A local indoor vertical farming startup has finalized an acquisition deal that could help it scale its latest customer offering.
Hamilton-based 80 Acres Farms has purchased the Mother Raw premium salad dressing business from Reunion Foods Inc., a Toronto-based food manufacturer that also makes a variety of condiments, dips, dressings and more.
Terms of the transaction were not disclosed. 80 Acres said it plans will integrate the operation into an existing Hamilton location.
Reunion Foods and 80 Acres first formed a partnership in 2022, when 80 Acres started to develop its newly launched line of ready-to-eat salad kits. Those have included Mother Raw dressings since their debut in 2023.
"Working closely with Mother Raw, we fell in love with their people, their products and their commitment to fresh, healthy ingredients," Mike Zelkind, 80 Acres Farms co-founder and CEO, said in a news release. "The acquisition will streamline operations, expedite innovation and equip us as we grow our national footprint."
Mother Raw launched in 2019 with a line of salad dressings and marinades, and the brand has grown rapidly – it now has more than 25 products sold in 7,000 stores in the U.S. and Canada.
The 80 Acres salad kits – the company’s first foray into grab-and-go meals, considered a rapidly growing consumer product category – come complete with a mix of lettuces, cheese, fruit, vegetables, a protein and dressing. Its Feelin' Gouda kit, for example, includes red and green leaf lettuces, gouda cheese, apple chips, dried cherries, sea salt pecans and a poppy seed vinaigrette; while the Greekin' Out includes red and green leaf lettuces, feta cheese, marinated artichokes, pickled beets, garlic croutons and a Mediterranean-inspired dressing.
The company recently expanded the salad kit offering to more than 1,000 retailers across the eastern U.S. The move followed the opening of its newest, and largest, farm in nearby Boone County in December 2022, a $74 million, 200,000-square-foot facility. The company is also slated to open another farm in Georgia, about 25 miles east of Atlanta, in late 2024 or 2025.
80 Acres Farms said it plans to expand its salad kit product line and develop dressings in-house, using ingredients from its indoor farms.
Kristi Knowles, CEO of Reunion Foods, said in the release the company is "thrilled" its brand is in the hands of "an incredible team with an aligned purpose and will continue to thrive in the U.S. market under their leadership."
80 Acres, founded in 2015, is Greater Cincinnati's second-best-funded startup, with more than $285 million in capital raised, including a $160 million Series B announced in August 2021. Some of its investors include General Atlantic, a New York City-headquartered growth equity firm; Siemens Financial Services, the U.S. financing arm of global technology company Siemens; Switzerland-headquartered Blue Earth Capital; British investment bank Barclays and more.
The company’s indoor farms use 97% less water than traditional outdoor farms and employ renewable energy, robotics and advanced data analytics. 80 Acres-grown salads, salad kits, herbs and tomatoes are sold at retailers, including Kroger, Harris Teeter, Whole Foods, Fresh Market, Fresh Thyme, Meijer, Dorothy Lane Markets and multiple food service distributors.
