Linked companies : AppHarvest, Inc. Summary. Announces Separation of Julie Nelson as Chief Operating Officer Nov 16 Price target decreased to US$5.33 Nov 16 See more updates Shareholder Returns See full shareholder returns Return vs Industry: APPH underperformed the US Food industry which returned I could be in a penthouse in New York City, managing AppHarvest from the 32nd floor of some high-rise. CEOs can get lazy and only worry about the last 90 days; thats easy. All rights reserved. sold to the top 25 U.S. grocers. We've had record amounts of rainfall. This year alone, more than 50 SPACs have been formed in the US, collectively raising around $36.2 billion as of last month. A specialist in knee surgery, Jonathan Webb was a rugby union fullback for the English national team from 1987 to 1993. David and Tom just revealed what they believe are theten best stocks for investors to buy right now and Walmart wasn't one of them! On this week's episode of Industry Focus: Wildcard, host Jason Moser chats with AppHarvest (APPH) founder and CEO Jonathan Webb about the growing opportunity in the agtech space, what makes AppHarvest unique, his vision of the future of farming, and much more. The Motley Fool owns shares of and recommends Tesla. I think you really keyed in on something important there, a 30-year journey. We dont talk about this at all in the US. Recently, I had the opportunity to chat with Jonathan about the growing opportunity in the AgTech space. Here, we've had three years out of the last ten years in Kentucky have been our wettest years on state record. We'll talk a little bit about your quarterly results here in a minute because I want to get into that, but one of the things that stood out to me in the earnings call. Our team is built to scale and you look at where we're at today, we've launched our first facility. Webb: Well, I'll start by saying, anyone that is growing good, clean produce, without harsh chemical pesticides, I try to call them my colleagues, not competitors. WebGet Chad Hill's email address (c*****@appharvest.com) and phone number at RocketReach. Karrie, on the other hand, has not disclosed her salary or income. But I think there are a lot of benefits that come with that. 20years ago it was renewable energy. Fresh Take: A Make-Or-Break Food Trade Show, Inside The Food Labor Movement: An Update From Starbucks Front Lines, Its The Gourmet Toast Driving Expansion At Toastique, Fungi-Based Protein Company Meati Launches Scientific Advisory Board To Support Scale-Up, Nutrition Research, City Saucery Takes Pride In Its Ugly Tomato Sauces, By Helping The Ukrainian Community In Manhattan, Veselka Earns A James Beard Nomination For Outstanding Restaurant, French Wine Region Bourgogne Should No Longer Be Translated To Burgundy. As part of that, in order to bring trust and transparency to agriculture, you have to be a public company. "And we don't think we could do that if we weren't in the public markets.". We look at them over the course of time, years, and hopefully, decades we can be a part of that journey with you all. Moser: Well, you said it on the call. You can also follow him on Instagram. Webb left for college, eventually pursuing a career in renewables at the DOE, a space where he felt he could be part of the solution. But the economic devastation in his home state still bothered him. As investors were looking for the biggest market opportunities we can find, market opportunities that are growing. Do the hard work to create shareholder value now while also looking out for shareholders two decades from now, Webb said is his credo. Jason Moser has no position in any of the stocks mentioned. You start to do the math, and realize you might need two planet earths to have enough land and water to grow that food.. Jonathan Webb poses in front of his giant greenhouse, When you look at human civilization, what do you need? We're building these facilities here where we can access markets and get to about three-quarters of the U.S. on a day drive. Typically, you would do 40 to 60 meetings to get a couple of investors. Visualize our facility in Murray, Kentucky, it's 2.8 million square feet, nearly 50 football fields under-glass. Those robots have collected the worlds largest data set of tomato images, and each one is equipped with cameras and a laser that creates a 3D scan of the crops in front of it to determine what needs to be done at any given moment. Then by the end of the year in 2022, we'll have five facilities operating. The method of farming uses technology like artificial intelligence and robotics to grow fruits and vegetables, producing 30 times the yield of traditional farming while using 90% less water, the company claims. Originally from Kentucky, Webb is dedicated to sustainable projects in Central Appalachia. It hopes to expand into leafy greens, berries, cucumbers, and bell peppers in the future. Were investing heavily We have one farm right now thats 2.8 million square feet. Webb grew up in Kentucky, and founded AppHarvest in 2017 after years in the solar development