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Sobeys To Boost Supply of Vertically Farmed Produce
Under an expanded partnership with Sobeys, vertical farming company Infarm plans to build four new production sites to be able to supply fresh produce to more than 1,000 of the Canadian grocer’s stores.
By Russell Redman
July 26, 2021
Under an expanded partnership with Sobeys, vertical farming company Infarm plans to build four new production sites to be able to supply fresh produce to more than 1,000 of the Canadian grocer’s stores.
Infarm said Monday that it aims to construct Infarm Growing Centers in Calgary, Alberta; Halifax, Nova Scotia; Winnipeg, Manitoba; and Hamilton, Ontario. Near Toronto, the Hamilton facility will be Infarm’s largest production site in North America, with a growing capacity of 37,000 square feet, the company said.
Sobeys and Infarm formed their partnership last year, with a goal of providing locally grown, indoor-farmed produce to the Stellarton, Nova Scotia-based retailer’s customers nationwide. The deal was the first of national scope between a Canadian retailer and a vertical farming company, according to Infarm.
“We are passionate about bringing Canadian families the best, freshest, most delicious produce every single day. The expansion of our exclusive partnership with Infarm demonstrates our commitment to delivering that in a technologically advanced and sustainable way,” Niluka Kottegoda, vice president of customer experience at Sobeys, said in a statement.
“We received overwhelmingly positive feedback from our customers and our store teams about the current Infarm product grown in our stores,” she added. “We are thrilled to expand into the Infarm Growing Centers, as they allow us to exponentially offer these great local products to a multitude of communities across Canada all year round.”
Berlin-based Infarm combines vertical farms with Internet of Things (IoT) and machine learning technology to create a resilient alternative food system. Situated across urban markets, Infarm’s smart modular farms are designed to grow fresh produce for city inhabitants.
The growing centers house farming units that can each save up to 10 million liters of water annually versus soil-based agriculture for similar crops, while producing the equivalent of up to 100,000 square feet of land, Infarm reported. The company noted that 90% of electricity used throughout the Infarm network will be from green-certified sources by September 2021, part of its plan to use 100% renewable or green-certified energy.
Sobeys' partnership with Infarm is the first national-level deal between a Canadian retailer and a vertical farming company.
With their expanded partnership, Infarm and Sobeys will extend the availability and distribution of vertically farmed produce to another four of Canada’s 10 provinces by 2023. That will boost production volume in Canada by more than sevenfold, in tandem with current Infarm Growing Centers in Vancouver and Victoria/Vancouver Island in British Columbia. According to Infarm, the deal stems from rising retailer demand for its produce, including from the Sobeys, Safeway and Thrifty Food supermarket banners of Empire Co. Ltd., the parent company of Sobeys Inc.
Infarm said that, by 2025, it expects to scale to 100 growing centers, with a growing capacity of 3 million square feet. As a result, over the next five years, Canadian consumers can expect to see a range of new Infarm produce items — such as tomatoes, strawberries, peppers, mushrooms, pre-cut salads and potted plants — added to the current selection of herbs, leafy greens and microgreens now available in grocery store aisles, the company said.
In turn, Infarm’s Canadian team of 97 employees stands to grow more than 50% to 160 by the year’s end, working from sites in British Columbia, Alberta, Ontario, Nova Scotia and Manitoba.
“We’re delighted with what has been an extremely positive and successful partnership with the Sobeys family of retailers,” stated Erez Galonska, CEO at Infarm. “This expansion deal represents one of the largest rollouts of any vertical farming company in North America to date as we aim to offer local, high-quality produce to people everywhere.”
Founded in 2013 by Osnat Michaeli and brothers Erez and Guy Galonska, Infarm operates more than 1,300 farms in stores and growing centers worldwide and has partnered with over 30 major retailers in Canada, Denmark, France, Germany, Japan, Luxembourg, the Netherlands, the United Kingdom, the United States and Switzerland. U.S. retail partners include The Kroger Co., Whole Foods Market and Amazon Fresh. International grocery retail partnes include Aldi Süd, Auchan, Carrefour, Casino, E. Leclerc, Edeka, Farmdrop, Intermarché, Irma, Kaufland, Kinokuniya, Marks & Spencer, Metro, Migros, Selfridges, Selgros and Summit.
