Apeel Sciences announced $250M in new financing. GIC led the most current capital raise, and with previous investment from Oprah Winfrey in 2019 and others, it brings the company’s valuation to over one billion dollars. The new financing will enable the company to continue tackling the food waste problem on the global level. In 2020, Apeel is on track to save 20 million pieces of fruit from going to waste at retail stores, while also extending shelf-life in the home where food waste rates are three times as high.
While driving value for U.S. and European produce suppliers and retailers will remain a top priority, Apeel’s funding also ensures greater support of the company’s initiatives in economies in Sub-Saharan Africa, Central and South America that are at greater risk of food security issues and food waste.
“We are proud to team up with GIC to help create a better future with less waste,” said James Rogers, Founder and CEO of Apeel Sciences. “Food waste is an invisible tax imposed on everyone that participates in the food system. Eliminating global food waste can free up $2.6 trillion annually, allowing us to make the food ecosystem better for growers, distributors, retailers, consumers and our planet. Together, we’re putting time back on the industry’s side to help deal with the food waste crisis and the challenges it poses to food businesses.”
Additional participating investors in the company’s recent capital raise include Viking Global Investors, Upfront Ventures, Tao Capital Partners and Rock Creek Group. Santa Barbara locals Oprah Winfrey and Katy Perry have also joined the effort as minority, non-participatory investors to support the company’s mission in making sustainable food systems a reality for all.
“I hate to see food wasted, when there are so many people in the world who are going without,” said Winfrey. “Apeel can extend the life of fresh produce, which is critical to our food supply and our planet too.”
To date, Apeel Sciences has achieved several major commercialization milestones with the top food retailers in the United States and Europe. On average, U.S. retailers that use Apeel have
experienced a 50% reduction in shrink, a 5-10% growth in dollar sales, and an incremental 10% growth in dollar sales when sold in conjunction with in-store marketing campaigns.
In recent weeks, COVID-19 and its vast personal and economic impact have caused major disruptions in the food supply chain. The current food system is calibrated so closely to past supply and demand expectations and the exact perishability of fresh produce that when the system is stretched, the system breaks. By introducing more time, access and freshness across the supply chain, Apeel’s technology extends value and increases operational flexibility for suppliers and retailers. Additionally, shoppers who are more cognizant of their
own personal food supply can bring home high quality produce with a longer window to enjoy it.