BrightFarms has secured US$30.1m in financing to “dramatically expand” the markets it can reach with its locally grown produce.
The US firm said the investment comes from equity group Catalyst Investors as well as existing investors WP Global Partners and NGEN Partners.
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The company specialises in the “controlled environment local produce industry”. It supplies retailers with baby greens and tomatoes from its greenhouses near Chicago, Washington D.C. and Philadelphia. Customers include Ahold Delhaize-owned Giant Food of Landover and Roundy’s.
CEO Paul Lightfood said the cash injection will allow the company to expand into additional markets throughout the US. “Having the backing of Catalyst Investors further validates BrightFarms’ innovative solution for providing consumers with fresh, local, sustainable produce at a commercial scale. This investment will enable us to dramatically expand our markets and provide more Americans with fresh, delicious, locally grown produce on a year-round basis.”
BrightFarms claimed it is pioneering the future of local, low-impact farming by building greenhouse farms that create jobs, reduce food miles and reduce the environmental impact of the food supply chain. The company said its greenhouses use 80% less water, 90% less land and 95% less shipping fuel than traditional suppliers. All BrightFarms produce is pesticide-free and non-GMO.
“Catalyst was attracted to BrightFarms because we believe they are the best in the industry, and because we like their unique business model of signing long-term, fixed-price contracts to guarantee a steady, year-round supply of fresh, local, pesticide-free and GMO-free produce to major metro markets,” said Tyler Newton, partner and research director at Catalyst Investors. “Produce grown in controlled environments will be a key part of the sustainable food chain of the future, requiring less land, water, energy and time for transportation than traditional agriculture. We look forward to helping BrightFarms lead the way.”
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By GlobalDataGordon Reid, president of Giant Food of Landover, Maryland, said, “Our partnership with BrightFarms and our joint efforts to provide everyone in the local community with access to fresh, healthy, local produce means we are able to provide exceptional quality and value.”
Steve Jarzombek, vice president of produce at Roundy’s, said: “The opportunity to provide our consumers with high quality locally grown produce year-round, delivered within 24 hours of harvest, is one of the many things that attracted us to BrightFarms. Our greenhouse in Chicagoland opened in July and demand is growing significantly. Consumers can truly taste the difference, not to mention it’s a huge win for the environment.”