Infarm Raises $170M In Equity And Debt To Continue Building Its ‘Vertical Farming’ Network
That’s likely a testament to the speed of new retail partnerships over the last 12 months. They include Albert Heijn (Netherlands), Aldi Süd (Germany), COOP/Irma (Denmark), Empire Company’s Sobeys, Safeway and Thrifty Foods (Canada), Kinokuniya (Japan), Kroger (U.S.) and Marks & Spencer and Selfridges (U.K.)
September 17, 2020
Image Credits: Infarm
Infarm, the vertical farming company that has built a network of urban farms to grow fresh food closer to consumers, has raised $170 million in new investment in a “first close” of a Series C.
Leading the round — which is expected to reach $200 million and is a mixture of equity and debt — is LGT Lightstone, with participation from Hanaco, Bonnier, Haniel, and Latitude. Existing Infarm investors Atomico, TriplePoint Capital, Mons Capital, and Astanor Ventures also followed on. It brings the company’s total funding to date to more than $300 million.
That’s likely a testament to the speed of new retail partnerships over the last 12 months. They include Albert Heijn (Netherlands), Aldi Süd (Germany), COOP/Irma (Denmark), Empire Company’s Sobeys, Safeway and Thrifty Foods (Canada), Kinokuniya (Japan), Kroger (U.S.) and Marks & Spencer and Selfridges (U.K.).
With operations across 10 countries and 30 cities worldwide, Infarm says it now harvests more than 500,000 plants monthly, and in a much more sustainable way than traditional farming and supply chains. Its modular, IoT-powered vertical farming units claim to use 99.5% less space than soil-based agriculture, 95% less water, 90% less transport, and zero chemical pesticides. In addition, 90% of the electricity used throughout the Infarm network is from renewable energy and the company has set a target to reach zero emission food production next year.
Founded in 2013 by Osnat Michaeli, and brothers Erez and Guy Galonska, Infarm’s “indoor vertical farming” system is capable of growing herbs, lettuce and other vegetables. It then places these modular farms in a variety of customer-facing city locations, such as grocery stores, restaurants, shopping malls and schools, thus enabling the end-customer to actually pick the produce themselves. To further scale, it also installs Infarms in local distribution centers.
The distributed system is designed to be infinitely scalable — you simply add more modules, space permitting — whilst the whole thing is cloud-based, meaning the farms can be monitored and controlled from Infarm’s central control center. It’s also incredibly data-driven, a combination of IoT, Big Data and cloud analytics akin to “Farming-as-a-Service.”
The idea, the founding team told me back in 2017 when I profiled the nascent company, isn’t just to produce fresher and better-tasting produce and re-introduce forgotten or rare varieties, but to disrupt the supply chain as a whole, which remains inefficient and produces a lot of waste.
“Behind our farms is a robust hardware and software platform for precision farming,” explained Michaeli at the time. “Each farming unit is its own individual ecosystem, creating the exact environment our plants need to flourish. We are able to develop growing recipes that tailor the light spectrums, temperature, pH and nutrients to ensure the maximum natural expression of each plant in terms of flavor, color and nutritional quality.”
On that note, I caught up with two of Infarm’s founders to get a brief update on the Berlin-headquartered company and to dive a little deeper into how it will continue to scale.
TechCrunch: What assumptions did you make early on that have turned out to be true or, more interestingly, not panned out as expected?
Osnat Michaeli: When we first chatted about four years ago, we were 40 people in Berlin, and much of the conversation centered around the potential that our approach to urban vertical farming might have for retailers. While for many it was intriguing as a concept, we couldn’t have imagined that a few years later we would have expanded to almost 10 countries (Japan is on its way) and 30 cities, with partnerships with some of the largest retailers in the world. Our assumptions at the time were that retailers and their customers would be attracted to the taste and freshness of produce that grew right in front of them in the produce section, in our farms.
