Apeel Science

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This proposed equity investment of up to US$15 million in Apeel Sciences (“Apeel” or “the company”) - (https://apeelsciences.com/) - is to support its commercial expansion of its proprietary products – edible coatings – used for extending quality and shelf life of fruits and vegetables (e.g. avocados, limes, apples) amongst the emerging market retailers and suppliers in Mexico, Peru and South Africa. This financing will complement an IFC advisory engagement to set-up pilots with retailers, expand its footprint of existing suppliers and draw in new suppliers.Apeel Sciences’ plant-derived coating (lipid-based product) for fruits and vegetables is safe, made from naturally occurring products, and its application has proven in the market to give 1.5x or greater shelf-life extension, significantly reducing costs of shrink, spoilage and water usage, and increasing produce quality. Apeel’s coating has demonstrated its efficacy across 30+ fruits and vegetable categories. By focusing on the issue of perishability and reducing the rate of spoilage across the entire value chain, Apeel products provide numerous sustainability benefits, such as (i) reduction in food loss and waste; (ii) elimination or reduction in need for single-use plastic packaging; (iii) decreased reliance on cold chain infrastructure; (iv) logistic shifts to lower-emission transportation  modes (e.g. air freight to sea freight); (v) creation of market linkages that increase the participation in the global supply chain; and, finally (vi) increased access to fresh fruits and vegetables. The ingredients in Apeel’s products are designated as FDA GRAS or “Generally Recognized As Safe” and have a substantial history of safe use. Additionally, the Codex Alimentarius’ General Standard for Food Additives (GSFA) has authorized the use of the ingredients in Apeel in over 25 food categories, including infant formulae as well as surface-treated fresh fruits and vegetables. Apeel offers products for both conventional and USDA organic certified organic producers and is allowed for us in a variety of markets including the United States, Canada, Mexico, Chile, Peru, Costa Rica, the European Union, South Africa, China, and Japan, among others.Apeel’s products are manufactured in a powder form at its food-controlled facility located in Goleta, California (USA). This facility is located in a business park. The powder is packaged and shipped to a customer’s integration site (e.g. an agri-produce packing house owned by a grower, packer, importer or distributor) where the powder is mixed in solution with water and sprayed onto the produce before it is packed and distributed to retail stores. This process is typically in-line with the standard sorting and packing procedures of the produce packing houses. Aside from its HQ/food-controlled facility in California, Apeel has commercial offices in Europe (The Netherlands), Latin America (Mexico) and the USA.