by returning investors Temasek, doubling its valuation to $2 billion. 

This round, which includes a roster of high-profile names including Katy Perry, Andreessen Horowitz, Susan Wojcicki of YouTube, Mirae Asset Global Investments, Tao Capital Partners, K3 Ventures, David Barber of Almanac Insights, Michael Ovitz of Creative Artists Agency, Anne Wojcicki of 23andMe, GIC, Viking Global Investors, and Disruptive, brings total funding to-date to $635 million.

Founded in Santa Barbara, California, in 2012 by James Rogers, a Ph.D. graduate of the University of California, Santa Barbara, with a grant from the Bill & Melinda Gates Foundation, Apeel Sciences’ technology  was originally developed to address post-harvest food loss being experienced in developing countries due to a lack of refrigeration.

With a mission to create a more sustainable global food system, Apeel combines the power of nature with the might of data sciences and materials to developed a method for extracting molecules from organic agricultural waste and byproducts – such as grape skins that remain after wine production processing or banana peels, leaves, or stems left over after harvesting – to create an undetectable edible barriers derived from natural plant extracts.

“The pandemic has completely shaken up food retail: people are increasingly buying their fresh produce online, while simultaneously expecting the best in terms of quality and sustainability,” said James Rogers, CEO, Apeel.

Apeel noted that food waste is a systemic challenge, accounting for approximately 8 percent of global greenhouse gasses, with 25 percent of food in the U.S., and 19 percent in the EU going to waste, making its mitigation a key course of action for fighting climate change. 

Working with the knowledge that spoilage is caused by oxidation and water loss, the coating, which can be easily washed away with water, protects fruit and vegetables through controlling the rate at which water and gasses enter, or are released by produce. This effectively makes obsolete the use of gas, wax, or other techniques currently used in the industry in the attempt to keep produce fresher longer.

As of 2019, Apeel has prevented the loss of 42 million pieces of fruit from going to waste at the retail level, translating to the avoidance of 10,000 metric tons of carbon dioxide equivalent of greenhouse gas emissions. The company’s technology also has conserved nearly 4.7 billion liters of water and has resulted in up to a 50 percent reduction in avocado food waste with corresponding sales growth.

The scale of this achievement and the potential future good that Apeel can accomplish has been reflected in the company being featured in four food retail Environment, Social And Corporate Governance (ESG) and sustainability reports – including those released by Longos and Migros, to-date. 

Alvaro Munoz, the CEO of AM FRESH Group, a world leader in sustainable farming, cutting-edge varietal development, and commercialization of fresh produce, with global sales exceeding $1.5 billion commented, “Our choice to partner with Apeel supports our mission to deliver new and superior products that are better for our retail partners, their customers, and the environment.”

“We have seen first-hand how Apeel extends the lifespan of fresh produce by using resources from nature, and we know today’s consumer expects more from producers and wants to enjoy healthier, innovative and longer-lasting produce,” continued Munoz. “I’m excited to see the innovations Apeel and AM FRESH will create for the benefit of our customers and the planet.”

New Networks

Apeel stated that as its supplier and retail partnerships expand, consumer access to longer-lasting fresh produce expands with it. With the new funding gained through this round, the company plans to co-create new supply networks with produce suppliers and retailers that will increase the availability of fresher produce including avocados, limes, mangoes, cucumbers, apples and more across the U.S., UK, and the EU.

Currently the company has teams and partners on the ground in eight countries operating 30 supply networks working to apply Apeel’s protection to produce, capture internal and external data, and distribute Apeel-protected produce to 40 retail partners and tens of thousands of stores around the world.

With this new funding the company has set a goal to operationalize a minimum of 10 additional supply networks by the end of this year.

It also plans to allocate capital in support of advancing its data and insight offerings, including through potentially complementary acquisitions to strengthen its technology stack. Apeel pursued this strategy in May of this year when it made its first acquisition, taking on Impact Vision – a hyper-spectral imaging technology that provides valuable metrics about each piece of fruit including nutritional content, stage of ripeness, and other quality indicators. 

Commenting on the company’s plans, Rogers said, “We’ll use our latest funding to help our supplier and retailer partners offer a differentiated experience to their shoppers: high-quality produce that’s less likely to go to waste at home. By using solutions by nature and for nature, and in collaboration with food supply chain partners around the world, we can ensure people everywhere have a great experience with their fresh produce while increasing the sustainability of the global food system.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.