Last updated on June 13th, 2024
Mastronardi Produce Ltd. and AppHarvest have signed a non-binding letter of intent to form FarmCo, a joint venture to develop a portfolio of controlled environment agriculture facilities to expand the supply of fruits and vegetables, including leafy greens, to Mastronardi’s existing fresh produce marketing and distribution business.
FarmCo will have its own leadership team and calls for the two partners to contribute equity and assets of more than $100 million. The venture would use the equity contributed from both companies to raise additional capital to fund its growth, targeting to build more than 750 acres of CEA facilities in the U.S. to grow fresh fruits and vegetables, including leafy greens.
“We are extremely pleased to be entering into this letter of intent with AppHarvest,” said Paul Mastronardi, president and CEO of Mastronardi Produce Ltd. “We have seen the demand for locally-grown produce skyrocket, particularly over the past 18 months as more people are cooking from home, and this partnership will allow us to significantly increase our ability to get more fresh, flavorful locally-grown produce to tables across America.”
“Mastronardi is the unquestionable leader in marketing and distributing CEA-grown produce to top grocers and restaurants in North America, and partnering more closely with them to fulfill the growing demand for quality local, fresh produce across the U.S. positions us together to make an even greater impact to establish a climate-resilient, sustainable food system to ensure food security,” said Jonathan Webb, founder and CEO of Morehead, Kentucky-based AppHavest.
A pioneer and industry leader in the gourmet greenhouse industry, Mastronardi Produce grows and markets nationally recognized products under the Sunset brand, including Campari, Flavor Bombs and Angel Sweet tomatoes. Mastronardi Produce has been family-owned for more than 70 years and produces gourmet tomatoes, peppers, cucumbers and berries.
