Apeel Sciences Company Profile

Background

Apeel Sciences, founded in 2012 by Dr. James Rogers, is dedicated to combating global food waste through innovative, plant-derived technologies. The company's mission is to extend the shelf life of fresh produce, thereby reducing waste and enhancing food security. By creating an invisible, edible coating from natural plant extracts, Apeel aims to preserve the freshness of fruits and vegetables without the need for refrigeration or preservatives. This approach not only addresses significant inefficiencies in the food supply chain but also promotes sustainability by minimizing environmental impact.

Key Strategic Focus

Apeel Sciences focuses on developing and commercializing its proprietary plant-based coating technology to extend the shelf life of perishable produce. The company targets a broad range of fruits and vegetables, including avocados, citrus fruits, berries, stone fruits, and asparagus. By slowing down the processes of oxidation and water loss, Apeel's technology allows produce to stay fresh two to three times longer, reducing food waste at various stages of the supply chain—from growers to retailers to consumers. This strategic focus not only enhances product quality but also opens new market opportunities by enabling longer transportation times and reducing reliance on refrigeration.

Financials and Funding

Apeel Sciences has secured substantial funding to support its growth and technological advancements. In August 2018, the company raised $70 million in a Series C funding round led by Viking Global Investors, with participation from Andreessen Horowitz, Upfront Ventures, and S2G Ventures. This round also saw Walter Robb, former co-CEO of Whole Foods Market, joining Apeel's Board of Directors. In May 2020, Apeel raised an additional $250 million in a funding round led by GIC, with contributions from Viking Global Investors, Upfront Ventures, Tao Capital Partners, Rock Creek Group, and notable individuals such as Oprah Winfrey and Katy Perry. These investments have been utilized to expand the company's team, enhance international operations, and further develop its product offerings.

Pipeline Development

Apeel Sciences has successfully commercialized its technology across various produce categories. The company's plant-based coating is applied to avocados, citrus fruits, berries, stone fruits, and asparagus, effectively extending their shelf life and reducing spoilage. Retail partners, including major chains like Kroger, have reported significant reductions in shrinkage and increased sales due to the extended freshness of Apeel-treated produce. The company continues to explore applications for other perishable items, aiming to broaden its impact on reducing food waste globally.

Technological Platform and Innovation

Apeel's core innovation lies in its development of an invisible, edible coating derived from natural plant extracts. This coating forms a microclimate around the produce, regulating the exchange of gases and moisture to slow down spoilage processes. The technology is colorless, odorless, and tasteless, ensuring that the natural qualities of the produce are maintained. By utilizing materials found in the skins and peels of plants, Apeel's solution is both sustainable and safe for consumption. The company has also expanded its technological capabilities through the acquisition of ImpactVision in May 2021, integrating imaging and machine learning technologies to assess produce freshness and quality more accurately.

Leadership Team

Dr. James Rogers: Founder and CEO, with a background in materials science, leading the company's vision and technological development.

Walter Robb: Board Member and former co-CEO of Whole Foods Market, providing strategic guidance and industry expertise.

Luiz Beling: Chief Executive Officer, overseeing the company's operations and strategic initiatives.

Leadership Changes

In April 2024, Luiz Beling was appointed as the Chief Executive Officer of Apeel Sciences, succeeding Dr. James Rogers in the operational leadership role. Dr. Rogers continues to serve as the company's Founder and remains actively involved in guiding its mission and technological advancements.

Competitor Profile

Market Insights and Dynamics

The global food preservation market is experiencing significant growth, driven by increasing awareness of food waste and the demand for sustainable solutions. Innovations in natural preservation methods are gaining traction, with companies developing technologies to extend the shelf life of perishable goods without relying on traditional preservatives or refrigeration.

Competitor Analysis

Apeel Sciences operates in a competitive landscape with several notable companies:

Cellink: Develops bioprinting technologies for 3D printing human organs and tissue models, primarily serving the pharmaceutical and cosmetic industries.

Naturex: Offers specialty plant-based natural ingredients, focusing on the food and beverage sector.

S&W Seed Company: Provides expertise in agricultural breeding, production, and processing, particularly in the alfalfa and stevia industries.

Bakkafrost Scotland: Produces and sells Scottish seafood products, emphasizing sustainable aquaculture practices.

Upside Foods: Focuses on producing cultivated meat products, aiming to offer sustainable alternatives to traditional meat.

While these companies operate in related sectors, Apeel's unique approach to food preservation through plant-based coatings sets it apart in the market.

Strategic Collaborations and Partnerships

Apeel Sciences has established significant partnerships to enhance its market presence and technological capabilities:

Retail Partnerships: Collaborations with major retailers such as Kroger, Harps Food Stores, and international partners like Edeka in Germany and Salling Group in Denmark have facilitated the widespread adoption of Apeel's technology.

Acquisition of ImpactVision: In May 2021, Apeel acquired ImpactVision, a company specializing in imaging and machine learning technologies. This acquisition enables Apeel to provide food suppliers with quantifiable data on produce freshness, ripeness, and nutritional density, enhancing quality control and reducing waste.

Operational Insights

Apeel Sciences' strategic initiatives have led to significant environmental and economic impacts:

Food Waste Reduction: In 2023, Apeel's technology prevented over 60 million pieces of fruit from going to waste, demonstrating its effectiveness in