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Generate Capital announces significant investment to meet the growing demand for ready-to-eat salads produced through vertical farming.
Vertical farming specialist GrowUp has secured a substantial funding boost as Generate Capital, a sustainable infrastructure investment firm, announced a £38 million investment to support GrowUp's expansion plans. This new investment will enhance capacity at GrowUp's Kent vertical farm, where crops are produced for the ready-to-eat salad market. It will also accelerate the growth of its Unbeleafable and Fresh Leaf Co. brands. Additionally, the funding will bolster ongoing research and development at GrowUp's Leaf Lab site in Cambridge.
This latest cash injection extends Generate Capital's existing partnership with GrowUp, following an initial financing deal in 2021. That deal enabled GrowUp to showcase its energy-efficient growing system and transform a five-acre brownfield site into a vertical farm. According to the company, this farm can produce crops equivalent to those grown on 1,000 acres of grade-one farmland.
Since then, GrowUp has become the first vertical farm to supply branded, bagged salads to major supermarkets such as Tesco, Iceland, and SPAR.
Marcus Whately, CEO of GrowUp, hailed the latest investment as "a fantastic boost to GrowUp [that] recognises the team's passion and talent".
"With Generate Capital's support, we have proved that vertically farmed salads are sustainable, cost competitive, and commercially viable, as well as tasty, healthy, and long-lasting," he added. "Together, we can unlock a new salad category and meet growing consumer demand.
"Consumers want UK-grown, sustainable, longer-lasting leaves - grown without pesticides. With this further investment, we can expand production to meet demand and continue to transform UK food production. We've been growing for over 11 years now. We've come a long way with Generate Capital's support since Kate Hofman and Tom Webster set up their first vertical farm in 2013, supplying salad leaves to London markets and restaurants."
Generate Capital's CEO and co-founder, Scott Jacobs, said GrowUp was "one of the UK's most exciting and innovative vertical farming operations, experiencing nearly 800 percent sales increase year over year".
"Their ability to quickly earn the trust of the UK's largest retailers shows the appeal of their product lines, the strength of their team, and their ability to meet rising consumer demand for healthy, locally grown food," he said. "We look forward to working with them to keep accelerating the decarbonisation of the food system by providing nutritious, affordable and sustainable greens to UK consumers and food manufacturers."
Advocates of vertical farming argue that this innovative approach can dramatically reduce water usage, carbon emissions, and other environmental impacts linked to traditional crop production. They also highlight the potential to shield food production from the increasing threats posed by climate change.
On the other hand, some critics have raised concerns about the substantial energy demands of vertical farms. They question the sector's capacity to scale up effectively to produce more calorie-dense crops.
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