80 Acres Farms and Soli Organic have merged to create a “powerhouse” in US vertical farming with targeted revenues of $200m as a combined business.
Operating under the 80 Acres Farms name, the combined entity will be headquartered in Hamilton, Ohio.
The $200m is expected to be achieved in the first year as a combined entity, according to a statement. However, a spokesperson for 80 Acres Farms said neither of the companies have “historically disclosed revenue” when asked by Just Food to confirm current sales for each business and whether they are profitable.
Soli Organic will keep its brand name, the spokesperson said, adding that the two vertical-farming companies supply US retailers Kroger, Meijer, HEB and Walmart, with “considerable overlap”.
The new business will supply a range of salad greens, microgreens, herbs and tomatoes to convenience stores and the foodservice channel, as well as retailers, amounting to 15-20 million pounds of fresh produce annually, according to the statement.
80 Acres Farms said the merger aims to create “one of the world’s largest and most advanced indoor-farming networks”.
As a singular business, 80 Acres Farms was set up in 2015 by Mike Zelkind and Tisha Livingston. Soli Organic was established in 1989.
Zelkind becomes CEO of the combined company. He said: “This merger unites two top operators that together have the scale, economics, and teams to deliver the results that the industry has been waiting for.
“Both companies have spent decades developing enhanced technology, improving operations, and building winning brands.”
The capital-intensive vertical-farming industry, which grows fresh produce in a controlled indoor environment, has encountered challenges around fund raising and scaling, with many corporate participants struggling to gain profitability. Many have gone out of business.
US-based AeroFarms, for instance, emerged out of bankruptcy two years ago having faced “significant industry and capital-market headwinds”.
Last week, AeroFarms said it had secured new funding.
“We have recently demonstrated that vertical farming can indeed be sustainable, profitable, and produce fresh greens at scale,” CEO Molly Montgomery said in a statement revealing the financing.
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By GlobalDataMeanwhile, the new merger will combine 80 Acres Farms’ GroLoop tech platform with Soli Organic’s agronomic expertise.
The GroLoop platform integrates engineering, biology, and technology to optimise environmental control, yielding higher outputs and quality while reducing costs, 80 Acres Farms explained.
Walter Robb, current co-chairman of Soli Organic, and a board member of the combined company, said: “Given recent trade volatility, indoor agriculture is playing an increasingly important role for retailers.
“The combined company checks all the boxes: great product quality, increased product portfolio, supply chain resilience, and enhanced customer choice through both vertical farming and field-grown organic products.”
As well as a co-founder of 80 Acres Farms, Livingston is CEO of Infinite Acres, the company’s tech-focused subsidiary.
“GroLoop was built to adapt and scale across crops, climates, and facility types,” Livingston said. “By combining it with Soli’s reach, experience, and knowledge in agronomy, we’re able to move faster, work smarter, and deliver more value across the entire supply chain.”
