Kroger Co. is expanding its partnership with one of Greater Cincinnati’s fastest-growing startups, a deal that would increase access to fresh produce to more communities across the Midwest, officials said.
Downtown Cincinnati-based Kroger (NYSE:KR), the nation’s largest operator of traditional supermarkets, will expand its partnership with Hamilton’s 80 Acres Farms this month, adding the company’s vertically farmed produce to four new "key market areas" across a three-state footprint, including Ohio, Kentucky and Indiana. The announcement comes 16 months after the companies announced their inaugural pilot project — and marks 80 Acres’ first major win since debuting its new state-of-the-art farm, a 70,000-square-foot, $30 million project in Hamilton, earlier this year.
Beginning March 15, 80 Acres will serve 316 Kroger stores in a roughly 150-mile radius of Greater Cincinnati, including Columbus, Indianapolis, Lexington and Louisville, 80 Acres CEO Mike Zelkind told me. The partnership growth is a significant boost to its distribution plans and was propelled by the company’s latest farm — the world’s first fully-automated indoor farm — coming online. Its addition has enabled 80 Acres to deliver “consistent, quality produce at scale,” he said.
"80 Acres Farms is proud to partner with a nationwide retailer like Kroger to deliver a homegrown experience in select markets,” Zelkind said. "Consumers are looking for more nutrition from their diet and want to trust that their food is safe and chemical-free and will last longer in their refrigerators. The 80 Acres brand delivers against all those promises."
Kroger first partnered with 80 Acres in November 2019 as part of a pilot project to supply Kroger’s newly built Downtown “On the Rhine” store with 80 Acres basil, baby cucumbers, tomatoes and salads. Per its website, 80 Acres currently serves 32 Kroger stores in the Greater Cincinnati and Dayton area.
In the release, Kroger said partnership builds on its “Zero Hunger-Zero Waste” sustainability initiative. 80 Acres uses technology that allows it to grow produce indoors, all year round, without the use of pesticides, while using about 97% less water than a traditional farm. 80 Acres grows signature items like leafy greens and tomatoes, but eventually, the company said it will add fruit like strawberries and more.
"Everyone deserves access to fresh, affordable, delicious food," Dan De La Rosa, Kroger’s group VP for fresh merchandising, said in a release. "This newly expanded partnership means more communities will have just-picked produce at their fingertips 365 days a year.”
Besides Kroger, 80 Acres is also sold locally at Jungle Jim’s International Market, Whole Foods and Country Fresh, among other retailers. 80 Acres, one of Greater Cincinnati’s best-funded startups and a 2020 Cincy Inno “Inno on Fire” honoree, operates eight farms, including four in the region, as well as in Daphne, Ala.; Springdale, Ark.; and Granite Falls, N.C. The company, founded in 2015, has 125 local employees, and 170 overall.
Kroger is Cincinnati's largest public company, with 2019 revenue of $122 billion, according to Courier research. It operates 2,742 stores in 35 states and the District of Columbia.