What we didn’t anticipate was how much and how quickly the demand for a sustainable, transparent, and modular approach to farming would grow as we, as a society, begin to feel the impact of climate change and supply chain fragility upon our lives, our choices and our food. Of course, we also did not anticipate a global pandemic, which has underscored the urgency of building a new food system that can democratize access to high-quality, amazing-tasting food, while helping our planet regenerate and heal. The past few months have confirmed the flexibility and resilience of our farming model, and that our mission is more relevant than ever.
In terms of signing on new retailers, based on your progress in the last 12 months, I’m guessing this has gotten easier, though undoubtedly there are still quite long lead times. How have these conversations changed since you started?
Erez Galonska: While lead times and speed of conversations can vary depending upon the region and retailer. In mature markets where the concept is familiar and we’re already engaged, deal conversations can reach maturity in as little time as three months. Since we last spoke we are already working with most of the leading retailers that are well established in Europe, the U.K., and North America. Brands which in each of their markets are both forerunners in a retail industry rapidly evolving to meet the demand for consumer-focused innovation, while proving that access to sustainable, high-quality, fresh, and living produce is not only possible, but can be available in produce aisles today, and every day of the year, with Infarm.
I’m interested to understand where Infarms are installed, in terms of if the majority is in-store and consumer-facing or if the most scalable and bulk of Infarm’s use cases are really much larger distribution hubs in cities or close to cities, i.e. not too far away from places with population/store density but not actually in stores. Perhaps you can enlighten me on what the ratio looks like today and how you see it developing as vertical farming grows?
Erez Galonska: Today across our markets, the split between our farms in stores and in distribution centers is roughly 50/50. However, as you anticipate, we will be expanding our network this year with many more distribution hubs. This expansion will likely lead to an 80/20 split as early as next year, with the majority of our regions being served with fresh, living produce delivered throughout the week from centrally located hubs. This not only offers retailers and restaurants flexibility in terms of volumes of output, and the ability to adapt the presentation of our offerings to floor areas of different sizes, but it also allows us to begin to serve whole regions from our next-generation farms under development today.
Based in our hubs, these farms will deliver the crop equivalent of an acre or more of fresh produce on a 25 m2 footprint, with significant further savings in energy, water, labor and land use. We believe this technology will truly challenge ideas of what is possible in sustainable, vertical farming and we look forward to talking about it more soon.
Lastly, what are the main product lines in terms of food on the shelves?
Osnat Michaeli: We have a catalog of more than 65 herbs, microgreens, and leafy greens that is constantly growing. Our offerings range from the known and common varieties like Coriander, Basil, or Mint, to specialty products like Peruvian Mint, Red Veined Sorrel or Wasabi Rucola.
Because our farms give us excellent control over every part of a plant’s growth process and can imitate the complexity of different ecosystems, we will be able to expand the diversity of Infarm produce available to consumers to include root vegetables, mushrooms, flowering crops, and even superfoods from around the world in the near future. What you see today with Infarm is still only the beginning.
Farming Goes Vertical
Vertical farming works by growing vegetables in stacked layers that takes place in a controlled environment, often without the use of soil and instead the use of light energy
06-08-2020 | This is money
Top of the agenda for many big firms across Britain and the world in recent years is to find ways to help reduce their environmental footprint and become more sustainable. This has been driven by consumer demand for change and warnings over irreversible damage by large companies, who can make small improvements to help that add up. One such way is vertical farming and it has seen one middle-class supermarket favourite get involved in some stores.
· Vertical farming works by growing fruits and veg in vertically stacked layers
· Claims it can significantly reduce environmental damage
· M&S Simply Food is one of the latest UK retailers to introduce vertical farming
Marks and Spencer is the latest UK retailer to adopt vertical farming into its stores, with a selection of herbs now freshly grown and harvested in stores across London for shoppers to buy.
Vertical farming works by growing fruits and vegetables in vertically stacked layers inside
It has partnered with Infarm, a fast-growing vertical farming firm based in Berlin, that also now operates in other supermarket chains across Europe.
