Do you want to know more about KALERA vertical farm's growth strategy?
Following a request formulated by Urbanvine.co, I enquired about one of the rising companies in the urban agriculture, KALERA S.A. This paper presents Kalera’s main characteristics, which has a decade of know-how around growing leafy greens in a controlled environment.
Kalera’s business highlights:
Founded in 2010 by Cristian Toma, the company developed an advanced nutrient management system. In 2021, Kalera acquired 2 companies:
&Ever GmbH, a German firm with a high degree of automation facilities in German and Koweit.
Vidara, a US firm specialised in genetic seed varieties for indoor farming.
All 3 firms have complementary capabilities. These deals increased Kalera’s strengths in the vertical farming sector and led to the development of new markets worldwide. Nowadays, the company operates, 9 high-yield, automated, data-driven hydroponic production facilities internationally (see graph above). Its lettuces and micro greens are sold in over 1,200 retail locations (restaurants and retailers). However, there is a lack of information on the number of employees.
On April 1st, Kalera finalized phase one of construction for its new fully-automated, multi-layered vertical mega-farm in Singapore. The first harvest is scheduled for May.
Although the company is still not profitable, the financial statements show improvements over 2021 (see table below). Whereas sales rose by over 50%, the operating loss went up by 80% due to the expansion-related expenses (acquisitions, opening of the Atlanta and Houston facilities, and pre-opening costs for Denver, Seattle, Hawaii, and Columbus facilities). As a result, the Company’s cash balance dropped to $16.1 million (-93%) in 2021.
Kalera's financial statements for 2020 and 2021
Kalera’s strategies for growth beyond 2021:
This year, Kalera’s ambition is to go public on the Nasdaq by merging with Agrico Acquisition Corp. The combined company will have an equity value of approximately $375 million, becoming the fourth publicly traded agriculture technology firm after AppHarvest, Spring Valley, and Hydrofarm.
New capital is expected to provide Kalera with the flexibility to fuel future farms construction shown in the graph on the right-hand side. Besides, Kalera is planning to:
Rebrand its products in partnership with Lambert & Co, a communication and marketing firm.
Enhance its sustainability by introducing new packaging.
Expand its product portfolio to meet local demands (baby leaf, cut leaf, and strawberries).
Develop and test new seeds (blueberry, quinoa, arugula, cucumber, and cilantro).
To conclude this presentation, the question I would like to raise is: will the combination of these multiple growth strategies provide Kalera with competitive advantages to survive in an exponential and constantly evolving market?
Anne Pelisse, Filament Europe