Edible Garden AG Incorporated operates as a controlled environment agriculture (CEA) farming company. The company uses traditional agricultural growing techniques together with technology to grow fresh, organic food, sustainably and safely while improving traceability.
The company uses the controlled environment of traditional greenhouse structures, such as glass greenhouses, together with hydroponic and vertical greenhouses to sustainably grow organic herbs, lettuces and floral products. In it...
Edible Garden AG Incorporated operates as a controlled environment agriculture (CEA) farming company. The company uses traditional agricultural growing techniques together with technology to grow fresh, organic food, sustainably and safely while improving traceability.
The company uses the controlled environment of traditional greenhouse structures, such as glass greenhouses, together with hydroponic and vertical greenhouses to sustainably grow organic herbs, lettuces and floral products. In its hydroponic greenhouse, the company grows plants without soil. Instead of planting one row of lettuce in the ground, by using a vertical greenhouse, the company can grow many towers of lettuce in the same area by planting up instead of planting across. Growing these products sustainably means that the company avoids depleting natural resources in order to maintain an ecological balance, such as by renewing, reusing and recycling materials in order to lower the overall one-time use of materials.
The company’s controlled greenhouse facilities allow it to grow consistent quality herbs and lettuces year-round, first by eliminating some of the variability of outdoor farming with its CEA techniques, and second by leveraging its proprietary software, GreenThumb. In addition to using hydroponic and vertical greenhouse systems, the company uses a closed loop system in its greenhouses. In it closed loop system, the company also cycles water back into the system that has been collected through reverse osmosis. When compared to conventional agriculture, the company’s closed looped systems and hydroponic methods use less land, less energy and less water (than legacy farms), thus conserving some of the planet’s limited natural resources. The company’s advanced systems are also designed to help mitigate contamination from harmful pathogens, including salmonella, e-coli and others.
The company has also developed patented software called GreenThumb that assists in tracking plants through its supply chain. Utilizing its GreenThumb software to track the status of the company’s plants as they grow and move throughout the greenhouse allows it to add a layer of quality control due to the frequent monitoring of the growing process, leading to improved traceability. In this context, traceability means being able to track a plant through all stages of production and distribution. In addition to improving traceability, GreenThumb helps the company better manage the day-to-day operations of its business. GreenThumb is a web-based greenhouse management and demand planning system that does the following: integrates in real-time with its cloud business software suite for monitoring daily sales data; generates reports by category, product, customer, and farm to allow it to analyze sales, trends, margins and retail shrink (spoiled product); provides dynamic pallet mapping for packout, which enables it to more efficiently ship its products; utilizes a proprietary algorithm that uses year-over-year and trending sales data to develop customer specific and aggregate product specific forecasting for its greenhouses; aggregates all greenhouse activity input to provide real-time inventory and availability reports of all products in its greenhouses; manages its online ordering system with user controlled product availability based upon greenhouse inventory; provides a route management system for coordinating the logistics of its direct store delivery program; and tracks all production activities at greenhouses, including sowing, spacing, dumping, spraying, picking and packing, using hand held devices.
The company also uses its GreenThumb software to help monitor the quality of its products, and it has dedicated quality assurance and quality control personnel that check and monitor its products. The company has customer service personnel that answer any questions the consumers of its products may have, and it regularly asks for feedback from its customers on the quality of its products. The combination of the GreenThumb software, quality assurance and control processes (including compliance with food safety standards), and feedback from consumers and purchasers holds the company accountable for maintaining the quality of its herbs and lettuce.
The company focuses its efforts on producing its herbs and vegetables in a sustainable manner that will reduce consumption of natural resources, by recycling water in its closed loop system and using LED lights instead of conventional lightbulbs to accelerate crop growth and yield, when necessary. In addition, the inventory management component of GreenThumb allows the company to manage inventory levels, order quantities and fill rates while maximizing truck loads. This means that the company is better able to control shipping its products in full truck loads, thus eliminating multiple deliveries and decreasing the excess emission of greenhouse gases that would result from many partially full trucks delivering its products.
