A modern vertical farm with stacked hydroponic systems growing lush green strawberry plants under LED lights. The clean, high-tech indoor facility features metal racks, automated irrigation tubes, and workers in uniforms inspecting the vibrant red strawberries.

In 2017, a 28-year-old Japanese student named Hiroki Koga arrived in New York City with a bold vision: to grow premium Japanese strawberries in a vertical farm and sell them to affluent New Yorkers for $50 a box. The tech world scoffed, dismissing it as another case of venture capital excess. Yet, by 2025, while many competitors faced bankruptcy, Oishii, co-founded by Koga and Brendan Somerville, thrives, having raised $50 million in 2021 and expanded its footprint. Dubbed the "Tesla of strawberries," Oishii is not just surviving but redefining the $20.9 billion vertical farming industry. This SEO-optimized blog post explores Oishii’s success story, the evolution of vertical farming, and how this innovative startup is reshaping agriculture with its Omakase berries.

The Vertical Farming Industry Before Oishii

The Roots of Vertical Farming

The concept of vertical farming emerged in 1999 when Dr. Dickson Despommier, a Columbia University professor, challenged his students to design a rooftop farm for urban environments. This thought experiment evolved into a global industry, with investors pouring $1.8 billion into vertical farming startups between 2014 and 2020 (TechCrunch). By 2025, projections estimate the market will reach $20.9 billion, driven by the promise of sustainable, year-round crop production (Grand View Research).

Before Oishii, vertical farming focused primarily on leafy greens like lettuce and kale, which are easier to grow and require no pollination. Companies like AeroFarms and Plenty capitalized on declining LED prices (down 94% from 2008 to 2015) to build high-tech indoor farms, promising greener, more efficient agriculture (Business Insider). The Netherlands, a pioneer in controlled environment agriculture (CEA), became the world’s second-largest agricultural exporter by leveraging greenhouses, using 70–95% less water than traditional farms (Forbes).

Challenges in Early Vertical Farming

Despite the hype, vertical farming faced significant hurdles. Traditional agriculture, while unpredictable due to weather, pests, and land scarcity, remained cost-competitive. Indoor farms, however, consumed vast amounts of energy—100 times more than outdoor lettuce growers in Arizona, according to a 2021 Global CEA census (CNBC). The energy crisis, exacerbated by COVID-19 supply chain disruptions and the 2022 Ukraine war, exposed this flaw. High energy costs led to the downfall of major players like Agricool, AppHarvest, and Infarm, with others like AeroFarms and Kalera downsizing or selling assets (TechCrunch).

The industry also suffered from overpromising. Startups pitched themselves as tech companies to attract Silicon Valley investors, but custom robotics and AI systems inflated costs without delivering profitability. Henry Gordon-Smith of Agritecture noted that most U.S. vertical farms were far from competing with field-grown produce at scale (Crunchbase). This "trough of disillusionment" in the Gartner Hype Cycle saw many ventures fail as investor enthusiasm waned.

Oishii’s Emergence: A Game-Changer in Vertical Farming

The Vision of Hiroki Koga

Hiroki Koga, a former vertical farming consultant in Japan, moved to the U.S. in 2015 to pursue an MBA at UC Berkeley. Disappointed by the flavorless, mass-produced strawberries in American supermarkets, he saw an opportunity to introduce Japan’s revered fruit culture to the U.S. In Japan, premium produce like Yubari melons ($70,000 for a pair) and Bijin-Hime strawberries ($448 each) are cherished as luxury gifts (Town & Country). Koga partnered with Brendan Somerville, a UCLA MBA graduate, to found Oishii in 2016, aiming to grow Japan’s Omakase strawberries—known for their sweetness, aroma, and creamy texture—in a 1,000-square-foot vertical farm in Kearny, New Jersey (Fast Company).

The Omakase Berry: A Luxury Product

Launched in 2018, the Omakase berry became an instant sensation, retailing at $50 for eight berries and earning praise from Michelin-starred chefs like Dominique Ansel (Oishii). Unlike conventional U.S. strawberries, which prioritize shelf life and transportability, Omakase berries are two to three times sweeter, with a Brix (sugar content) of 10–15 compared to 4–9 for standard varieties (CNBC). Grown pesticide-free in a controlled environment, they offer a “full sensory experience,” described as tasting like candy (Fast Company).

Oishii’s initial $50 price point (later reduced to $20 by 2022) targeted high-end consumers and restaurants in New York City, a market known for culinary decadence. This Tesla-inspired strategy—starting with a luxury product like the Roadster before scaling to mass-market offerings—allowed Oishii to generate strong cash flow while refining its technology (Forbes).

Technological Innovation

Oishii’s success hinges on its proprietary technology, particularly its bee pollination system. Strawberries, unlike leafy greens, require pollination, but bees struggle in artificial lighting. Koga’s team developed a method to “trick” bees into thriving indoors, achieving a 90%+ pollination success rate, a feat that makes strawberries economically viable (AgFunderNews). The farms also use AI-powered robots to monitor berry health, temperature, humidity, and light, replicating the Japanese Alps’ ideal conditions (Business Insider).