industry, based in New York. AppHarvest. It's nearly impossible to have full transparency. WebInside is a tightly controlled environment that uses 90% less water than open-field agriculture and only rainwater to produce crop yields up to 30 times that of traditional AppHarvest raised $500 million on its balance sheet this year, went public on the Nasdaq, hired 400 people to work in its first facility, and brought its first product, beefsteak tomatoes, to grocery stores including Kroger, Walmart, and Publix. Clearly, the younger generation is coming up, sustainability matters, better food matters. He practices at Mayo Clinic Hospital Eau Claire. You've taken a lot of steps early on in the development of your business to address a lot of those ESG concerns. No. In February 2018, encouraged by investors, advisors including Hillbilly Elegy author J.D. "We have the capital we need and we're focused on building and operating, and just head down on execution," Webb said. My competition in Mexico, you have people getting paid $5 a day. Investors look at that, Peter Halt, AppHarvests newly appointed chief financial officer, told, Step aside, alt-protein: Bioplastics are the real agrifoodtech opportunity, The rise of the reused machines: Germanys E-Farm raises $5.3m Series A. By the end of next year, well quadruple that. That's how quickly the energy industry shifted. It was clear that their work culture is infused with a pioneering mentality, and that Webb feels strongly about keeping that culture consistent as the company expands. On today's show, AppHarvest Founder & CEO Jonathan Webb talks about AgTech (agriculture tech), the third wave of sustainable infrastructure. Webb: Regulators are pounding on them, consumers are pounding on them. What's your competitive advantages or something you feel differentiates you from your competition? To make the world smarter, happier, and richer. Its easier than ever to find a trustworthy doctor. No one else in America is doing something at that scale. His extensive experience and knowledge in the field have led to his reputation as a leading knee surgeon in the UK. His final international was against Ireland in March 1993. He studied history and economics at the University of Cape Town, and obtained a Bachelor of Laws and post-graduate diploma in maritime law from the University of Natal. WebThe combined company will be led by Jonathan Webb, AppHarvests Founder & Chief Executive Officer. With that difficult work that in mind, Webb has designed his company to grow as much produce as possible as sustainably as possible. With significant tailwinds from heightened investor focus on ESG initiatives and the secular shift to plant-based foods, we believe AppHarvest is well-positioned to execute on its strategy for rapid growth and value creation, he continued. We're really in the business of packaging up water and then shipping that out to major markets and then beyond that execution at scale. Jonathan strives to work alongside the hard-working men and women of Eastern Kentucky and build an inclusive economy for the future. FORTUNE may receive compensation for some links to products and services on this website. Why locate in Appalachia? Webb: We've been very fortunate that some of our investors and board members, Fidelity was the largest investor in our pipe during the public process, Jeff Ubben of Inclusive Capital, our Chief Sustainability Officer, Jackie Roberts came to us from the Carlyle Group, we're all very serious about this. He has a particular interest in knee surgery and sports medicine. He also has experience in civil litigation and Title IX proceedings. Jonathan Webb is the Founder and CEO of AppHarvest, a company that combines conventional agricultural techniques with cutting-edge technology to address key issues including improving access for all to nutritious food, farming more sustainably, building a homegrown foods supply, and more. Get 5 free searches. 2023 Fortune Media IP Limited. But if you look at all the problems in the agriculture system, this industry really solves most of those problems. It's a nice evolution in the investing world that we care more and more about it. No. Offers may be subject to change without notice. Yahoo Finance's Julie Hyman at the 2022 SXSW Conference, 3 big things in investing you might have missed this week, UPDATE 1-North Korea says US causing international arms control collapse, EU releases funds, prepares aid flight for eastern Congo, Rheinmetall in talks on building tank factory in Ukraine - report, Ukraine Latest: Metsola Urges More Sanctions Pressure on Russia. If you look at the grocery and then you go, wait a second. Jonathan Webb is a dual-qualified lawyer. We have a phenomenal team of sustainability experts. Its first crop will be non-GMO tomatoes, which will be provided to a number of US grocers. He has many impressive accomplishments. Webb: We could not be more excited. The private markets can be a part of every solution we have that we're seeing today. US controlled environment agriculture (CEA) startup AppHarvest has announced a merger with NASDAQ-listed special purpose acquisition company (SPAC) Novus Capital, enabling it to go public. Webb founded AppHarvest in 2017, and the company was certified as a B Corp two years later. Again to some of your viewers that aren't aware of Root AI just look them up and take a look at some of those videos. Webb founded it in 2017 in his native Kentucky; it became a certified B Corp two years later. Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn. Vance, and politicians of both parties, Jonathan left Washington and came home to Kentucky, where he now works tirelessly to make the eastern part of the state the AgTech capital of America. Webb, a former rugby player, has a wealth experience and is now helping players return to the sport they love. Ten years ago, Tesla made electric vehicles popular in the mainstream, and right now, it's controlled environment agriculture. They have 10% of the world's freshwater. Project Access, Inc. was founded by Mr. Webb in 1999. Webb is from Kentucky, where 16% of residents are You talk about sustainable. But if you look at the current food system today, it's high fructose corn syrup, it's sugary food that has low nutrient density. I'd tell you, we go through tomatoes, handover, [] in my house alone, I'm sure. There's a level of rigor that comes with that, and so for us, the SPAC was just a vehicle. If you look at AppHarvest, what are we doing? There's going to be a lot of companies hopefully working to solve our food and agriculture problems. Which is important, because AppHarvest employs well over 300 people in its Morehead facility alone. It's therefore worth looking at AppHarvest's earnings history below. in August is launching what it describes as the worlds largest greenhouse later this year, consisting of a 2.76 million square foot facility in Morehead, Kentucky. One of AppHarvest's Crop Care Specialists operates a tomato-picking robot. I write about the future of food, business, and culture. Now, our job is to make sure it's at around the same price. We want to be at Kroger. Founder & CEO at AppHarvest. Yes, today, we met our quarterly earnings projection, we hit our guidance, but we're making the hard investments and spending the hard time to set an organization up that's going to thrive 10 and 20 years from now. A Kentucky native and University of Kentucky graduate, Jonathan Webb is turning his dream of a high-tech farming hub in Appalachia into reality with AppHarvest. Then Jeff Obin, who is on our board and has been an early investor. But then what have we done with Root AI? No one else in America is doing something at that scale. Thanks as always to Tim Sparks for putting the show together for us. Theyre designed to be safe around people. His grandmother grew up in Whitley County, where a coal mining accident killed his great-grandfather. WebThe following charts show the stock performance of securities subsequent to each open-market, non-planned trade made by Jonathan Webb. As I was listening, there was a quote, you said, "We are farmers and futurists." If you want to know how wealthy he is, read on! We need to all collectively have a much more longer-term viewpoint on how we're building companies that are going to be good for communities, good for employees, and return a good return to our investors and shareholders. One of the things we like to discuss as investors and when we find companies, we find businesses that we like and we want to be owners of. How do you feel about coming public a lot earlier than you probably would've normally? There's a lot of different ways to go public and at the time and we did it, and I think it was definitely the best decision for us at the time. The companys first greenhouse will span 60 acres and open in 2020 in Morehead, Ky.The greenhouse will operate entirely on rainwater using a 10-acre retention pond, reducing water usage by 80% compared to a typical farm. We are about to plant our first crop in a 60-acre, controlled environment, chemical-free farm. A former England international, he reached the World Cup Final in 1991 and was a two-time grand slam champion in the Five Nations. We're in our first decade and we're going to try to look at judging the company on decade one, decade two, and decade three. Its service leadership; our team does not work for me, I work for our team., To that effect, hes imparted a lesson to each of his team members: Every day, help five people. Webb was also the first LPGA player to win $1 million in a single season, finishing first on the year-end money list. Part of it is that building big stuff fast in the US is very hard. Jonathan Webb grew up in Kentucky and has been committed to developing sustainable projects from Central Appalachia. There's not going to be one food company feeding the world. Jason Moser: It's Wednesday, May 26th, I'm your host, Jason Moser, and we've got a terrific interview to share with you on this week's Wildcard Wednesday show. Let's prove to the world what we're doing through results and even that, our first quarterly