BrightFarms Launches Multimillion-Dollar R&D Hub in Greater Cincinnati
By Liz Engel - Staff reporter
June 24, 2021
An indoor farming company is investing millions in Ohio with the debut of a new research and development hub.
BrightFarms, a New York-based grower of indoor leafy greens since 2013, is forming BrightLabs, a new innovation and research hub, at its Wilmington greenhouse. BrightLabs, overall, will represent a tenfold increase in the company’s research capabilities, while increasing profitability and delivering new product innovations.
Steve Platt is the CEO of BrightFarms. (Jenn Erickson)
CEO Steve Platt declined to disclose the exact investment but told me it’s in the multimillions. The project is being launched as part of the company’s $100 million Series E funding round in October led by media conglomerate Cox Enterprises.
“BrightFarms as a company has been growing very consistently, and the indoor farming industry is at an inflection point,” Platt said. “We’ve perfected how we grow – among competitors, we’ve developed the most profitable model for the production of indoor leafy greens – but now’s the time to invest behind R&D to secure an advantage for the future. It’s essential to stay ahead of the curve.”
Like others in the indoor farming space, BrightFarms lauds the fact that its lettuce is healthier, tastier, looks better, is more nutritious, and, particularly for customers in Ohio, fresher than field-grown produce hauled in from states like California and Arizona. Today the company’s five greenhouses in Ohio, Virginia, Illinois, Pennsylvania produce 9 million pounds of produce each year.
But unlike several outfits, particularly vertical farms that use purple-hued LED lighting, BrightFarms leverages natural sunshine. Its souped up, high-tech greenhouses grow spinach, romaine, arugula and more using a hydroponic system, or water instead of soil.
Wilmington, which celebrated its first harvest in 2018, isn’t the company’s largest greenhouse in terms of size or production, but Platt said it made a good host for the innovation hub because of its centralized location. It’s close to customers and easily accessible from its other farms. He also credited the workforce and level of academic talent available from universities nearby.
BrightFarms celebrated its first harvest in Wilmington in 2018. BrightLabs is investing millions to build out an innovation and research hub at the site. (Brian Mollenkopf)
Phase one for BrightLabs includes a new, approximately 1,350 square foot lab that has been built at the Wilmington greenhouse site. BrightFarms will also dedicate space on the farm for the BrightLabs team to work.
Platt said BrightLabs will focus on three key areas:
Biotech. BrightFarms wants to study the environments in which plants grow to increase yield, flavor, and texture.
Agtech. BrightOS, the company’s proprietary AI software system, acts as the company’s central nervous system, Platt said, collecting millions of data points from its fives farms to streamline operations. How can the company improve that technology?
Product innovation. BrightFarms recently launched NutriGreens, a new lettuce packed with antioxidants – double the amount, Platt said, found in a serving of blueberries. BrightFarms wants more advances like that.
BrightLabs itself will be led by Matt Lingard, a former Bayer plant scientist and Ph.D. with over 15 years of experience, who joined BrightFarms in May as its VP of agriculture and science. Platt said the BrightLabs team will include four employees to start.
“We’re the leading grower of indoor spinach – in the U.S. we grow 90% of the indoor spinach that’s sold – but we want to double our production on that. How do we come out with new types of spinach that can grow even better in a hydroponic system?” he said.
“We’re taking on a massive industry and a complicated, broken system – where greens are grown all in one location, shipped thousands of miles across the country, generally with pesticide reside, there’s a food-borne illness, and the product isn’t that good,” Platt added. “We have a simpler system and a better product, but we need to deliver that at a price point and at a volume that competes with what’s coming out of California. If we’re trying to unseat this big gorilla, we can’t be this niche that’s only affordable to people who drive Teslas.”
Overall, there’s billions being invested in the industry. New York City-based Bowery Farming, in late May, announced a $300 million funding round with a $2.3 billion valuation. Kentucky-based AppHarvest merged with a special purpose acquisition company in February, an IPO approach that’s gaining ground in 2021, and is now worth $1.5 billion.
BrightFarms, with its Series E, has raised more than $200 million in total. In addition to launching BrightLabs, it plans to use the funds to expand its network of regional indoor farms – new farms are currently under development in Massachusetts and Texas – and grow its retail footprint. Locally, BrightFarms is available at Sam’s Club, Walmart and Pipkin Produce as well as Food Lion and Kroger in other markets.
The company said by the end of 2021 its leafy greens will be available at over 3,500 stores.
“It’s amazing. Even when I joined the company two years ago, we were convincing people this was the future. Now customers are coming to us saying, ‘We want to replace field grown with indoor-grown,’” he said. “We think the future is here.”
Lead photo: BrightFarms grows leafy greens like spinach, romaine, and arugula in high-tech, computer-controlled greenhouses.