Located in Jersey City, Oishii’s 74,000-square-foot facility—the world’s largest vertical strawberry farm—opened in 2022, followed by a 240,000-square-foot farm in Lopatcong Township, New Jersey, in 2024 (Wikipedia). These farms use 90% less land and zero pesticides, delivering hyper-local produce to urban centers (Fast Company).

Oishii’s Contribution to the Vertical Farming Industry

Redefining the Business Model

While competitors focused on low-margin leafy greens, Oishii targeted high-value crops, proving that vertical farming could be profitable. Its $50 million Series A funding in 2021, led by SPARX Group’s Mirai Creation Fund (backed by Toyota and Sumitomo Mitsui Banking Corporation), with investors like Sony Innovation Fund, validated this approach (TechCrunch). Unlike others, Oishii avoided overhyping its technology, focusing on unit economics and consumer demand.

By 2023, Oishii introduced the Koyo berry, a tart, more affordable variety ($15 for six berries), and the Nikko berry, expanding its portfolio to reach broader markets (Oishii). Partnerships with Whole Foods and FreshDirect brought Omakase berries to New York, New Jersey, Connecticut, D.C., and Chicago, with plans for Los Angeles expansion (The Packer).

Sustainability and Scalability

Oishii’s farms are greener than traditional agriculture, using less water and no pesticides. By locating farms near urban centers, they reduce transportation emissions, with produce going from farm to table in minutes (Forbes). The company’s non-GMO certification and focus on transparency further enhance its appeal (Oishii).

Koga’s vision extends beyond strawberries. Oishii is developing other pollinated crops like tomatoes (e.g., the Rubī Tomato), melons, and peppers, leveraging its bee pollination technology (Crunchbase). This positions Oishii to dominate the $4 trillion global agriculture market (Forbes).

Surviving the Hype Cycle

Oishii’s success comes as vertical farming navigates the Gartner Hype Cycle’s “trough of disillusionment.” Koga, aware of Japan’s failed vertical farms in the early 2000s, avoided the pitfalls of overinvestment in unprofitable greens. “We chose strawberries because they’re the holy grail of vertical farming,” he said, noting their long cultivation cycle and high revenue potential (Food Navigator). This strategic focus has made Oishii a survivor in an industry littered with failures.

Challenges and Future Prospects

Industry Challenges

Vertical farming’s energy consumption remains a hurdle. Dutch indoor farms consume 8.2% of national energy, and rising costs have crippled competitors (CNBC). Oishii mitigates this by optimizing automation and focusing on high-margin products, but scaling to mass-market prices (e.g., $2.89 for 12 ounces, per USDA) requires further innovation (Fast Company).

Competition is another challenge. Bowery Farming and Plenty, despite setbacks, remain players, and traditional agriculture dominates low-cost produce. Oishii’s niche focus gives it an edge, but broadening its market without sacrificing quality is critical.

Oishii’s Path Forward

Oishii plans to lower prices further, with an “Everyday Berry” in development to compete with supermarket strawberries. Expansion into new cities and crops like tomatoes and melons could solidify its position. Collaborations with retailers like Whole Foods and potential partnerships with Walmart or Amazon could accelerate growth (The Packer).

The industry’s shift toward renewable energy and urban centers with cheap power (e.g., the Middle East) aligns with Oishii’s goals. As Koga noted, “Vertical farming will be instrumental in growing pesticide-free, sustainable food” (Built In NYC). By proving profitability, Oishii is paving the way for a more pragmatic, sustainable future for CEA.

Conclusion

Oishii’s journey from a $50 million startup to a vertical farming leader mirrors Tesla’s path from luxury to mainstream. Hiroki Koga’s strategic focus on high-end Omakase berries, innovative bee pollination, and AI-driven farming has not only defied critics but also set a new standard for agriculture. By addressing consumer demand for premium, sustainable produce, Oishii is driving the vertical farming industry toward profitability and scalability. As it expands its offerings and reach, Oishii proves that with the right vision, even a $50 strawberry can change the world.

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FAQs: Oishii and the Vertical Farming Industry

