Oishii investment overview

Oishii is a vertical farming company currently specializing in producing premium-grade strawberries but has a pipeline of crops it will introduce over the years (tomatoes, grapes, melons, variety of berries, etc.). Oishii has managed to crack growing flowering crops on a mass scale.

Thesis snapshot

Although extremely unfortunate, the Ukraine crisis further exposed already glaring global food supply chain fragility and significant vulnerability. The crisis will prompt many countries to start working actively toward the goal of becoming self-sustainable to as large of an extent as possible. Vertical farming is one of the core technologies that will help countries bridge the dependence gap and drive their self-sustainability efforts in the long term.

Thesis points

  • Massive addressable market estimated at $6bn in US and $27bn annually, constrained by supply
  • Low competition as traditional growers cannot compete with year-round supply, while other vertical farming players face significant scaling obstacles
  • Announced Whole Foods as retail launch partner securing margins unheard of for this space
  • B2C business model, cutting out several parts of the value chain, enabling premium margins
  • Sensible unit economics, already achieving +50% facility GM%
  • Attractive value proposition, as we invested at +50% discount to comparable deals in the space

MCWIN FEF Value add

Once Oishii starts diversifying its business and begins introducing other flowering crops to the market, and doing that at price parity to conventionally produced vegetables and fruits, McWin will help Oishii penetrate QSR and food service market in Europe.

Offer significant support on international expansion, guiding the company in key strategic decisions. Moreover, McWin has significant ties to real estate developers, consultants, agents, and brokers in wider European region, which will prove especially beneficial to Oishii as they will look to build-out their farms throughout Europe.

We seek partnerships with leading investors deploying capital in unstoppable trends transforming the food and sustainability ecosystems. McWin provides not just this forward-thinking leadership, but a background of operating excellence and deep understanding of the nuts and bolts of complex businesses. And most importantly, the McWin team is a true believer in the quality and potential of Oishii's product.

Hiroki Koga, CEO