The berry supplier agrovision has raised a $100 million equity financing round led by Food Capital and backed by new and existing investors, including co-founder from Oaktree Capital Management, Steve Kaplan, giving it a valuation in excess of $1 billion.

The round follows a period of “meteoric growth” at the vertically integrated superfruit company, which has nearly tripled sales in the past three years, and will boost global distribution and accelerate product innovation.

“Delivering tastier superfruits year-round requires end-to-end innovation, optimizing every layer of technology, from genetics and systems to artificial intelligence,” said Agrovision co-founder and CEO Steve Magami, who founded the company in 2012 with an initial focus on the cultivation, distribution and marketing of blueberries from Peru.

The Los Angeles-based company has since expanded its growing areas to Mexico, Chile, India, Morocco, the United States and China, supplying blueberries, raspberries, blackberries and cherries to major supermarkets, club stores and independent retailers in high-end in the United States, Asia, the Middle East and Europe.

Most of Agrovision's products retail under the Fruitist brand, which is associated with a consistent, high-quality experience, says CEO Steve Magami. «We don't want consumers to play Russian roulette with their berries. "We want consumers to have a good product, a good experience every time they buy." Image credit: Agrovision

Berries for LPG-1 users?

Berries, which have been gaining popularity in recent years, are also getting a boost from users of GLP-1 drugs such as Ozempic and Wegovy, the company said: "The impact of GLP-1 has caused a notable change in behavior of the consumer, with a 20% increase in purchases of fresh products by users with a prescription.

“We have seen a change in the way people invest in their health and spend in stores,” added Ben Belldegrun, co-founder and managing partner of Aliment Capital. “Agrovision is truly the 'right place at the right time' with its unique model of owning the entire range, allowing it to guarantee its customers high-quality superfruits all year round, regardless of their geographical location.”

Technology-based approach

In recent years, Agrovision has invested more than $400 million in global expansion, new genetics, artificial intelligence and other technologies, and recently partnered with Seattle-based startup RipeLocker to deploy its low-atmosphere vacuum chambers. patented to extend the life of berries throughout its supply chain, said to AgFunderNews the co-founder and CEO Steve Magami.

" We love this technology and its founders. It's a great example of a proven technology where we've shown we can double the shelf life of a raspberry.

In the United States, Agrovision supplies berries under the Fruitist brand to major retailers such as Costco, Giant, Publix, Sprouts, Trader Joe's, Wakefern, Walmart and Whole Foods. In China, Agrovision markets its blueberries to consumers under the Big Skye brand. Image credit: Agrovision

“We are still working out the logistics, but we are quite optimistic that we will launch it commercially next year.”

AI is also an “important area for us,” he said. “We are working on what we believe will be an industry first in terms of optimized harvest prediction and we hope to have news on this to share in the coming months.”

As for genetics, he said, the focus is on optimizing flavor and improving resilience in a warming climate.

“For a long time, the industry moved too far away from flavor and focused more on production and yield, while we have focused on flavor, but using technology to reach a level of production such that the agricultural aspect also works. But after taste and the eating experience, the second most important thing for us is climate resilience, so we are planting varieties with a higher level of climate resilience, which are more heat tolerant.”

He added: “Countries that were important blueberry producers in the past like Argentina are no longer even on the map today, whether due to climate, water or labor availability issues, so we are going to see a movement towards new regions. of cultivation that are more optimal.”

Huge growth is coming

In its next phase of growth, the company will invest in establishing new growing regions in Egypt and Indonesia and expanding its operations in markets such as China, Magami told AgFunderNews .

He wouldn't confirm media reports from earlier this year that referenced $300 million in revenue, but said the figure "wasn't far off... we're growing very fast, so that number will seem very small in the future." A near future".

He added: “When we make an investment in production, it generally takes about five years to reach full maturity, depending on the location. And we will see volumes increase as those plantations mature in the coming years, so we have a vision of enormous growth to come.”

When asked about the ultimate goal for investors, he said: “We have investors who are aligned with our vision and our mission of building a generational company that will make the world a healthier place. “They are not looking for a quick exit, which has given us a real advantage in being able to build this business for the very long term.”