New York-based produce company Gotham Greens just raised $310 million in fresh funding. Viraj Puri, co-founder and CEO of Gotham Greens, joined Cheddar News to discuss green farming, supply chain, and expansion after its latest cash infusion.

Gotham Greens Prepares For Expansion With Additional $310 Million in Funding

fresh food company Gotham greens recently raising 310 million in a series E round by BMO Impact Investment Fund and Ares Management. Gotham greens produces and delivers leafy greens, herbs, salad dressings, dips and cooking sauces all year to retail, restaurant and food service customers. And the company says it is on a mission to transform the way that we approach our food system, putting people and the planets at the forefront. So joining me now to discuss is barrage curry co founder and Ceo of Gotham Greens Virage, Thanks so much for coming on the show. So, uh, absolutely fascinating what you're doing here for people who might not have seen your particular greens and products at the grocery market. Talk to me more about what your company offers. Thanks for having me. Yes. Gotham greens is a pioneer in the indoor farming and plant based food spaces and we operate today, one of the largest networks of high tech greenhouses in north America. So essentially it allows us to grow year round regardless of the outside climate and it enables us to grow the food locally much closer to Um where the products are consumed. So the products don't have to travel long distances to get from the farm on to a supermarket shelf and eventually onto your plate. Um by 2023 will be operating almost 40 acres of greenhouse across nine us states. So how much healthier and I guess better for the environment? Virage is it for customers to buy your products? Certainly better for the environment we believe. So agriculture is responsible for about 34% of greenhouse-gas emissions. It's the largest consumer of land on the planet. It's the largest consumer of freshwater on the planet. Um And the way we grow in our greenhouses enables us to grow using 95% less water and 97% less land compared to conventional farming. And because we grow in such close proximity to the marketplace, we can sharply reduce transportation costs and fuel and associated emissions so we can grow a head of lettuce using two gallons of water well out in the field and say California where it's conventionally grown, it can take up to 40 gallons of water for a single head of lettuce. So as water becomes more scarce resource, we believe this form of farming is going to play a much greater role. And in terms of health and nutrition we believe our products are more nutritious, We can really control the environment, plant nutrition, the irrigation fertilization, We eliminate the use of harmful chemical pesticides so all in all it's better for the planet and we believe a better eating experience for our customers. Well, clearly investors are on board barrage, congratulations again recently raising $310 million. Absoluteing amazing. Especially in this environment. How are you going to use that money to expand? Yeah, we plan to use this funding to essentially expand our greenhouse network around the country. So currently we operate 10 greenhouses in seven U. S. States and proceeds from this fundraiser essentially you're gonna help us build more greenhouse capacity. So we have large greenhouse construction projects underway currently in texas, Georgia and colorado as well as expansion of our greenhouses in Rhode island and Illinois. And then also we've used these funds to make our first acquisition. We recently completed the acquisition of fresh tuo growers based in Virginia. This is a 500,000 square foot greenhouse facility that also produces fresh leafy salad greens. And so this is going to really enable us to expand in the mid atlantic and the Southeast markets additional use of proceeds a sort of project just increasing operational capacity, new product development sales and marketing. So how do prices for consumers? Virage compare two comparable items at the grocery store. Are you about in line with the average or is it a little bit more expensive given the sustainability climate friendly element here? So we strive for price parity and most of our leafy greens are in fact priced just in line with national averages at your average supermarket. So think 3 99 for um you know a box or a bag of lettuce that you can find at a whole foods market Kroger Albertsons, places like direct and a lot of that is because we can take the transportation costs out of the out of the equation. Right? So while it does cost us a little bit more to produce in these high tech facilities that are close to cities, we sharply reduce transportation costs right? Because we're close to the customer and were largely insulated against other um inflationary trends like fertilizer, for example, I mean we use a very small fraction of the fertilizer compared to conventional farming. So we've been really insulated against those inflationary pressures as well. So we did learn earlier today, Virage Kroger's own intent to buy Albertsons Albertsons stock rising on the news. Will that change your own operations for both of these grocers that you do currently separately service? It certainly remains to be seen as you noted, we sell to both of those customers that are valued customers of ours. Um, and look, there's been so many acquisitions in um in the grocery retail space over the last few decades and in fact that's how Kroger and Albertsons themselves have grown to the size that they are, is really through consolidation. So um, it's big news in our industry, but certainly not surprising. All right. I think we've got to leave it there barrage curry co founder and Ceo of Gotham Greens Raviraj, thanks so much for coming on the show