The consumer decides if vertical farming works

"Technology might be what powers the farm, but it is the consumer who ultimately decides whether it works. You can grow the best product in the world, but if people don't understand it, they won't buy it. That's why education has been just as important as production for us," says Kim Després, Senior Customer Marketing Manager at GoodLeaf Farms. The Canadian vertical farm is 20 minutes away from Quebec's largest city, Montreal.

Winter temperatures easily reach -10 there in winter, but that doesn't hurt local producers, as everyone is growing indoors during winter, given the short window for open-field production. GoodLeaf started its first farm in Ontario in 2019 and has spent the past few years navigating what it actually takes to build a retail category, not just a production system. Nicolas Tirard, Head Grower, and Kim Després each look at that challenge from a different angle, but arrive at the same conclusion. Growth is not just about yield or efficiency; it is about fit.

That difference shows up immediately in how consumers define local. Where most Canadians consider national products as local, Quebec draws a clear line around its own province. GoodLeaf responded by introducing "Les Fermes GoodLeaf", aligning with the market, culture, and language. "Quebec is something else. It's a small country within a country, so consumer behavior is different too." The Quebec market, as Kim describes it, behaves more like Europe, with a stronger tendency toward familiar products That translates directly into product decisions. "A mix that performs well in Quebec might not move at all in Ontario or Western Canada," forcing the team to rethink flavor profiles, formats, and even which crops to prioritize.

Same country, different preferences
Despite the geographic differences, Micro Arugula has emerged as the clear frontrunner nationwide. Preferences shift subtly depending on location, and the team has learned to adapt accordingly. "You really have to know your consumer," Kim says. Today, the firm sells more than five microgreen varieties, four salad mixes, and one baby greens variety.

While the company sees itself as a leader in the Canadian microgreens segment, adoption is still very much an active process. The product does not sell itself. "People don't all know what to do with microgreens or how nutritious they are. It requires a lot of education up until today. We have leaned heavily into our branding through in-store activations, brand ambassadors, and direct engagement with shoppers, which has become a standard practice today. Once consumers try it, they understand it. Getting them to that first moment is the real challenge," Kim says.

Data plays a key role here. Through loyalty programs and retail insights, GoodLeaf has developed a clear understanding of its customers and their behavior. That information feeds directly into tailored campaigns, so they know exactly who is most likely to pick it up. Pricing is largely dictated by retailers, leading to variations across chains. A product sold through Sobeys might be priced differently from the same product at Metro. On average, GoodLeaf salad mixes are found at Canadian retailers in packages of ~113g, priced at CAD 4.99-5.99, and microgreens, such as broccoli sprouts and arugula, at ~50g, priced at CAD 3.99-4.99.

Formed by alterations
"We learned whilst growing. What you see today is a version shaped by changes," says Nicolas. The farm holds eight grow rooms, each designed to have its own climate. "Air moves from one side of the room to the other, before being processed through heating and cooling systems to regulate temperature and humidity. It is a continuous loop, built to eliminate fluctuations as much as possible." The water handling system has three separate loops, handling irrigation, filtration, and reuse, including ozone injection and multi-stage filtration. "We want it to be efficient and reliable, not overly complicated to avoid high operation costs."

Lighting is predominantly red, with blue spectra depending on the crop. All rooms hold 4 racks of 8 layers, with automated benches moving through the system, and harvesting by forklifts. Propagation is handled separately, using tray-based systems stacked up to twenty layers before plants are transferred into the grow rooms.

How much automation is used in the farm? "Automation does play a role, but not in the way often associated with vertical farming. In fact, parts of it have been scaled back over time. It's about smart automation. That's why the system is built around predictability and flexibility," Nicolas explains. "In reality, that means continuously evaluating whether automation adds value, or simply costs. In several cases, manual processes proved to be more efficient." The same logic applies to packaging. Full automation would require a significant upfront investment, whereas manual labor allows the operation to scale more gradually. "It is a trade-off between capital intensity and flexibility."

Not without a hurdle
The most stable element in GoodLeaf's model is energy. The farm operates on fixed pricing sourced from renewable hydropower, providing decent predictability. Still, regional differences remain. In the West, fluctuating energy prices sometimes require adjustments, such as dimming the lights to manage costs. That's what the team has seen at the Calgary farm in Alberta, which they have stabilized today.

"There have been some hiccups," both Kim and Nicolas acknowledge. The industry has had quite some hits, and Canada hasn't been able to stay away from this either. With government support and investor trust, GoodLeaf has been able to pick up the pieces. "We have demonstrated an ability to achieve farm-level profitability. Our investors are incredibly supportive, and we are demonstrating consistent year-over-year growth. Our company is built on consumer-led benefits; the technology and controlled environment behind our farming is just the enabler," says Nicolas.

Even then, challenges remain visible on the shelf. Not every product performs as expected, and shelf life continues to influence turnover. In some cases, products remain unsold longer than anticipated, highlighting the ongoing balance between production and demand. "We're not just growing crops," Kim says. "We're building a category."

For more information:
GoodLeaf Farms
Kim Després Thibodeau, Senior Customer Marketing Manager
www.goodleaffarms.com

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