Apeel Sciences, recently honored as a WEF Technology Pioneer and a CNBC Disruptor 50, announced $70 million in new financing led by Viking Global Investors with Andreessen Horowitz, Upfront Ventures, and S2G Ventures, with participation from others. Additionally, Walter Robb, former co-CEO of Whole Foods Market, will join Apeel Sciences’ Board of Directors and advise the company as it scales to meet demand from U.S. and international fresh food suppliers and retailers.
“We were looking for partners who saw the long-term vision for Apeel fruits and vegetables in the U.S. and also abroad in countries that don’t necessarily have the cold chain infrastructure,” said James Rogers, Founder and CEO of Apeel Sciences. “We’re honored to have Viking Global Investors and Walter Robb as new partners on our journey to help the fresh food supply chain gain efficiencies that will help put a stop to food waste and enable better quality food to come to market.”
The financing comes after Apeel Sciences crossed major commercialization milestones in June, when the company introduced Apeel avocados at Costco and Harps Food Stores in the U.S. Since Apeel avocados were introduced at Harps Food Stores in May, Harps Food Stores has experienced a 65 percentage-point increase in margin and a 10% lift in sales across hass avocados category — the first evidence of food waste reduction driving margin and profitability for fresh food suppliers and retailers.
Apeel Sciences’ new funding will be leveraged to accelerate the company’s scale-up in response to supplier and retailer demand for programs across avocado, citrus, berry, stone fruit, and asparagus categories. Additionally, Apeel plans to grow its team based out of its 105k square-foot facility in Santa Barbara, establish satellite facilities to service partners in U.S. growth regions, and continue its focus on developing new plant-based solutions with a wide range of applications across perishable categories.
“A great next generation entrepreneur has come along using food itself to naturally extend the life of food, heralding a new era of possibility and promise,” said Walter Robb, former co-CEO of Whole Foods Market. “James and the team at Apeel Sciences are amazing and I am truly excited to be part of their efforts.”
"As Apeel products continue to hit the shelves, the retail world is now beginning to experience what was clear from day one, which is that Apeel is a product with the potential to change the world," said Yves Sisteron, Founder and Managing Partner of Upfront Ventures, which first invested in Apeel Sciences in 2014. "We've been continually impressed with the scientific innovation coming from James Rogers and the Apeel Sciences team, and we're thrilled to continue supporting them on their mission."
The U.S. retail food sector generates eight million tons of waste annually in distribution centers and stores, or $18 billion a year in lost value for retailers. What’s more, Americans throw away more than 400 pounds of food per person, costing a household of four an average of $1,800 annually. Apeel is the first plant-derived solution for extending produce shelf life, which dramatically reduces food waste at the supplier, retailer, and consumer levels.
Contact:
Michelle Linn
Apeel Sciences