Apeel Sciences, a Santa Barbara-based startup, has seen its workforce dramatically reduced from 450 employees in 2021 to approximately 50 staff today. This downsizing occurred after the company, once valued at over $2 billion, spent the last three years battling a concerted online misinformation campaign.
The firm, known for its edible plant-based coatings designed to extend the shelf-life of fresh produce, faced significant challenges. Despite having raised $640 million from investors including Temasek and Katy Perry, its initial technology required bespoke equipment and extensive on-site support, making it costly and complex for partners.
The online attacks, which described Apeel's products as "literal poison," intensified between April 2023 and 2025. This misinformation led major customers like Costco, and potential partners including Walmart and Kroger, to disassociate from the company, impacting both its retail and emerging supplier businesses.
According to co-founder Dr. James Rogers, the company actively addressed inefficiencies and improved its product formulation, reducing application costs tenfold. The enhanced technology requires less specialized equipment and can be integrated into existing packhouse operations, aiming for a more scalable business model primarily overseas.