AppHarvest, Inc. (AppHarvest), together with its subsidiaries, operates as an applied agricultural technology company in Appalachia.
The company engages in developing and operating high-tech indoor farms with robotics and artificial intelligence to build a reliable, climate-resilient food system. The company’s farms are designed to grow produce using sunshine, rainwater and up to 90% less water than open-field growing, all while producing yields up to 30 times that of traditional agriculture an...
AppHarvest, Inc. (AppHarvest), together with its subsidiaries, operates as an applied agricultural technology company in Appalachia.
The company engages in developing and operating high-tech indoor farms with robotics and artificial intelligence to build a reliable, climate-resilient food system. The company’s farms are designed to grow produce using sunshine, rainwater and up to 90% less water than open-field growing, all while producing yields up to 30 times that of traditional agriculture and preventing pollution from agricultural runoff. The company combines conventional agricultural techniques with cutting-edge technology, including artificial intelligence and robotics, to improve access to nutritious food, while farming more sustainably, building a domestic food supply, and increasing investment in Appalachia.
Strategy
By insulating its food production system from seasonal and weather constraints, the company’s controlled environment agriculture (CEA) facilities are expected to produce up to 30 times more fruits and vegetables compared to traditional open-field agriculture, while also using up to 90% less water per pound harvested. Given its location within one day’s drive of nearly 70% of the U.S. population, the company is positioned to use significantly less fuel to transport its products, compared to fruits and vegetables shipped from the southwestern United States, especially California, and Mexico.
CEA Facilities
The company operates four controlled environment agriculture facilities which include various suite of cutting-edge technology.
AppHarvest Morehead
AppHarvest Morehead, which partially opened in October 2020, is among the world’s largest indoor farms at 60 acres (approximately 2.8 million square feet) and was the company’s first operating CEA facility. The Morehead farm currently grows beefsteak tomatoes, tomatoes on the vine, and snacking tomatoes.
AppHarvest Berea
AppHarvest Berea, which became operational in October 2022, is 15-acres (approximately 654 thousand square feet) and features a cutting-edge touchless growing system that is automated from pre-seeding to packaging including autonomous harvesting and onsite washing to help improve both food safety and efficiency for the Queen of Greens washed-and-ready-to-eat salad brand. Pursuant to the terms of the Sale-Leaseback Transaction, as of December 2022, the company leased AppHarvest Berea from Mastronardi Berea LLC, a joint venture between Mastronardi Produce Limited, and COFRA Holding.
AppHarvest Somerset
AppHarvest Somerset began operating in November 2022, and at 30-acres, is expected initially to primarily grow strawberries, alternating seasonally with cucumbers. AppHarvest Somerset features a blast chiller that rapidly lowers the temperature of harvested strawberries prior to packaging to extend shelf life.
AppHarvest Richmond
AppHarvest Richmond began operating in December 2022 and at 60-acres is similar in size to AppHarvest Morehead. Half of the farm was planted in December 2022, with the second half expected to be planted in 2023. The first harvest from Richmond began in January 2023.
Strategic Partnerships
Mastronardi Produce Limited (Mastronardi)
Mastronardi is the company’s exclusive marketing and distribution partner for all fresh fruits and vegetables grown in Kentucky and West Virginia, including tomatoes, cucumbers, peppers, berries, and/or all salad greens that meet certain quality standards. Mastronardi is a leading marketer and distributor in North America of tomatoes, peppers, cucumbers, berries, and salad greens. Mastronardi has an extensive and long-established retail network and is nationally recognized under the primary SUNSET brand and other brands, including Campari, Angel Sweet, Flavor Bombs, Sugar Bombs tomatoes, Queen of Greens washed-and-ready-to-eat salad packs and WOW berries. The company’s produce is available for sale in the produce aisles of some grocers.
Pursuant to its agreement with Mastronardi (the Mastronardi Agreement), Mastronardi is the sole and exclusive marketer and distributor of all tomatoes, cucumbers, peppers, berries and salad greens produced at its CEA facilities that meet certain quality standards (collectively, the Products). Under the terms of the Mastronardi Agreement, the company is responsible for growing, producing, packing and delivering all products to Mastronardi, and Mastronardi is responsible for marketing, branding, and distributing its products to its customers.
Trademarks and Other Intellectual Property
The company owns and has registered with the U.S. Patent and Trademark Office trademarks and patent applications that are important to its business, including its principal trademark, APPHARVEST, and has several additional trademark applications pending, as well.
Government Regulation
The company is subject to laws and regulations administered by various federal, state and local government agencies in the United States, such as U.S. Food and Drug Administration (FDA), the Federal Trade Commission (FTC), the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), and the U.S. Department of Agriculture (USDA).
Among other things, the facilities in which the company’s products are grown, packed or processed may be required to register with the FDA (depending on specific growing, packing, and processing operations), comply with regulatory schemes, including Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption, Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food and FDA and USDA labeling and marketing requirements, as amended by the Food Safety Modernization Act of 2011 (FSMA), the Organic Food Production Act, among other laws and regulations implemented by the FDA, the USDA, and other regulators. Similarly, the FTC requires that the company’s marketing and advertising be truthful, non-misleading, not deceptive to consumers, and not otherwise an unfair means of competition. It is also restricted by FDA and USDA from making certain types of claims about its products, including nutrient content claims, health claims, organic claims, and claims regarding the effects of its products on any structure or function of the body, whether express or implied, unless it satisfies certain regulatory requirements.
History
AppHarvest, Inc. was founded in 2018. The company was incorporated in 2018.
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