The company has food safety certifications from Primus GFS (Primus), a Global Food Safety Initiative (GFSI) certification program, the United States Department of Agriculture (USDA) for organic products, and some of its products are verified as non-genetically modified (non-GMO) by the non-GMO Project. The company is licensed under Perishable Agricultural Commodities Act (PACA) to operate its business. The company voluntarily complies with the Hazard Analysis Critical Control Point (HACCP) principles established by the U.S. Food and Drug Administration (FDA).
Primus annually audits the company’s growing process and entire food safety management system to ensure that its process and products meet the standards established by the GFSI. The company values this certification because its customers require purchasing products from producers who are GFSI certified. When the company undergos the GFSI audit, Primus audits the following: standard operating procedures and their documentation; food safety testing (biological hazards) by an ISO 17025 accredited lab; water testing by an ISO 17025 accredited lab; quality control processes; personnel health, hygiene and safety; sanitation programs; mock recalls/products on-hold process; internal auditing system for organic, GFSI, non-GMO and HACCP certifications and verifications; records retention; food defense/food fraud; supplier approval program; pest management program; and visual inspection of growing and packing processes.
To maintain its USDA Organic certification, the company must submit its farm and handling plans annually; to an annual inspection and audit of its greenhouse and how it handles aspects of its business; to review of its organic documentation and records retention; to review and testing of its water usage and irrigation systems, harvest and post-harvest processing; and supplier monitoring and control.
In addition, the company must: use Organic Materials Review Institute (OMRI)-approved inputs, such as fertilizer, pesticides, disease management and media; use organic in-house seedling production; use organic pest management practices; use organic crop management techniques; perform nutritional deficiencies testing; perform microbiological water testing; conserve natural resources and promote biodiversity; and maintain organic integrity (prevent conventional crops from contaminating organic crops).
Some of the company’s products are verified as non-GMO by the non-GMO Project. To have a product verified by the non-GMO Project, the company submit to an annual review process of the relevant products. The HACCP principles require that the company submits to USDA audits annually.
Products
The company offers more than 79 stock keeping units (SKUs) and expects to further cross sell products across the company’s supermarket partners to meet their demand. These products include: 10 types of individually potted, live herbs; 37 types of cut single-herb clamshells; 4 specialty herb items; butterhead lettuce; 6 garden salad kits; wheatgrass; hydro basil; 12 vitamin and protein powder products; 4 fermented hot sauces; and 3 chili oil products.
The packaging the company uses for its produce leverages the latest technology to reduce plastics, extend the shelf life of its products, and reduce retail shrink - all leading to a reduced carbon footprint by reducing waste. The packaging the company uses for its produce features bio-based (sugar cane) sleeves. Using this material, the company is able to reduce its use of plastic in its business. The company uses herb bags that have micro-perforations that allow ethylene gas to escape from the product packaging. Ethylene gas accelerates spoilage of herbs and lettuce. By allowing this gas to escape, the company is able to extend the shelf life of the product while reducing the likelihood that its customers experience retail shrink because they have to throw its products in the garbage.
More recently the company has expanded its product line to include nutraceuticals and other food products, as well as vitamins, plant and whey proteins, and other products utilizing next-generation plant ingredients grown and sourced using sustainable methods. The ocmpany’s protein powder is sold under the Vitamin Way brand and is available in chocolate, vanilla, strawberry, and cookies n’ crème flavors, while its Vitamin Way collagen powder is available in chocolate and vanilla. The ocmpany’s Vitamin Way shake product is organic & vegan plant-based, dairy-free and contains 20g of non-GMO, gluten-free, organic pea, brown rice & pumpkin proteins. The company’s offerings include mums, marigolds and other floral products. These plants were delivered to big-box stores throughout its distribution network.
