Introduction to AeroFarms with CEO David Rosenberg and CFO Guy Blanchard
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- AeroFarms is widely recognized as the world leader in vertical farming. The company is a Certified B Corporation on a mission to grow the best plants possible for the betterment of humanity. Through its innovative growing platform, AeroFarms helps solve issues brought on by macro challenges such as population growth, water scarcity, arable land loss, health consciousness, and supply chain risks.
- AeroFarms uses proprietary aeroponics to optimize indoor vertical farming at commercial scale, using ~95% less water, ~99% less land, zero pesticides, and a fraction of the fertilizers compared to traditional field farming. The company’s fully-connected indoor vertical farming platform takes a holistic approach to horticulture and leverages its expertise in plant biology, plant genetics, mechanical design, controlled environment, data science, and operations.
- Vertical farming enables year round agricultural production in a controlled environment and provides massive output at a relatively small footprint. Vertical farms are flexible and can be built close to cities, so everyone has access to fresh, great tasting, safe food. Fully controlled agriculture also allows AeroFarms to understand plant biology to optimize output with zero pesticides, herbicides, and fungicides.
- AeroFarms aims to compete initially in the leafy greens category against the likes of Earthbound Farm, organicgirl, and private label. The company prices its clamshells at price parity with the organic competition, which is normally $3.99.
- AeroFarms products are currently sold at Whole Foods, FreshDirect, Amazon Fresh, Morton Williams, Baldor, and ShopRite. Management believes its leafy greens are a superior, better-tasting product than that of the competition, demonstrated by sales velocities that are significantly higher than the category average.
- Management projects net sales of $553 million by 2026 with EBITDA margins of 35% as a price taker.
CHARTING THE PATH
AeroFarms is widely recognized as the world leader in vertical farming. The company is a Certified B Corporation on a mission to grow the best plants possible for the betterment of humanity. Through its innovative growing platform, AeroFarms helps solve issues brought on by macro challenges such as population growth, water scarcity, arable land loss, health consciousness, and supply chain risks.
Shawn Severson: Today we’ll be introducing AeroFarms to our investor base. David and Guy, do you want to give a brief background of yourselves before we get into questions?
David Rosenberg: Hi, everybody. I’m David Rosenberg, Co-Founder and CEO of AeroFarms. My background started off with a two-year financial analyst stint on Wall Street and then I’ve been in the startup world ever since and that includes being in FinTech—and these are all venture-backed companies—to internet infrastructure, to Columbia Business School, and then founding and leading a nanotech company. And now founding and leading AeroFarms. So, I’ve been in the innovation, disruptive innovation world, both leading companies and being part of institutionally-backed companies for the last almost 20 years.
Guy Blanchard: Hi, everyone. I’m Guy Blanchard, CFO of AeroFarms. I’ve been on this journey with David for about seven years now, and came from a...
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