Photo credit: www.cnbc.com
Fruitist, a startup specializing in jumbo blueberries, has seen a remarkable increase in sales over the past year, with figures tripling according to the company’s recent announcements.
Now boasting over $400 million in annual revenue, the company, founded in 2012, has rebranded itself from Agrovision to Fruitist. This name change reflects its strategic focus on consumer products, including not only blueberries but also raspberries and blackberries.
The impressive growth trajectory is supported by over $1 billion raised from investors, as indicated by Pitchbook data, with prominent backing from figures such as Ray Dalio’s family office.
Despite facing potential challenges due to global market conditions, Fruitist is contemplating an initial public offering (IPO) as early as this year.
Fruitist has differentiated itself in a competitive market by branding its berries as “snackable.” The popularity of healthier snack options has surged, bolstered by trends such as the increasing use of GLP-1 medications and initiatives for improved public health promoted by figures like Health Secretary Robert F. Kennedy Jr.
The company’s products are now available in over 12,500 retail locations across North America, including major chains like Costco, Walmart, and Whole Foods, with significant growth in jumbo blueberry sales in the last year alone.
Addressing Quality Concerns
Co-founder and CEO Steve Magami explained to CNBC that Fruitist was born out of the need to eliminate what he refers to as “berry roulette,” a term he uses to describe the inconsistent quality of berries typically found in grocery stores. He attributes this issue to the fragmented supply chain used by traditional producers.
By cultivating its fruit in diverse microclimates across Oregon, Morocco, Romania, and Mexico, Fruitist aims to enhance quality and consistency. The company utilizes machine learning to optimize harvest timing and has invested in infrastructure, such as cold storage, to maintain product freshness.
The vertical integration of its supply chain allows Fruitist’s berries to have a longer shelf life compared to competitors. Magami noted that he has tested the longevity of their berries, finding them still in excellent condition after three weeks in his refrigerator.
The company is also venturing into new territory with plans to introduce cherries, currently being cultivated in Chile, and may have them available in stores by early 2026.
In total, Fruitist has committed over $600 million to ensure year-round berry farming and expand its global reach across North America, Europe, the Middle East, and Asia. Initially, the company has focused less on marketing but has recently secured a multi-year partnership with Major League Soccer team D.C. United to enhance its brand visibility.
Navigating Trade Challenges
One avenue for increasing public engagement could be through an IPO, which was reported by Bloomberg to be under consideration for June. However, Magami refrained from providing further comments on any potential public offering.
Should Fruitist pursue this path, it will enter a fluctuating public market environment, as highlighted by the varied performances of recent IPOs. For instance, Dole has recently seen a 14% increase in its share price, contrasting with the overall modest gains of the S&P 500.
However, ongoing trade wars and the resulting market turbulence have made it difficult for many companies to launch public offerings, as seen with Klarna and StubHub postponing theirs. Still, consumer businesses demonstrating robust growth continue to attract interest; Chagee, a Chinese tea chain, notably rose by 15% in its initial market debut.
Trade issues also affect Fruitist’s operations as a global produce entity. Although temporary tariffs have been reduced to 10%, uncertainty looms regarding future rates. For example, the company faces a 26% duty in India, where it manages 20 hectares of blueberry cultivation.
Nevertheless, Magami expressed optimism about the company’s resiliency in the face of these challenges, stating their investments in domestic production have mitigated potential impacts from tariffs. He emphasized the company’s strategy of importing to ensure year-round availability rather than competing directly with domestic harvests.
Fortunately for Fruitist, the timing of tariff increases coincides with the domestic berry season, which potentially offers a buffer to its operations.
Source
www.cnbc.com