earnings call today, there's a level of rigor that you're acquired through the public markets. I love that passion. I graduated from the University of Kentucky. Webb started his professional career in 1989 as a Durban maritime lawyer firm. Then we have to remember this isn't just a U.S. problem we're trying to solve. We arent burning through cash with pointless R&D when we can buy incredible technologies over in the Netherlands, Webb says. He actively engages with his followers through his various social media accounts, including Instagram and Twitter. It doesn't need to be one or the other, it needs to be both, and we're happy to be a bit of a public benefit corporation and B Corp certified. I love your long-term focus. *Average returns of all recommendations since inception. His vision of the future of farming and much, much more. After serving as an assistant public defender in Marylands Office of the Public Defender, Webb joined Ethridge Quinn for 2020. It means transparency. He has become a prominent social media star. We can also do it by returning investors to our shareholders. He has successfully completed over 200 operations using the Mako machine. By being able to have robotics and AI they can have more real-time information. This is still a very new space though. We thought in order to build an organization that's going to be selling to the top grocers. WebJonathan Webb, the CEO of AppHarvest, says water scarcity is a growing national security concern as a heatwave continues to wreak havoc on the West Coast. WebFounder & CEO, AppHarvest Kentucky native and University of Kentucky graduate Jonathan Webb is turning his dream of a high-tech farming hub in Appalachia into reality with AppHarvest. I have no doubt that we will. We have a phenomenal growing team. AppHarvest which raised $28 million in its Series C round in August is launching what it describes as the worlds largest greenhouse later this year, consisting of a 2.76 million square foot facility in Morehead, Kentucky. The applied technology company is developing and operating some of the worlds largest high-tech indoor farms. We don't want to be selling just to the high-end. Other AppHarvest investors include TV cook Martha Stewart, VC veteran Peter Thiel, We are about to plant our first crop in a 60-acre, controlled environment, chemical-free farm. Later, in 1993, he relocated to the United Kingdom, where he completed his LLM. There has been nothing more impactful on farming since that time, and now, it's AI robotics and using data to make decisions. [laughs] This is something I'm very passionate about. Look at how many times in the last few years you've had leafy greens yanked off store shelves. Photo credit: US controlled environment agriculture (CEA) startup, has announced a merger with NASDAQ-listed special purpose acquisition company (SPAC), The deal is slated to bring in $475 million in gross proceeds for Kentucky-based AppHarvest, including a private investment in public equity (PIPE) transaction worth $375 million from existing and new investors including, I cant say this was the exact plan but what accelerated all of this was Covid-19, AppHarvest CEO Jonathan Webb told, . This article will briefly review the most important information. I think we have seen some other players in the space that are starting. One of AppHarvest's mobile units ready to fight the food fight, outside of AppHarvest's offices in [+] Lexington, Kentucky, If we cant treat people with dignity and respect who put food on our table, where do we think humanity is going to end up? I cant say this was the exact plan but what accelerated all of this was Covid-19, AppHarvest CEO Jonathan Webb told AFN. But I dont think thats adding value to the company, or looking out for our shareholders, he said. We dont see it as losing money for losing moneys sake; developing that tech is investing in our future.. I go directly into the facility and talk to entry-level employees and people sweeping the floors. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. ", As a CEO, Webb admitted that this focus on the long-term outlook has not been easy to prove to Wall Street, especially when compared to those who are "selling a worthless product that's not good for people and not good for planet and arguably questionable for shareholders. It is a non-profit organization that provides education and social services to low-income residents living in low-income apartments. In the latter, Webb was the only English player to score in the game. I mean, that is right in line. We're in that classic scenario of demand exceeding supply. We love DC, but we don't want to just be selling to the high-end restaurants in DC. We dont have two planets though, so Webb got creative. AppHarvest is a unique and compelling investment opportunity that is redefining American agriculture by improving access for all to fresh non-GMO produce, growing more with fewer resources, and creating an agtech hub from within Appalachia, Novus chairman Bob Laikin said in a statement. Webb is one of very few knee surgeons