The Kroger Company diversifies its controlled-environment agriculture strategy

May 14, 2021 | Case Study

Major food retailers are testing the three basic distribution models – warehouse, decentralized, and household – associated with controlled-environment agriculture (CEA). The Kroger Company, the second-largest general retailer in the U.S., announced partnerships in November 2019 with two CEA startups, Infarm and 80 Acres Farms. Infarm employs the decentralized model by installing vertical farming systems in-store, while 80 Acres employs the more typical warehouse aggregation approach. Each of these models best aligns with markets at a local or regional level, depending on market factors like population density, cost and availability of real estate, and local regulatory policies.