What is vertical farming?
Vertical farming is a form of controlled environment agriculture (CEA) where crops are grown in stacked layers indoors, using technologies like LED lights, AI, and robotics to optimize growth.
Why did vertical farming gain popularity?
It offers year-round production, uses less water, eliminates pesticides, and reduces transportation emissions by locating farms in urban areas.
What challenges does vertical farming face?
High energy consumption, rising costs, and competition from traditional agriculture limit scalability and profitability for many startups.
How does vertical farming impact the environment?
It reduces water use by 70–95% and eliminates pesticides, but high energy demands can offset sustainability gains unless renewable sources are used.
Why do vertical farms focus on high-value crops?
High-value crops like strawberries generate stronger revenue, offsetting energy costs and enabling profitability compared to low-margin greens.
What is the Gartner Hype Cycle in vertical farming?
It describes the industry’s journey from technological breakthrough to inflated expectations, followed by failures and eventual pragmatic growth.
How does vertical farming address food security?
By producing crops year-round in urban areas, it ensures consistent supply, reduces reliance on imports, and mitigates weather-related risks.
What role does AI play in vertical farming?
AI monitors environmental factors like light, humidity, and temperature, optimizing growth and reducing labor costs through automation.
How does vertical farming differ from traditional agriculture?
It uses controlled environments to eliminate weather risks, requires less land, and focuses on precision to maximize yield and quality.
Why is pollination a challenge in vertical farming?
Flowering crops like strawberries require pollination, but bees struggle in artificial lighting, necessitating innovative solutions or costly manual methods.
What societal impact does vertical farming have?
It promotes sustainable food production, supports urban agriculture, and educates consumers about cleaner, locally grown produce.
How does vertical farming align with gender-neutral trends?
Its focus on technology and sustainability appeals universally, with no gender-specific barriers in production or consumption.
What economic factors affect vertical farming?
Energy costs, labor, and competition with low-cost traditional produce challenge profitability, requiring strategic crop selection.
How does consumer demand shape vertical farming?
Demand for premium, pesticide-free, and locally grown produce drives investment in high-value crops like Oishii’s strawberries.
What is the future of vertical farming?
It will likely shift toward renewable energy, high-value crops, and urban expansion to achieve profitability and sustainability.
How does vertical farming preserve cultural heritage?
It enables the cultivation of rare, region-specific crops, like Oishii’s Omakase berries, preserving culinary traditions globally.
What are the ethical considerations in vertical farming?
Ethical sourcing, fair labor practices, and reducing energy consumption are critical to ensuring sustainable and equitable operations.
How does vertical farming adapt to dietary trends?
It offers non-GMO, pesticide-free produce, catering to vegan, organic, and health-conscious consumers.
What is the role of education in vertical farming?
Educating consumers about sustainable agriculture builds trust and drives demand for premium, locally grown products.
How does vertical farming address urban land scarcity?
By stacking crops vertically, it maximizes yield in small spaces, making agriculture viable in densely populated cities.
What is the significance of Oishii’s Omakase berry?
It’s a premium Japanese strawberry, two to three times sweeter than U.S. varieties, grown pesticide-free in vertical farms.
What other products does Oishii offer?
Besides Omakase berries, Oishii grows Koyo and Nikko berries and the Rubī Tomato, with plans for melons and peppers.
How sustainable is Oishii’s farming process?
It uses 90% less land, zero pesticides, and less water, with urban farms reducing transportation emissions.
Where can consumers buy Oishii’s berries?
They’re available at Whole Foods, FreshDirect, and Oishii’s website in New York, New Jersey, Connecticut, D.C., and Chicago.
Are Oishii’s berries non-GMO?
Yes, Oishii is certified by the Non-GMO Project, ensuring no genetic modifications in its produce.
What is Oishii’s pollination method?
It uses a proprietary bee pollination system, optimizing indoor environments for over 90% success.
How does Oishii ensure berry quality?
AI robots monitor growth, and lab tests measure Brix (sugar content) to ensure consistent sweetness and texture.
Why are Oishii’s berries expensive?
High energy costs, premium cultivars, and small-scale production drive prices, though they’ve dropped from $50 to $20 per tray.
Does Oishii ship nationwide?
No, it delivers within a 20-mile radius of its farms to preserve freshness, prioritizing quality over reach.
How does Oishii engage with customers?
Through social media, its website, and partnerships with retailers, it educates consumers about its premium produce.
What is Oishii’s expansion strategy?
It plans to open farms in new cities, develop affordable berry varieties, and expand into crops like tomatoes and melons.
How does Oishii compare to competitors?
Its focus on high-value strawberries and bee pollination sets it apart from leafy green-focused startups like Bowery Farming.
What is the price range for Oishii’s berries?
Trays range from $11 (three medium berries) to $50 (six First Flower berries), with most at $20.
How does Oishii handle customer feedback?
It responds to feedback via social media and its website, incorporating suggestions into new varieties.
What makes Oishii’s farms unique?
They replicate Japanese Alps conditions, use bee pollination, and employ AI for precision farming.
Are Oishii’s berries available year-round?
Yes, indoor farms enable consistent production, unlike seasonal outdoor strawberries.
How does Oishii contribute to New Jersey’s economy?
Its farms create jobs and attract tourism, boosting local economies in Jersey City and Lopatcong Township.
What is Oishii’s vision for the future?
To make premium, sustainable produce accessible globally, starting with high-value crops and scaling to mass markets.
How does Oishii ensure food safety?
Pesticide-free farming and controlled environments eliminate bacteria like E. coli, ensuring clean produce.
What is the customer experience with Oishii’s berries?
Consumers describe a sensory delight, with sweet, juicy berries evoking luxury and nostalgia.
How does Oishii collaborate with retailers?
Partnerships with Whole Foods and FreshDirect expand its reach, offering berries in select urban markets.