U.S. Markets closed
  • S&P 500

    3,351.64
    +53.18 (+1.61%)
     
  • Nasdaq

    11,117.53
    +203.96 (+1.87%)
     
  • Russell 2000

    1,514.19
    +39.28 (+2.66%)
     
  • Crude Oil

    40.59
    +0.34 (+0.84%)
     
  • Gold

    1,885.50
    +19.20 (+1.03%)
     
  • Silver

    23.82
    +0.72 (+3.13%)
     
  • EUR/USD

    1.1674
    +0.0039 (+0.3385%)
     
  • 10-Yr Bond

    0.6630
    +0.0040 (+0.61%)
     
  • Vix

    26.20
    -0.18 (-0.68%)
     
  • GBP/USD

    1.2836
    +0.0092 (+0.7188%)
     
  • BTC-USD

    10,879.29
    +100.48 (+0.93%)
     
  • CMC Crypto 200

    224.30
    +0.38 (+0.17%)
     
  • FTSE 100

    5,927.93
    +85.26 (+1.46%)
     
  • Nikkei 225

    23,511.62
    +307.00 (+1.32%)
     

Apeel Sciences Combats a Worrying Global Food Crisis

Josh Enomoto

The food industry is in a paradox. While advanced technologies and efficient manufacturing processes have greatly expanded production, we’re still suffering from a fundamental problem: food rots. Not only that, we waste a tremendous amount of food across the entire supply chain, from the point of production to the point where it enters your mouth. However, Apeel Sciences offers a groundbreaking solution, which has previously generated significant interest in Apeel stock through private investing channels.

Gold and silver gears with the words "private equity" written on the gold gears. apeel stock
Gold and silver gears with the words "private equity" written on the gold gears. apeel stock

Source: Pavel3d/ShutterStock.com

Presently, Apeel Sciences is a privately held corporation. However, it has sought fundraising via private investing, most recently in Series D offer announced on May 26, 2020. According to data from Crunchbase.com, Apeel has raised a total of $360.1 million across seven funding rounds. Therefore, it’s not inconceivable that the company will return to the well. If so, you’ll want to carefully consider Apeel stock.

First and foremost, food waste represents a massive crisis, both at home and throughout the international community. According to Apeel’s website, “40% of the food grown goes to waste.” That’s an alarming statistic, and it’s not at all unreasonable given the evidence. According to a U.N. Food and Agriculture Organization study, approximately 14% of the world’s food is lost before it even reaches retail.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

From there, myriad factors such as poor retail handling, lack of demand, and consumer oversight can rapidly see once-precious sustenance be tossed into the trash. More so than a financial cost – though it is incredibly steep – no one wants to see such waste, not when so many people suffer from malnourishment.

However, we don’t have to throw our hands up in the air anymore thanks to a pivotal innovation.

A Simple Fact Changed Everything for Apeel Stock

At the heart of the narrative for Apeel stock is a simple observation: some plant-based food products last longer than others. By applying an amphiphilic coating featuring the organic qualities of nature’s most resilient fruits and vegetables to those that are less durable, Apeel claims that it can dramatically increase the freshness and viability of coating-applied food products. According to Wired.com contributor Matt Simon:

A lime can last longer than a strawberry not so much because of the thickness of its skin, but because of the variation of cutin it employs. “It’s the same molecular building blocks that are being used in both situations,” says James Rogers, CEO of Apeel. “It’s just a difference in the arrangement of those molecules on the surface.” Call it synergy: A molecule ain’t nothin’ without its friends. The denser the arrangement, the longer the fruit can resist rot.

As Apeel states, it’s using food to preserve food. With its proprietary coating, oxygen stays on the outside of a treated fruit or vegetable, while revitalizing moisture stays on the inside. From the photographs that Apeel provides, the difference between treated and untreated plant-based product is vast.

Further, the potential demand base for such a product is massive, which is why Apeel stock has sparked massive interest among private investing circles. According to data compiled by Statista.com, Australia creates the most food waste, at 361 kilograms per capita every year. However, the U.S. is unfortunately no slouch in this department, producing 278 kilograms per capita.


Just by addressing these two nations alone, Apeel stock could potentially generate significant returns for investors. As well, Apeel Sciences could help close the gap between food producers and charitable organizations dedicated to feeding the hungry. By dramatically increasing the lifespan of food products, sustenance networks can likewise expand their impact.

It’s no surprise, then, that A-list celebrities like Oprah Winfrey and Katy Perry have endorsed Apeel. In addition, the Bill and Melinda Gates Foundation is among several key entities that have participated in Apeel’s private investing offers.

No Single Solution to the Food Waste Crisis

For now, Apeel Sciences is not raising funds. However, should an opportunity arise to acquire Apeel stock through crowdfunding measures, you should be aware of the risks associated with all private investing ventures.

First, such investments are typically illiquid. Once you make a commitment, you’re usually in the company for the long haul. Of course, the goal is to drive interest toward an initial public offering, whereby early-bird investors have a chance to realize generous profits.

Or, it can go the other way. Keep in mind that 90% of startups fail. Although an investment like Apeel stock, which enjoys significant backing and is underlined by substantive science, may overcome the poor probabilities, you don’t want to assume anything. Only invest capital that won’t kill you if you lose it.

Specifically for the business, Apeel stock has a major risk that cannot be ignored: no single solution exists for the food waste crisis. Wired.com’s Simon got right to the point:

A fancy lab-developed coating, though, isn’t going to revolutionize food production on its own. Because if you screw up the handling of your produce, no amount of coating is going to save you. Roughly handle a crop and you’ll pierce the produce, compromising its natural cutin barrier.

Moreover, it’s possible that individual consumers collectively waste the most food. If that’s the case, you’ve got to ask a cynical question: who cares if the consumer loses out? Indeed, the shortened shelf life of perishable goods may inspire greater consumption and therefore, more food purchases.

Since grocery stores operate on volume, increasing the viability of their perishables could end up hurting their profitability.

An Innovation That the World Needs

Ultimately, I think that Apeel Sciences is a fascinating concept. By integrating the best of nature’s designs and applying it to some of its less robust components, this innovation can revolutionize the global food supply chain. Sure, it will likely need help from other associated cogs, but this is a critical step in the right direction.

Should Apeel stock ever enter another round of funding, you’ll want to watch this opportunity closely.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities.

More From InvestorPlace

The post Apeel Sciences Combats a Worrying Global Food Crisis appeared first on InvestorPlace.