The Checkout: Cox Enterprises Acquires Brightfarms; Apeel Sciences Raises Additional $250 Million

Welcome to The Checkout: an express lane for the weekly news you need to know, always 10 items or less.

Cox Enterprises Acquires Brightfarms

Indoor farming company BrightFarms announced this week it has been acquired by Cox Enterprises, the global company that includes subsidiaries such as Cox Communications and Cox Automotive.

Cox Enterprises first invested in the vertical farming operation in 2018 and gained a majority stake in the operation by 2020. The acquisition is part of Cox’s larger goal of becoming a multi-billion-dollar clean technology business by 2030.

“BrightFarms is a perfect example of our Cox Cleantech strategy – positively impacting the world through profitable, mission-driven businesses,” Steve Bradley, VP of cleantech for Cox Enterprises, said in a press release. “Over the years, our enthusiasm for BrightFarms and the opportunity to transform the industry has increased tremendously, which led us to want to play a larger role in what they’re doing.”

A BrightFarms spokesperson noted that the acquisition would offer the company a path forward that did not require a more “risky gamble” such as going public via SPAC or IPO or having to seek out more investment capital. Under Cox, the company said it plans to expand its growing footprint from 15 acres currently to more than 140 by 2025, which would offer it the means of reaching more than two-thirds of the U.S. population

BrightFarms also disclosed it has acquired New Hampshire-based indoor grower lef Farms. The company plans to expand lef’s existing facility into a 14-acre indoor growing center for distribution to retailers in the New England area. BrightFarms currently operates five hydroponic farms in Virginia, Ohio, Pennsylvania, North Carolina, and Illinois.

For indoor growers, local bases of operations, which either must be built or acquired, are key to their success. Although the farming process is less resource intensive, a significant aspect of their sustainability credentials come from the narrowing the distance crops travel to reach retailers and consumers.

In other news from the indoor farming sector: 80 Acres Farms announced it has raised $160 million from a series B funding round led by General Atlantic. According to a press release, the company plans to use the capital to develop new products and accelerate the expansion of its farms at a global level.

Apeel Sciences Raises Additional $250 Million

Santa Barbara-based food innovation company Apeel Sciences announced it has closed another $250 million capital raise, bringing the company’s current valuation to $2 billion. Previous investor Temasek led the Series E round with additional investment coming from firms such as Mirae Asset Global Investments, GIC and Viking Global alongside other notable individuals such Anne Wojcicki of 23andMe, Susan Wojcicki of YouTube and singer Katy Perry.

The company has raised over $635 million since it was founded in 2012, most recently closing a $250 million round in May 2020.

In the announcement Apeel said it will use the capital to accelerate the distribution of its food-waste reduction technology that extends the shelf-life of produce via a tasteless and odorless plant-based coating.

Earlier this year the company acquired ImpactVision, a San Francisco-based food and supply chain imaging tech company, and also has plans to use the new capital to advance the use of ImpactVision’s supply chain imaging systems. ImpactVision’s technology assists in reducing food waste by optimizing where, when and how produce is routed by capturing and analyzing the state of each individual product as it moves through the supply chain network.

The company said it plans to use the capital to acquire additional companies that can help reduce the amount of food waste that ends up in landfills.

“The pandemic has completely shaken up food retail: people are increasingly buying their fresh produce online, while simultaneously expecting the best in terms of quality and sustainability,” James Rogers, CEO of Apeel Sciences, said in a press release. “We’ll use our latest funding to help our supplier and retailer partners offer a differentiated experience to their shoppers: high-quality produce that’s less likely to go to waste at home.”

Truff Teams Up with Taco Bell

Truffle hot sauce maker TRUFF and fast food restaurant Taco Bell have come together to launch co-branded menu items. The new Loaded TRUFF Nacho Fries and Loaded TRUFF Fries Burrito are being tested now exclusively at the fast food chain’s Newport Beach, California location.

“We are constantly inspired by Taco Bell’s ability to evolve with pop culture and create conversation-generating experiences, which is why the brand immediately stood out as the perfect partner for our first-ever QSR offering,” Nick Guillen, Co-Founder and Co-CEO at TRUFF, said.

Taco Bell’s Loaded TRUFF Nacho Fries are french fries topped are topped with steak, TRUFF-infused nacho cheese sauce, cheddar cheese, tomato and sour cream while the Loaded TRUFF Fries Burrito contains the same ingredients, wrapped in a tortilla. Both items are available until August 31 for $3.49. At month’s end, both brands will evaluate the partnership and success of the menu items to determine if the products should be released to more restaurant locations.

Brave Robot Launches Cryptocurrency Payment Options

Food tech company Brave Robot announced this week that it will now accept a variety of cryptocurrencies as payment on its direct-to-consumer ecommerce platform. Consumers can now purchase the brand’s ice cream, which is made with animal-free whey protein from Perfect Day, with Bitcoin, Bitcoin Cash, DAI, Ethereum, Litecoin or USD Coin through a partnership with Coinbase Commerce.

“With Perfect Day as its core ingredient, Brave Robot is already at the intersection of food and technology,” Jon Spear, VP of marketing for Brave Robot and its parent company The Urgent Company, said in a press release. “A strong advocate of science and change, we are now making the future of ice cream even more accessible via digital currencies. In order to create a better future, we must amplify alternative methods to traditional ways of life, whether it’s food, transportation, ways of working, or currency.”

Brave Robot’s current portfolio consists of eight flavors – Blueberry Pie, Raspberry White Truffle, Vanilla, Buttery Pecan, A Lot of Chocolate, PB N Fudge, Hazelnut Chocolate Chunk and Vanilla ‘N Cookie – that are available online and at retailers such as Sprouts, Harris Teeter, Kroger and Safeway for $5.99 per pint. Last month, the company also collaborated with clothing brand Levi’s, launching a limited edition, co-branded pint to celebrate National Ice Cream Day.