August 6, 2024

By Gerelyn Terzo, Global AgInvesting Media

Los Angeles-based Agrovision, a tech-powered superfruit platform, has closed a $100 million equity round to finance its next growth phase. With berry consumption on the rise, Agrovision scored a $1 billion-plus valuation. Founded in 2012, Agrovision welcomed returning investor Ailment Capital to the round alongside Steve Kaplan, co-founder of alternative investment management firm Oaktree Capital Management and Agrovision board member, among other backers.

Agrovision grows superfruits such as blueberries, raspberries, blackberries and cherries that are marketed under the Fruitist and Big Skye brands and sold at U.S. retailers such as Trader Joe’s, Sprouts and Costco. The company is looking to capitalize on brand recognition in the produce section, harnessing its proprietary premium genetics, advanced data analytics and vertical integration to produce jumbo berries.

The company has directed hundreds of millions of dollars in capex toward a global expansion push, new genetics, AI and other proprietary technologies to upgrade the snacking experience while extending freshness and shelf life. Its vertically integrated platform provides consistency and reliability in an industry that can otherwise be riddled with challenging conditions around temperatures, light, etc., not to mention the process of transporting delicate berries.

Additionally, Agrovision controls its own large-scale land and water assets in micro-climates within countries such as Peru, Mexico, Morocco, the United States, Egypt, India and China. As a result, it is able to deliver year-round supplies to retailers across North America, the U.K., Europe, China, Southeast Asia and the Middle East. Its approach has paid off, as evidenced by a 220 percent growth rate, with revenue ballooning from $65.8 million in 2019 to $210.4 million in 2022 before reaching $300 million as of early August.

Agrovision Co-Founder and CEO Steve Magami stated, “Delivering more flavorful superfruit year-round requires full stack innovation — optimizing across every layer of technology — from genetics and systems to AI. A new era has begun, with the generational shift to healthy snacking, and we are happy to lead a revolution in superfruit.” Costing $6-$8 per package, Magami described his company’s blueberries as an “affordable luxury” in an interview with Bloomberg.

Indeed, the healthy snacking market is predicted to be worth over $100 billion in 2024, which has led to robust consumer demand for Fruitist and Big Skye products. Berries alone as a market segment are forecast to be valued at $32 billion in the next half-decade. Agrovision also revealed that the rise of GLP-1 drugs for weight and blood sugar management has resulted in a pivot in consumer behavior, fueling a 20 percent increase in prescription-based fresh produce sales.

Meanwhile, the United States is a net importer of blueberries, with import volume rising from 44 million pounds in the early 2000s to 450 million pounds between 2018 and 2020, according to the USDA.

Ben Belldegrun, co-founder and managing partner of Aliment Capital, stated, “Berries are an iconic fruit, and we’ve observed a shift in how people are investing in their health and spending at the store. Agrovision is truly the ‘right place, right time’ with its unique model of owning the full stack, enabling them to guarantee customers high-quality superfruit throughout the year regardless of their geographic location. We’ve seen Agrovision’s commitment to sustainable and innovative farming practices firsthand, and we are confident that their approach will set a new global standard for healthy snacking.”

As part of the latest fundraising, Aliment Capital’s Belldegrun became a member of Agrovision’s board.

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