December 15, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Leading sustainable food and agribusiness inventor Arable Capital Partners and Alpine Pacific Capital announced the sale of Fresh Innovations California (Fresh Innovations) to Peterson Farms for an undisclosed amount. 

Founded in 2011, Fresh Innovations has grown to be a leader in the fresh sliced apple category. Under the company’s mission “to provide innovative products that are great-tasting, convenient, and healthy,” the company provides both organic and conventional packaged fresh fruits and vegetable products to warehouse clubs, casual dining establishments, and to the education, entertainment, and health care sectors.

Arable initially partnered with Alpine Pacific Capital to acquire the company in March 2018 with the intention of working together with Fresh Innovations’ management team to expand their existing operations and to pursue further innovation in the fresh food value-added space. 

“We like the Fresh Innovations approach to healthy, convenient, fresh snacks and are excited to partner with Toby Cohen, Gary Madson, Todd Nelson, and the rest of the team to support their growth plans,” Greg Richards, managing director with Arable Capital Partners, said at the time. 

Richards went on to note that Arable was particularly intrigued by the potential for sliced apples, stating, “…We think sliced apples are part of a very exciting category in healthy fresh snack food…”

In June 2018, Arable and Alpine went on to acquire the assets of Farmington Fresh, a processor of fresh sliced apples, oranges, pears, and other packaged fruit to merge with Fresh Innovations to create the leading provider of sliced apples to K-12 schools in the Western U.S. 

“We are excited to build on our investment in the value-added fruit and vegetable category,” Derek Yurosek, managing director, Arable Capital Partners, commented on the deal. “This merger allows both companies to continue their high level of service for their existing customers and to develop new customers on a regional and national level.”

It was likely a savvy move. The fresh fruit and vegetable processing market (which includes fresh cut fruit) was expected to grow at a compounded annual growth rate (CAGR) of 7.1 percent from 2017 to reach a value of US$346.05 billion by 2022 (basically, the period of time Fresh Innovations was held by Arable), according to Research and Markets. 

This growth –  based on customer demands for fresh foods and advances in technologies that enable these products to have a longer shelf life while maintaining their nutritional value – is still expected to continue on an upward trajectory. Between 2022-2030, the global fruit and vegetable processing market is expected to grow at a CAGR of 5.98 percent, to surpass a value of $545 billion by 2030, according to Precedence Research. 

A First Exit

This sale of Fresh Innovations to Peterson Farms marks the first exit by Arable since its formation in 2017. Commenting on the transaction, Arable stated the resulting merger will allow both companies to enhance their fresh-cut fruit processing and distribution capabilities for customers across the U.S.

“This combination of Fresh Innovations with Peterson Farms makes tremendous sense for both businesses and we are pleased we were able to execute this transaction for the company,” said Yurosek.

Richards added, “We have enjoyed partnering with the Fresh Innovations team over the last five years and are now excited about this as the right opportunity for the company going forward.”

~ Lynda Kiernan-Stone is editor in chief 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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