(Bloomberg) —
Agriculture tech company Agrovision Corp. has raised $100 million for its farms growing blueberries, raspberries, blackberries and more— seizing on a broader trend of growth in US berry consumption.
The funding round, led by Aliment Capital, values Los Angeles-based Agrovision at more than $1 billion. The company sells fruit under its Fruitist and Big Skye labels, which are available at some branches of retailers including Costco, Trader Joe’s and Sprouts.
Agrovision, which is about a decade old, sees an opportunity in bringing recognizable brands to the produce aisle — an area where products like cherries, grapes and berries are generally considered commodity goods. The company also says it has a technological edge: growing its fruit in optimal areas around the world, using proprietary genetics and leaning on data analytics.
The company’s leading product is a 9.8-oz package of jumbo blueberries that costs in the $6-$8 range — placing it at the premium end of the spectrum. Co-founder Steve Magami said his blueberry is an affordable luxury that consumers will want to pay a bit extra for.
“You wouldn’t think to put it in a blender,” Magami said, because the blueberries are consistently sweet, flavorful and firm. “This is an enjoyable snack you’re going to want to eat fresh.”
America is currently experiencing a berry boom. In the US, imports of fresh blueberries rose from 44 million pounds in the period from 2000 to 2002, to 450 million pounds from 2018 to 2020, according to the US Department of Agriculture. Research company Mordor Intelligence believes berries will represent a $31.9 billion business by the end of the decade.
Agrovision declined to release sales numbers but said it was profitable. The company has raised about $250 million total in equity since it was founded in 2012, as well as $300 million in debt. With this round, Aliment’s Ben Belldegrun took a board seat.
The berry business has many challenges: The fruit is delicate, and getting it to store shelves at just the right time is a balance. Compared to apples or bananas, berries don’t produce or respond much to ethylene, a gas that accelerates ripening and gives merchants some flexibility over when to sell their fruit. Agrovision says it can compensate for that by using storage containers designed by Washington-based RipeLocker Inc. that control pressure, oxygen and carbon dioxide levels until the produce is ready for a supermarket.
In the recent past, agriculture technology and related sectors have given investors plenty of poor outcomes. Investors wrote big checks to alternative farming companies like AeroFarms and AppHarvest Inc. before they eventually entered Chapter 11. Meanwhile, alternative meat companies have floundered.
Magami says he offers a better value proposition, and he believes the company can solve for an important healthy-snacking problem. “There’s nothing worse than going to the store and you get a soft, a mushy, a short-shelf life blueberry,” he said.
To contact the author of this story:
Sarah McBride in San Francisco at smcbride24@bloomberg.net
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