Harris Teeter’s “commitment to premium quality” and “strong distribution capabilities” was a win for Oishii and a significant opportunity for the company to expand regionally, Rita Hudetz, chief commercial officer, Oishii, told FoodNavigator-USA.
“Working with Harris Teeter and the DMV area was a great way to take advantage of some of the groundwork and awareness that we had already built in the DC area,” she explained.
The company’s indoor Amatelas Farm in Phillipsburg, NJ, is 237,700 square feet and launched earlier this year providing the capacity for Oishii’s expansion beyond Washington, DC, Hudetz said. Amatelas Farm primarily produces Oishii’s Koyo berries. The company’s 72,000 square foot Jersey City, NJ, farm, Mugen Farm, produces its Omakase berries and Rubī tomatoes.
Oishii’s pesticide-free and non-GMO produce also will be carried in Wakefern Food Corp. supermarkets (e.g. ShopRite, Fairway, DiBruno Bros., among others) in the tri-state area.
Oishii’s R&D facility puts roots down in Tokyo
In addition to growing its indoor farm operations in New Jersey, Oishii’s Open Innovation Center in Tokyo will launch at the end of 2025. The Center will serve as an R&D facility for Oishii to explore the cultivation of new fruits and vegetables and manufacturing technologies, Masaharu Suzuki, Oishii’s Japan CEO and former GM of Johnson & Johnson K.K., will lead the Center.
Japan holds more than half of the “commercially available strawberry cultivars in the world,” and is an ideal location for the company’s research on sustainability impacts, quality and flavor of different plant varieties, according to the company.
Between the US and Japan, “Oishii will be able to accelerate and shape the next frontier of indoor vertical farming innovation,” the company added.
Lowering prices for consumers through R&D innovation
Since February, Oishii raised $150 million in Series B funding, which bolstered the company’s expansion into other retailers and markets and strengthened its R&D capabilities.
The company’s investments in automation and machine learning across its two New Jersey farms also helped lower prices for its berries, which boast consistent flavor and color, Hudetz said. Oishii’s Omakase Berry sold for $50 a tray in 2018 and now each tray of 11 berries ranges between $12 to $15. Koyo Berry now sells for $9.99 versus $15 in 2023 for a tray of six.
“We have been working hard to bring down this price over time. Our goal is to mainstream vertical farming” through a combination of marketing and strategic collaborations (e.g. Oishii’s partnership with Georgetown Cupcakes), Hudetz said.
Hudetz also pointed out the need for more consumer education around indoor farming as the company continues to expand across the country.
“What we can tell from some of the research we have done, consumers do not necessarily understand vertical farming and what it is, and so you really are having the conversation and conversion with consumers based on taste and on brand and the story that we tell,” she explained.
