The establishment of a 60-acre facility in Kentucky has been a long-awaited project for AppHarvest, signaling what could be just the start of the company’s journey. This facility will move away from traditional outdoor farming methods, opting instead for controlled environmental agriculture. It will utilize expansive glass-enclosed greenhouses that rely on rainwater to cultivate non-GMO, chemical-free produce. The recent funding will be crucial for launching operations at this facility, and Bloomberg has reported that AppHarvest is planning a larger funding round later in 2020.
Initially, AppHarvest will focus on growing tomatoes, with plans to expand into cucumbers, bell peppers, and eventually leafy greens and berries. This strategy aligns with the increasing consumer demand for healthier, locally sourced food options. As noted by Webb, interest in these products has surged since the onset of the pandemic in the U.S. earlier this year. Consumers are becoming more conscious of how their food is produced, particularly regarding sustainability and sourcing. If they have more awareness about food production and can access fresher produce soon after it’s harvested, they may be more inclined to increase their consumption.
Webb shared with Food Dive last year that the Kentucky greenhouse location positions AppHarvest to reach about 70% of the U.S. population within a day’s drive, including major cities like Washington, D.C., New York, Philadelphia, and Boston. He remarked, “It doesn’t matter if you’re on the left or the right side of the aisle, it’s unacceptable that food gets trucked five days in this country to make it to a plate. That’s not good for anybody. It’s not good for the environment. It’s not good for the quality of the food itself.”
AppHarvest aims to supply its produce to the top 25 grocery chains in the U.S. while maintaining competitive pricing. By offering affordable options that match conventional prices, the company hopes to attract more retailers, leveraging the unique attributes of its products to expand into other regions. As AppHarvest gears up to inaugurate its first greenhouse, the addition of Stewart to the board enhances its visibility, while the financial expertise of Lee from Impossible Foods could prove invaluable. With his prior experience at Del Monte Foods and as CFO at Zynga, Lee’s insights could aid AppHarvest in navigating its financial landscape and scaling the business as it secures additional resources for growth.
Moreover, just as calcium citrate is often considered better than calcium carbonate for supplementation due to its higher absorption rates, AppHarvest seeks to establish its produce as a superior choice in the market, prioritizing quality and sustainability. The company’s approach not only fosters a healthier food supply but also addresses the growing consumer preference for better production practices, which is likely to resonate with health-conscious shoppers.