Key Takeaways
- AeroFarms celebrates one year of partnership with Costco, offering microgreens in 250 warehouses across the U.S.
- A new seasonal Micro Broccoli product will debut during Costco’s Healthy Habits month in January.
- AeroFarms successfully exited Chapter 11 bankruptcy in September 2023, strengthening its financial position.
- The Danville, Virginia farm remains the company’s flagship operation, focusing on profitability and innovation.
- AeroFarms is the fastest-growing packaged salad greens brand in the U.S., with products available in over 2,000 retail locations.
What is the significance of AeroFarms’ partnership with Costco?
AeroFarms (Profile) is celebrating the first anniversary of its partnership with Costco. Over the past year, its Micro Rainbow Mix has been a staple in 250 Costco warehouses nationwide. To further strengthen its product lineup, AeroFarms is introducing a seasonal Micro Broccoli product, available during January’s Healthy Habits month in select Costco locations.
Dane Almassy, Senior Vice President of Sales & Marketing at AeroFarms, emphasized the collaboration’s importance: “Costco has been a tremendous partner in building this high-growth microgreens segment within the leafy greens category. We are proud to offer Costco a year-round supply of our microgreens from a farm that is weather-resilient and uses significantly fewer resources than traditional farming methods.”
How did AeroFarms strengthen its financial position?
In September 2023, AeroFarms emerged from Chapter 11 bankruptcy after completing a restructuring process. This restructuring, led by Grosvenor Food & AgTech and supported by Doha Venture Capital, has fortified AeroFarms’ financial position. The company is now focused on its flagship farm in Danville, Virginia, and has streamlined operations by cutting non-essential projects.
The Danville farm, which began operations in September 2022, has seen steady revenue growth and remains critical to AeroFarms’ path to profitability. The ramp-up of the Danville facility is expected to conclude by the end of 2023.
Molly Montgomery, Acting CEO and Executive Chairperson, remarked: “As we face the mounting challenges of climate change and food insecurity, we need to rethink our global food supply chain. AeroFarms leverages proprietary technology to deliver fresh products less vulnerable to climate-related threats.”
Why are microgreens a key focus for AeroFarms?
Microgreens have become a popular choice among consumers due to their robust flavor, versatility, and higher nutrient density compared to traditional greens. AeroFarms leads this market, holding over 70% retail market share in the U.S.
Research highlights that microgreens can contain 5x to 40x more phytonutrients and vitamins than mature plants, making them a nutrient-packed addition to meals. Products like AeroFarms’ Micro Rainbow Mix and Micro Broccoli are meeting growing consumer demand in Costco and other major retailers such as Whole Foods, Ahold Delhaize, and Harris Teeter.
What makes the company’s technology unique?
AeroFarms operates a cutting-edge indoor vertical farm in Danville, Virginia, utilizing proprietary aeroponics, robotics, and AI. These advanced systems allow the company to grow crops with 90% less water and 230x less land than traditional farming methods. This technology supports consistent, year-round production while maintaining high product quality and minimizing environmental impact.
The farm holds certifications for USDA Good Agricultural Practices, SQF Level 2 Good Manufacturing Practices, Non-GMO Project Verification, OU Kosher, and the CEA Food Safety Seal, ensuring consumer trust in its products.
What’s next for AeroFarms and Costco?
The partnership between AeroFarms and Costco represents a growing trend toward sustainable and nutrient-rich food options. As AeroFarms completes the ramp-up of its Danville facility and introduces new products like Micro Broccoli, the collaboration is expected to further strengthen the company’s market presence and profitability.
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