Customers
The company’s products are sold at supermarket stores and food distributors across the Northeast, Midwest and Mid-Atlantic regions of the country. Some of the supermarkets that sell the company’s products include Walmart, Target, Meijer, Wakefern Food Corporation/ShopRite, King Kullen, D’Agostino’s, Tops Friendly Markets, and H-Mart. The company also services a large number of food distributors. This market segment allows the company greater penetration with smaller local and regional supermarkets and the food services business.
In February 2024, the company entered into agreements with Meijer to supply and sell products to Meijer until December 2026 (the Supply Agreements). Under the Supply Agreements, the company will sell fresh cut herbs, including basil, bay leaves, chives, cilantro, dill, mint, oregano, rosemary, sage, thyme; hydroponic basil; and potted herbs, including basil, chives, cilantro, mint, oregano, parsley, rosemary, sage, thyme, wheatgrass; in quantities and delivery schedule requested by Meijer at prices per unit set in advance. The Supply Agreements will expire on December 31, 2026.
Other than the Supply Agreements, the company sells products to its customers on a purchase order basis, with no spend or purchase commitments, in the ordinary course of business. The company and its customers enter into purchase orders on a daily basis.
Production and Properties
Distribution
Edible Garden utilizes advanced, sustainable, environmentally controlled indoor agriculture to grow and process organic herbs and lettuces. Through its extensive distribution platform and proprietary predictive modeling, the company picks, packs and ships to big box retailer’s distribution centers in its network. The company distributes its products through more than 50 retail partners including national big box retailers, regional grocery stores, distributors, restaurants and local purveyors.
The company’s growing and distribution plans are designed to get its locally grown products to its retail partners and consumers as soon as possible after harvest. The company wants to make sure that its products arrive as fresh, undegraded and nutrient rich as when they were harvested. The company holds its transportation-related assets and manage the distribution of its products through its wholly-owned subsidiary, EG Transportation, LLC. This entity owns and leases the delivery vehicles the company uses to distribute products and holds the liability insurance needed for the transportation aspects of its business.
Competition
The company’s main competitors are Gotham Greens, Bright Farms, Bowery Farms and Plenty.
Customer Relationships and Brand: The company’s herbs and lettuce product portfolio is sold through its supermarket partners including Walmart, Target, Meijer, Wakefern Food Corporation/ShopRite King Kullen, D’Agostino’s, Tops, H-Mart, and food distributors.
Growth Strategy
The company’s business plan is to develop, own and operate commercial greenhouses across North America through a combination of organic and acquisitive growth. Presently and in the near term the company’s greenhouse operations will continue to grow herbs and lettuces in conjunction with developing finished goods/consumer products that communicate its brand promise. The company plans to locate farms with easy access to distribution centers and major population demographic centers and to sell products into established supermarkets partners and distributors.
Intellectual Property
The company relies on a combination of trademark laws, trade secrets, confidentiality provisions, and other contractual provisions to protect its proprietary rights, which are primarily its inventions, brand names, marks, and proprietary pods and seeds. Edible Garden owns trademarks, has two pending patent applications, and three issued patents in the United States. The issued patents include claims related to greenhouse management software and systems (GreenThumb) and are expected to remain in force until November 2040, provided that all required maintenance fees are paid. One of the two pending patent applications is a recently filed continuation patent application related to greenhouse management software and systems. The other pending patent application is related to automatically watering display stands for herbs and other vegetation. Should this pending patent application be granted, the design patent will remain in force until February 2035, provided that all required maintenance fees are paid for the utility patent.
Regulatory Compliance
As a producer and distributor of food products, the company is subject to the laws and regulations in the jurisdictions where its facilities are located and where are products are distributed. In particular the company is subject to the Federal Food, Drug and Cosmetic Act, as amended by the Food Safety Modernization Act in 2011 (the FSM Act), which is enforced by the FDA.
History
Edible Garden AG Incorporated was founded in 2020. The company was incorporated in 2020.
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