Landec Subsidiary Forges Exclusive License Agreement With Canadian Greenhouse Operator

Landec Corporation, a company that develops and markets patented polymer products for food, agriculture and other applications, said that Apio, its subsidiary, has inked an exclusive license agreement with Canada-based Greenhouse Grown Foods (Windset Farms), a privately held produce company.

Apio has awarded an exclusive license to Windset to utilize Landec’s proprietary breathable packaging to expand the shelf life of specific greenhouse grown vegetables. Initial trials will cover cucumbers, and later peppers and tomatoes, specifically, grape, roma and cherry type tomatoes.

Windset will use the Landec technology and BreatheWay trademark in the production, marketing, distribution and sale of the exclusive products in the US and Canada within the exclusive licensed field.

Pursuant to the agreement, Apio will provide Windset with all necessary technical services and support regarding any future development of the technology. The initial term of the agreement for each exclusive product is for four years with automatic renewal of four year terms for each exclusive product, unless specific products are terminated.

According to the agreement, Apio will receive a one-time upfront research and development fee of $100,000 and ongoing license fees equal to 3% of net revenue of the exclusive products utilizing the proprietary breathable packaging technology, with or without the BreatheWay trademark.

The ongoing license fees are subject to annual minimums of $150,000 for each of the three types of exclusive product as each is added to the exclusive agreement.

Ron Midyett, chief executive officer of Apio, said: “This agreement is the culmination of over one year of effort by Apio to expand the application of Landec’s proprietary and patented technology for specific vegetable products.”

Steve Newell, CEO of Windset, said: “This long-term exclusive license is part of our strategy to develop and expand our existing line of products and customer base.

We believe that the combination of our production, marketing and distribution capabilities, along with the Landec technology and any further developments of the technology, will result in a profitable collaboration for both Windset and Landec/Apio.”

Windset Farms has properties in Delta, Abbotsford in British Columbia, and North Las Vegas, Nevada in the US. The farm produces, grades, packages and distributes vegetables to customers around North America.