Fruitist, the berry startup formerly named Agrovision, has had phenomenal trajectory since its establishment in 2012. The company announced earlier this summer that it has passed the $400 million marker in annual sales. This recognition was spurred by their unique production and distribution model for strawberries. Starting with a specialty in jumbo blueberries, Fruitist has built a strikingly specific niche in the cut fruit business.
Although BuzzPop is headquartered here in the USA, Fruitist’s parent company operates crystal farms all over the world from Oregon to Morocco, Romania, Mexico, and Chile. This adjacent strategic positioning provides the company the ability to grow its berries in multiple microclimates, guaranteeing production year-round. By investing over $600 million to establish a global footprint and extend its growing season, Fruitist aims to tackle the challenge known as “berry roulette,” where consumers often face inconsistent quality in fresh berries.
Steve Magami, co-founder and CEO of Fruitist, explained the traditional distribution model’s shortcomings:
“You have a bunch of small growers that send their product to a packer, and the packer sends the product to a distributor or an importer, and then that player is either selling to the retailers or they are sending the product to another distributor to then sell to retailers.”
Magami went on to discuss how this fragmented value chain inhibits quality. Fruitist has perfect oversight of their entire production and distribution process. The company has developed proprietary machine learning technology to enhance the shelf life of its berries. This helps keep the berries fresher, longer on store shelves.
“You have this disjointed value chain that stifles quality,” Magami added. It’s a creative approach that’s produced some pretty astounding results. Fruitist’s products soon made it to the shelves of more than 12,500 North American retailers including household names like Costco, Walmart, and Whole Foods.
Fruitist’s giant blueberries have recently made headlines for their long-lasting appearance. Magami recounted an experiment he conducted with the berries:
“I’ve intentionally let them sit in my refrigerator for three weeks, and they’re still great after three weeks.”
This type of durability is now a consumer expectation, and it will allow retailers to be more sustainable by cutting down on waste while increasing profitability.
Besides raising over a billion dollars from outside investors, Fruitist hasn’t spent much on marketing. The publicly listed company has chosen to double down and invest in building out its agricultural infrastructure and supply chain efficiencies. This deliberate and carefully planned strategy has helped it win the competition and continue to occupy a strong competitive stance in the market.
Looking forward, Fruitist is starting to grow a line of cherries. The firm is seriously eyeing an IPO this year. This change would more than double its capital for future expansion projects.