Ocado has also invested £17million in vertical farming while John Lewis plans to grow salads in store in the future in a partnership with LettUs Grow.
Aside from Marks and Spencer, Infarm has recently partnered with the online sustainable supermarket Farmdrop, which stocks a selection of herbs and salad leaves.
It added it will be announcing some new retailers it has teamed up with in the next few months.
Inform also works with a number of chefs in Europe, some of whom have installed farms into their restaurants so they can access the herbs at the freshest point, whenever they want.
In the UK, it supplies produce to Zala Grill in Camden Lock, but it doesn't have a farm in the restaurant.
Meanwhile, in Germany, Infarm currently has eight restaurants with farms including the Michelin starred Sky Kitchen at Vienna House Andel's.
How does it work?
Vertical farming works by growing vegetables in stacked layers that takes place in a controlled environment, often without the use of soil and instead the use of light energy.
Emmanuel Evita, global communications director at Infarm, said: 'Our approach allows us to be climate independent and grow under any conditions, despite changing climate, extreme weather, or disasters which normally interfere with food production and distribution.
'Our vertical farms can be installed directly in any urban space, which is where the majority of the global population will live in the next few decades.'
Compared to conventional farming methods, Infarm argues that vertical farming uses less space, less water, and less transportation.
Its plants are also all locally-grown and free of chemical pesticides, making them better for both consumers and the planet.
When the food comes to harvest, it's just one person in store, moving the produce about a meter from the growing with no machinery, storage or long-distance haulage.
Infarm's hubs are used to initiate the growth seeds.
Once these seeds have developed to a certain maturity, they are delivered to the in-store farms at retailers, to complete their growth cycle and be offered to the consumer.
The hubs grow seeds across more than 65 combinations of herbs, microgreens and leafy greens and also deliver special varieties, like Peruvian Mint or Wasabi Rucola, directly to chefs for use that day.
The fruit and vegetables growing in vertical farming takes place in a controlled environment
One reason vertical farming can help reduce the ecological waste associated with traditional industrial farming, according to Infarm, is that it uses 95 percent less water and 75 percent less fertiliser.
It also uses no chemical pesticides, no genetically modified seeds and says it is able to save 14 litres of water per kilogram of produce.
Evita said: 'Growing fresh produce creates a huge environmental burden on our planet.
'People want to eat the same foods at all times of the year, and this, combined with lengthy transportation routes, and overtaxed soil take a heavy toll not just on the environment but also on the taste and nutrition of what we eat.'
He believes that more retailers are now interested in vertical farming due to the current climate uncertainty.
However, vertical farming is not the cheapest resource out there and has been predicted by some agriculture experts to be three to five times more expensive than traditional farming.
But Infarm says that the product they provide is worth the extra money, especially with the benefits it brings to the environment.
Retailers set the price for the produce Infarm provides in-store with M&S currently charging £1.20 for herbs.
It said the price does not tend to be significantly higher than their other produce offerings.
Vertical farming helps reduce the ecological waste associated with industrial farming
Evita added: 'We find that in recent years, investors from around the globe have been drawn to innovation that addresses the need for sustainable solutions to the challenges that affect our planet.
'Certainly, these are challenges that many countries and regions are dealing with now, and they are becoming increasingly urgent for all of us.'
Coronavirus has also posed many problems to the vertical farming industry, including the need to implement social distancing measures at hubs, although Infarm said it has been able to keep growing during this period.
It added that the global pandemic has seen increased interest from both investors and consumers in the industry with Infarm clients experiencing a 222 percent sales growth in the second quarter of this year.
This means the business has more than doubled its employees since June last year.
The future of vertical farming definitely looks bright. Infarm started just under a decade ago and since then, it has grown to more than 900 farms in supermarkets and distribution centres all around the world, allowing it to harvest over 250,000 plants a month and growing.
It is now expanding from just Europe to the United States with Kroger and Canada with Sobeys as well as recently announcing plans to enter Japan and build the first vertical farming network in Asia through a new partnership with Konikuniya.
Source: This is money
Photo Courtesy of Infarm