Beyond The Headlines: Subway sandwich chain sells to Roark Capital, Asia vertical farm boost

25 Aug 2023 --- In this week’s news, sandwich chain Subway is set to be acquired by private equity firm Roark Capital. FarmByte and Archisen, an agri-tech company from Singapore, have agreed to establish a joint venture in urban farming that will focus on creating an automated vertical indoor farm dedicated to producing Asian greens in Malaysia. Meanwhile, the first UK sheep genetics exports (ovine embryos) have been shipped to the US.

In brief: Business 
Subway has entered into a definitive agreement to be acquired by affiliates of Roark Capital. The transaction is a “major milestone in Subway's multi-year transformation journey, combining Subway's global presence and brand strength with Roark's deep expertise in restaurant and franchise business models,” notes the sandwich chain. Roark is a private equity firm which focuses on investments in consumer and business service companies, with a specialization in franchise and franchise-like businesses. Subway will continue to execute its strategy with a focus on sales growth, menu innovation, modernization of restaurants, overall guest experience improvements and international expansion. The terms of the sale have not been revealed. 

Lifeway Foods has announced plans to increase cheese production along with investments in technology that will cut production time by more than half. (Image credit: Lifeway Foods).Lifeway Foods, a US supplier of kefir and fermented probiotic products to support the microbiome, has announced plans to increase cheese production, along with investments in technology that will cut production time by more than half. The company will be implementing new automation and efficiency plans to ensure the brand is equipped for future demand and potential distribution opportunities. Lifeway Farmer Cheese has a flavor similar to cottage cheese, spreads like cream cheese and has the added benefits of protein and probiotics. It's up to 99% lactose-free, gluten-free and contains no added salt.

In brief: Sustainability 
FarmByte, a digital-first agro-food company part of the Johor Corporation Group, has formalized an agreement with Archisen, an agri-tech company from Singapore, to establish a joint venture in urban farming that will focus on creating an automated vertical indoor farm dedicated to producing Asian greens in Johor, Malaysia. Vertical farming has risen in Singapore and Malaysia, reflecting their intensified focus on food security and the pursuit of self-reliance. Singapore’s “30 by 30” initiative has spurred the acceleration of vertical farming, as the nation aims to have 30% of its nutritional needs locally produced by 2030. Similarly, the Malaysian government has strongly emphasized increasing local food production and the self-sufficiency ratio of main food products like fruits and vegetables. 

Blueberry harvesting is in full swing in the Northern Hemisphere. The results of trials conducted on blueberries after using innovative technology with a patented 1-MCP delivery system indicated a slower ripening effect. Treated blueberries maintained good eating quality and firmness for 49 days of the test. Vidre+ technology is a patented system for 1-MCP to begin release 1-2 hours after packaging and gradually release within the packaging itself over 30 hours via a simple-to-use sticker. The release of the product is triggered by humidity within the packaged product. This technology can now protect ethylene - a gas and natural plant hormone that plays an important role both in ripening and fruit softening and degradation. The trials were commissioned by Fresh Inset and led by Dorota Wichrowska, Ph.D., from the University of Science and Technology in Poland.

In brief: Innovation & NPD
Seeds of Change, part of Mars, has introduced its innovation called Super Grains, which leverages three cuisine-based flavor varieties: Tuscan Herbs, Indian Style and Smoky Southwest. The line provides a plant-based protein source with no artificial colors or flavors. This ancient grain blend adds protein and plant-based fiber. The products, which use grains like sorghum, millet and quinoa, will be available in major retailers nationwide in 2024 after an initial launch in US Whole Foods Market stores. 

Pioneer in cellular agriculture technologies and products, Cult Food Science Corp, has partnered with Korean pet foods start-up Everything But to supply cell-cultivated chicken for the company’s stable, sustainable pet food brands. In collaboration with Everything But, the company will include cell-cultivated chicken in its dog and cat food brands, including Noochies! Cultivated Pet Food, Marina Cat and Indiana Pet Foods.

In brief: Other highlightsSeeds of Change has introduced its innovation called Super Grains, that provides a plant-based protein source with no artificial colors or flavors. (Image credit: Seeds of Change).
The first UK sheep genetics exports (ovine embryos) have been shipped to the US as part of a wider access agreement involving the Agriculture and Horticulture Development Board, enabling UK lamb exports to the US. It follows the enactment of US legislation in 2021 that lifted a 33-year US embargo on lamb and ovine embryos from countries previously affected by Bovine Spongiform Encephalopathy (BSE), a progressive neurological disorder of cattle. The shipment is the first of what is hoped to be a regular trade in ovine genetics. Using imported UK embryos will allow US producers to gain full pedigree status for a breed within one generation. It may take 10 to 15 years to reach the purebred level grading up using imported pedigree semen. UK embryo genetics will also benefit popular US commercial meat-producing breeds like the Suffolk.

Farmland, a fund manager specializing in organic farmland, announced the launch of its US$250M Vital Farmland III (Fund III), its third and largest fund to date. Fund III will extend Farmland's mission of transforming conventional farms into dynamic, sustainable and organic operations, catering to the surging consumer demand for food products derived from organic and regeneratively farmed sources.

By Gaynor Selby