After a decade of operation, vertical farming company Growcer shows how a steady approach to growth has brought stability in a field that has seen its share of challenges.
The Ottawa-based business was awarded the Governor General’s Innovation Award earlier this year for its unique methods concerning food sovereignty and sustainable practices in food production.
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WHY IT MATTERS: Indoor agriculture, including containerized systems, might greatly enhance local food security.
Growcer creates modular container units designed for growing herbs and leafy greens. This includes hydroponic systems, which the company is well known for, along with modular root cellars, community fridges, and food processing units. Buyers receive operational training and ongoing support with each unit.
Now active in 40 countries, Growcer started out in the Canadian Arctic.
“We volunteered for four or five years in Iqaluit and got to know some locals involved in the food security community there. We found out that one of the main issues was just getting food delivered, and often it arrived wilted and unappealing after just a few days,” says Corey Ellis, chief executive officer and co-founder of Growcer.
“We began thinking about solutions and teamed up with several communities in the north over the following years. We set up the world’s first indoor farms operating within the Arctic Circle. Those are still running strong today.”
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Thriving During Industry Consolidation
A general absence of profitability-partly due to poor design choices and inefficiencies-is often cited as an obstacle for some companies in vertical farming. Similar to the investment surge that followed cannabis legalization in 2018, the vertical farming industry is currently going through consolidation. “It’s kind of slowed down lately. There was a lot of early investment, but we’ve seen failures or projects that weren’t financially viable,” notes Luca Galler, a master’s student studying containerized food production systems at the University of Guelph’s Controlled Environment Systems Research Facility. “Sometimes we were trying too hard to reinvent things…you’d see these really tall stacking systems needing cranes to access the top. That becomes inefficient quickly,” he explains. “I think we may have tried too much all at once.” Alida Burke and Corey Ellis, co-founders of Growcer. Photo: Courtesy Growcer photo: Courtesy Growcer Ellis and his co-founder Alida Burke managed to steer clear of the investment bubble partly by not seeking outside funding initially. A few years after establishing themselves in Canada’s north, they pitched for investment on Dragon’s Den but turned down all offers; however, Ellis says “it provided great visibility” from a customer acquisition angle. “We went on to partner with several large food service companies. So we moved beyond just serving Arctic communities; we also engaged with established players who import all their vegetables. Clearly they need high-quality products at competitive prices. We began working with firms that manage cafeterias as well as mine sites-that was another significant area,” Ellis mentions. “We really grew our business organically without raising funds during our first seven years.” In 2025, Growcer purchased Freight Farms – its largest competitor based in the U. S. “Our entire industry is undergoing a contraction phase. Some people had unrealistic growth expectations which led them to create unsustainable businesses. We’re fortunate because having built our company without many investors allowed us sustainability from day one,” Ellis states. “Ultimately, you have to understand that many were created mainly for investors instead of solving actual customer problems…it isn’t contraction just for contraction’s sake; it’s more about returning to where things should’ve been all along.”Managing Profit Expectations
The challenges facing containerized production are numerous. Profit margins within vertical systems aren’t as high as some would prefer while currently only herbs and leafy greens can be viably grown. Leafy greens growing in a Growcer system. Photo: Courtesy Growcer Ellis advises Growcer clients not to “bite off more than they can chew” regarding their modular setups while encouraging them to set practical return expectations. “The secret to being profitable here lies within clear expectations first off; then you need skilled operators who manage costs effectively while keeping an eye on yield counts,” he explains further.” If you’ve got those factors right along with average electricity and labor costs found across Canada, profitability is attainable.” He adds: “You won’t make 50 percent margins; expect around 20 percent margins instead-that’s just part of farming life! It’s feasible but not guaranteed everywhere; not everyone should dive into this-setting realistic expectations matters most.” Looking ahead toward future goals; Ellis plans strategic assessments focused on international markets presenting promising growth potential while actively seeking distribution partners as well as evaluating crop types suitable locally.” Across sectors Galler emphasizes continued research into various aspects like lighting optimization improvements energy efficiency advancements higher-value cropping options remain priorities moving forward.” p>“We’re currently focusing on scientific aspects,” she adds.” We’ve conducted studies proving vertical farms can be economically sound! Right now though we’re navigating tight profit margins-which will improve over time!” She continues,” It’s simply about setting everything up correctly again similar kinks exist across different industries requiring resolution-this remains vital long term especially important towards Canadian agriculture moving ahead.”Source link
