Apr 3, 2024

Edible Gardens vertical integration program starts with herbs

Controlled environment agriculture (CEA) grower Edible Garden AG Inc. is switching to in-house production of potted herbs, a move expected to enhance its margins.

The company, which markets conventional and organic herbs, salads and other leafy greens, has sourced potted herbs from contract growers in the past. The new initiative is aimed at vertical integration of its Edible Garden Heartland facility in Grand Rapids, Michigan.

“As a result of our vertical integration initiative, I am pleased to announce we are now shipping the USDA Organic potted herbs produced at our Edible Garden Heartland facility to major distribution partners in the Midwest,” Jim Kras, CEO of Edible Garden, said in a news release. “This marks a significant expansion of our Midwest production capabilities and is expected to enhance our margins by reducing production costs.

The company acquired Edible Garden Heartland, a five-acre greenhouse facility, in August 1992. Since then, the company has integrated new technologies, including its patented GreenThumb greenhouse management system, improving the traceability of Edible Garden products and streamlining supply chain efficiency, Kras said.

In addition, installation of several high-speed packing lines at the facility was completed, increasing its capacity.

“Having Edible Garden Heartland operate at a higher capacity enables us to shift from contract growers to in-house production, starting with potted herbs,” he said in the release. “We believe this vertical integration illustrates our commitment to maximizing the operating efficiency of our facilities as we forge ahead toward our goal of profitability.”