to have played for both the England-France national teams. We were just talking earlier and you mentioned how you're in the DC area, it was fortunate that we had Steve Case, the founder of AOL, and he fundraised the rest. All Rights Reserved. We're focused on bringing that production back from Mexico that has been shifted outside of the U.S. and bring that back into the U.S. in a controlled environment. I'm sure it was an exciting time. Jonathan Webb currently follows over 1 million people. Webb is a highly-respected knee surgeon in the United States. Then we'll be able to give that data over to the grocer in more real-time. Again, if you look at the U.S. right now, this is a USDA statistic, nearly 40% of fresh fruit and vegetables end up in a landfill. "We see this as a couple-decade journey, and really, we're in our first decade," Webb told Yahoo Finance's Julie Hyman at the 2022 SXSW Conference (video above). For young people, we've invested heavily in high school education here in this region and part of it is, we're not just building facilities, we're building an ecosystem and part of that is change the narrative that farming is simply outdoors and on a tractor, we very much respect American farmers, we have great respect for the four-season farmer that's putting food on our table but we have to get young people to think, the average age of the American farmer is about 60 years old, and so for us by investing in high schools, it's teaching young people you're operating a farm with an iPhone and iPad using industrial sensors, with robotics operating on AI. I think that's going to be something that just continues to get into the public's mind. I have a 16 and then going on 15-year-old daughters. Tomatoes will be the first fruit rolling out of AppHarvest's soon-to-launch facility in Morehead, Kentucky. AppHarvest knows its far from being the only player in the CEA game. I like thinking about a future where AppHarvest and companies like you all are helping make our food supply not only here domestically, but really around the world better, more reliable, more transparent. The first harvest at its Morehead facility is slated for early 2021. We'll talk a little bit about that in just a second. Powered and implemented by Interactive Data Managed Solutions. Other AppHarvest investors include TV cook Martha Stewart, VC veteran Peter Thiel, ValueAct Capitals Spring Fund, Revolutions Rise of the Rest Seed Fund, Equilibrium Capital, and Narya the new VC firm co-founded by JD Vance, author of best-selling Appalachian memoir Hillbilly Elegy. ", "It's easy to be a CEO that's looking for the next three months," Webb stated. You can also compare Dr. Webb with other orthopedic surgeons in Eau Claire to find the one that best suits your needs. Is there any one thing or is it a collection of many things? In addition to his numerous social media fans, Jonathan Webb has also embraced a low-key approach to his career. All of our water is captured on our roof. I don't think anybody thinks of farming from this perspective. That narrow focus on societal good is what has kept AppHarvest fully staffed throughout the pandemic. The greenhouse will cost $97 million and span 60 acres. Similarly, she owns yachts and private planes and serves on the board of the Women Golf Club Foundation. We can have all the technological tools in the world, but at the end of the day we have to put people at the center of the equation.. We always talk about investing for the future because that's really what investing is all about. That lowers transportation costs by 75%, allowing AppHarvest's fresher produce to better compete against low-cost foreign imports. You look at California and the Southwest of the U.S., drying up, drought-stricken, flagged by wildfires. A full transcript follows the video. Maintaining that inclusive work culture, especially since he works in agriculture, is incredibly important to Webb, who aims to do everything from a place of empathy and considers his employees to be his first customers. WebJonathan Webb. Even with the help of AI, farm work at AppHarvest is still hard, manual labor. It made good logistical sense since Kentucky is within a days drive of 70% of the United States, plus there was an untapped labor force there ready and waiting to be hired. You are speaking our language here at The Fool. CSC Leasing: Non-dilutive Funding for AgTech Startups, Americas Cultivation Corridor: We Grow AgTech Innovation, As demand for protein grows Sustainable Planet bets on water lentils as a viable alternative to soya, How not to fail in vertical farming: Be on guard for hubris, say Indoor Ag-Con speakers, International Fresh Produce Association launches 2023 Fresh Field Catalyst Accelerator program, BREAKING: Perfect Day animal-free dairy patent in US challenged, What is the role of biotech in an ethical food system? Webb: Well, the last great technological revolution in American farming is really when the tractor was introduced. You said that we're a technology company working to disrupt agriculture. We talk about how,