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Plantaform lands Costco deal, hires veteran marketing exec to spark U.S. scaleup

October 25, 2024

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Buoyed by a recent move to dramatically boost its production capacity, Gatineau-based Plantaform has hired a veteran Ottawa tech executive to spearhead its U.S. marketing push. Founded four years ago, the local startup has developed a patented system that uses a technique pioneered by NASA to grow leafy greens, herbs and other vegetables in a "fog" of nutrient-enriched water vapour rather than soil. Plantaform, which used to manufacture its devices in-house with a handful of people, contracted production of its "smart indoor gardens" to fellow Gatineau firm Centre de Travail Laro in May. More than 40 Laro employees now assemble the electronic, plastic and other key components of the egg-shaped devices as well as conduct the initial testing after the units are completed. Plantaform co-founder and CEO Alberto Aguilar says the deal has increased his company’s output by 400 per cent as it prepares to enter the lucrative U.S. market. “One of the challenges of manufacturing in Canada is the high cost,” Aguilar explains. But he says partnering with Laro has allowed his company to scale up production without breaking the bank. The 45-year-old manufacturing firm, which employs dozens of workers with physical and cognitive disabilities, receives funding from the Quebec government – meaning it can charge less for its services than many competitors. With its production issues settled, Plantaform is getting serious about selling its devices south of the border. Last month, the company brought longtime Ottawa tech executive Renata Scorsone on board to lead its marketing efforts. Scorsone joined Plantaform after a decade as vice-president of marketing at Kanata-based Nuvyyo, where her main focus was drumming up interest south of the border for the firm’s platform that records over-the-air and internet-based TV broadcasts and streams them to devices such as smartphones. Under Scorsone’s leadership, Nuvyyo landed U.S. distribution deals with retail heavyweights Amazon and Best Buy, and its annual recurring revenues rose into the millions. In 2022, Nuvyyo was acquired by Cincinnati-based broadcasting firm E.W. Scripps for US$14 million.

'Hardware is a challenge'

Like Nuvyyo’s flagship Tablo DVR product, Plantaform’s system is a blend of hardware and software. As such, it’s a different beast from most made-in-Ottawa tech, which is pure software, explains Scorsone, describing her new role as providing “veteran input” on how to market Plantaform’s product to the masses. “Hardware is a challenge,” she says. “It takes a lot of money to build a product and launch a product. You’ve got two full supply chains, two full production lines (making hardware and software). Everything has to kind of come together. You need timelines. You need milestones. It does take a unique skillset. There are a lot of lessons learned, usually the hard way, in hardware.” Aguilar says Plantaform’s newest executive brings “huge value” to the company. “For the last four years, we’ve done a lot of grassroots efforts to build the product, gain some early traction, prove that there’s a demand,” he says. “To grow it, nobody on the team had that expertise. We’re still young and naive. So having Renata structure things … we’re hoping that will influence our growth in the United States.” Scorsone’s first chance to really evangelize the product will come in early January in Las Vegas, where she’ll be staffing Plantaform’s booth at CES, one of the world’s largest consumer electronics shows. She can’t wait. “Canada is a wonderful place to start out, invent the product and make sure you’ve got a good (product-market) fit,” she says. “When it comes to being able to expand your footprint, the U.S. is definitely the place to go. It’s going to be exciting.” On this side of the border, Plantaform recently landed a deal with Costco Wholesale Canada to sell its devices in Ontario and Quebec. Aguilar and his crew will hit the road starting in mid-November, travelling to eight of the big-box retailer’s stores in the two provinces to demonstrate Plantaform’s products. Costco’s initial order calls for 400 units, but Aguilar hopes that’s just the beginning of a partnership that will eventually expand across the country. The founders’ upcoming appearance on the popular CBC series Dragons’ Den could also stoke interest in Plantaform’s tech. The episode was taped in May, but Aguilar says he’s still not sure when it’s going to air. “A lot of my friends who were on (the show), their best sales spike came from Dragons’ Den,” he adds. “We’re really hopeful that Dragons’ Den is going to help us (get) exposure and create that demand that we’re looking for.” Meanwhile, Plantaform continues to make inroads in the Middle East, where Aguilar previously lived. Aguilar will be attending the final two Formula One races of the season next month in Qatar and Abu Dhabi, where they’ve scheduled dozens of meetings with potential investors. Many of those connections have come courtesy of F1 driver Yuki Tsunoda, a longtime friend of Plantaform co-founder Kiwa Lang who’s now an investor in the company. Plantaform is also working closely with the Canadian Trade Commissioner Service to line up potential partners and distributors in Dubai, Kuwait and Qatar. With the trade commission’s help, Aguilar says he’s confident the company will be exporting its technology to customers in the Middle East by next year. Indeed, scaling up takes plenty of cash, and fundraising remains top of mind for the CEO. Aguilar says the company expects to launch its next round in earnest in late November, with a target of US$3 million. “That raise will allow us to explosively grow,” he says. “We have lots of exciting things coming up, but without that raise, we’re not going to be able to excel.”