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Why Apeel Sciences's Business Model is so successful?

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Apeel Sciences’s Company Overview


Apeel Sciences is a cutting-edge agri-tech company that is revolutionizing the food and agricultural industry. Founded in 2012 and headquartered in Goleta, California, Apeel Sciences is committed to reducing food waste and enhancing the shelf-life of fresh produce. The company develops plant-derived solutions that are used to protect crops and harvested produce, thereby significantly reducing reliance on pesticides and other harmful chemicals. Apeel's groundbreaking technology involves the use of a protective extra 'peel' that extends the freshness of fruits and vegetables, thus ensuring sustainability and promoting food security globally. Apeel Sciences operates on a unique business model that focuses on partnering with both growers and retailers. The company's technology is applied post-harvest at the packing house, where it acts as a barrier to slow down water loss and oxidation — the two main factors that lead to spoilage. By extending the shelf life of fresh produce, Apeel enables growers to access distant markets that were previously unattainable due to spoilage concerns. Retailers, on the other hand, can reduce food waste, offer their customers fresher produce, and improve their bottom line. Regarding its revenue model, Apeel Sciences earns income through a service fee model. The company charges its clients based on the volume of produce treated with its technology. This pricing structure benefits the growers and retailers as they only pay for the amount of produce treated, and it also allows Apeel to scale its services according to the client's needs. Additionally, the reduction in food waste and increased shelf life of produce creates substantial savings for clients, which in turn, generates repeat business and sustainable revenue for Apeel.

https://www.apeel.com/

Country: California

Foundations date: 2012

Type: Private

Sector: Consumer Goods

Categories: Agriculture


Apeel Sciences’s Customer Needs


Social impact:

Life changing: heirloom, affiliation/belonging

Emotional: design/aesthetics, wellness

Functional: reduces cost, quality, variety, sensory appeal


Apeel Sciences’s Related Competitors



Apeel Sciences’s Business Operations


Agribusiness:

Agribusiness is the manufacturing of agricultural products. Agrichemicals, breeding, crop production (and contract farming), distribution, farm equipment, processing, seed supply, and marketing and retail sales. Thus, the agribusiness system includes all food and fiber value chain agents and the institutions that affect it. The term agribusiness is simply a combination of agriculture and business within the agricultural sector, alluding to the wide variety of activities and disciplines that contemporary food production encompasses.

Licensing:

A formal agreement in which the owner of the copyright, know-how, patent, service mark, trademark, or other intellectual property grants a licensee the right to use, manufacture, and sell copies of the original. These agreements often restrict the licensee's scope or area of operation, define whether the license is exclusive or non-exclusive, and stipulate whether the licensee will pay royalties or another kind of compensation in return. While licensing agreements are often used to commercialize the technology, franchisees also utilize them to encourage the sale of products and services.

Sustainability-focused:

Companies that manufacture fast-moving consumer goods and services and are committed to sustainability do ecological impact assessments on their products and services. While research-based green marketing needs facts, green storytelling requires imagination and location. Employees responsible for the brand definition and green marketers collaborate with product and service designers, environmental groups, and government agencies.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Product innovation:

Product innovation is the process of developing and introducing a new or better version of an existing product or service. This is a broader definition of innovation than the generally recognized definition, which includes creating new goods that are considered innovative in this context. For example, Apple launched a succession of successful new products and services in 2001?the iPod, the iTunes online music service, and the iPhone?which catapulted the firm to the top of its industry.

Solution provider:

A solution provider consolidates all goods and services in a particular domain into a single point of contact. As a result, the client is supplied with a unique know-how to improve efficiency and performance. As a Solution Provider, a business may avoid revenue loss by broadening the scope of the service it offers, which adds value to the product. Additionally, close client interaction enables a better understanding of the customer's habits and requirements, enhancing goods and services.

Supply chain:

A supply chain is a network of companies, people, activities, data, and resources that facilitate the movement of goods and services from supplier to consumer. The supply chain processes natural resources, raw materials, and components into a completed product supplied to the ultimate consumer. In addition, used goods may re-enter the distribution network at any point where residual value is recyclable in advanced supply chain systems. Thus, value chains are connected through supply chains.

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