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According to Forbes research, 65% of consumers actively look for products that can help them live more sustainably, socially responsible and ethical lives, whether they’re shopping online, eating out or browsing their local supermarket.
The UK hospitality sector alone, which represents £60 billion in value, generates around 2 million tonnes of food waste annually. However, despite this astronomical contribution, it remains largely overlooked when it comes to environmentally conscious trends. When you visit a restaurant, the chance you leave knowing the carbon footprint of your meal, or the ingredients that went into it, are slim at best.
Founded in 2019, startup Pale Green Dot set out to make long overdue amends to the UK food system, specifically targeting the hospitality sector. The first and only* company in the UK to pioneer a ‘closed-loop food system’, Pale Green Dot collects food waste from commercial kitchens and transforms it into bio-fertiliser and energy, which is then fed back into the ground to grow next season’s produce. The produce is then delivered into commercial kitchens and homes across the country, completing a sustainable, circular solution that effectively tackles three of today’s greatest challenges: food sourcing, quality and waste. Pale Green Dot is now working with some of the UK’s top restaurants, contract caterers and hotels, to help all parties involved achieve their sustainability goals.
Despite the setbacks of the global health crisis and its impacts on the hospitality industry, it’s been an impressive few years for the startup which quickly adapted to a robust and scalable D2C model in just seven days. Pale Green Dot recorded 10x sales growth between March 2020 and 2021 and has on boarded a large UK contract caterer, in addition to several well known multi-site accounts such as Granger & Co and Caravan. Since the beginning of this year, the agritech has grows its commercial sales by 740% and achieved 600%** growth in B2B account spend. The outlook for the D2C side of the business has also exceeded expectations, with over 75% of customers favouring its subscription service over one-off purchases. Since the beginning of March 2020, Pale Green Dot has delivered over 80,000 boxes across the UK.
Revenue-generating since day one, Pale Green Dot has been laser focused on scalability. By growing some produce for their commercial partners themselves and focusing primarily on large corporates, the startup has been able to keep its operating costs low and effectively forecast the output of its farms to ensure minimal wastage throughout the supply chain. The company also runs its own recycling business which operates as a revenue stream in and of itself – whereby clients opt into a monthly subscription of bag purchases or larger contracts with bespoke pricing.
As the hospitality industry gets back on its feet, Pale Green Dot is well positioned to increase market share and deliver crucial benefits to our food system and the suppliers that operate within it. With over £400,000 already raised on Seedrs, Pale Green Dot aims to use the proceeds to boost its production, partner with more farms, build out its team and push through to profitability.
To find out more about Pale Green Dot, and for the opportunity to invest in building a better, more sustainable food system and future, visit the pitch now.
*Based on Pale Green Dot’s knowledge and research.
**Based on unaudited management accounts.