"Our product might sometimes be more costly, three times more than open field produce, but our customers prefer it because of the quality, cleanliness, and convenience," says Katashi Kai, CEO of 808 Factory.
Katashi Kai pictured in front of 808 Factory's Farm 1 facility
Despite the rising electricity costs, 808 Factory didn't have to compromise on its product prices yet. Katashi is clear about the company's philosophy, "We're not trying too hard to sell our products. The purpose of our product is not to offer lower prices, but to guarantee quantity, quality, and cleanliness through data. This approach resonates particularly well with supermarkets, where consumers are increasingly aware of the benefits of vertically farmed produce."
However, this public awareness didn't come just like that. 808 Factory invested heavily in marketing, especially through television commercials. Katashi explains that 808 has been thoroughly working on TV commercials with a 'playful concept', using famous actresses to explain the technology inside the plant factory. "These efforts have paid off, significantly expanding our customer base in supermarkets. For the supermarket, there's been a development of awareness about our produce, and marketing has been crucial in this."
808 Factory's product lineup includes four varieties of leafy greens, with frill lettuce and silk lettuce being particularly noteworthy. Silk lettuce, a very light and silky texture lettuce is very appealing to consumers," Katashi says. Unlike other plant factories in Japan, 808 Factory has developed unique indoor breeding programs to cater to both the processing and retail markets, ensuring that the taste, shape, and productivity of their products meet diverse market needs.
808 Factory's premises and solar park
Avoiding beginner's mistakes
"Before starting the business, I took all the Japan Plant Factory Association (JPFA) courses out there, to ensure I had a solid grasp on the engineering of vertical farms," Katashi explains. This practical knowledge allowed him to design a factory that was not only efficient but also scalable. "We never really had major issues scaling up, because we were prepared," he adds.
The company's first factory, launched in 2014, employed a Deep Flow Technique (DFT) system. Expanding on the lessons learned, 808 opened a second factory in 2017, which now operates using a Nutrient Film Technique (NFT) system. "Our facility is equipped with numerous solar panels that generate 700 kW per day, almost matching the factory's daily energy consumption. "We've made a lot of progress in improving energy efficiency, especially important given the rising electricity rates," says Katashi.
A sneak peek of the control room
Full-control
Today, the company's success lies in its hands-on hygiene- and data-driven management. By developing their transplanting systems and other technology in-house, 808 has been able to follow strict procedures, ensuring stable production at a large scale. This includes using cameras to monitor plants and accumulating data for continuous improvement. "Every detail matters when it comes to productivity, from labor efficiency to electricity consumption," he notes.
"Even though prices are higher than they were before, the key is to improve productivity. The tiniest details mean a lot for overall productivity, whether it's labor per hour, productivity per cultivation space, or electricity consumption. This focus on continuous improvement has allowed 808 Factory to remain profitable despite the industry's challenges," Katashi shares.
Another big improvement in energy efficiency and hygiene is the enhancement of hygiene management. Changing the structure of the racking system now features round-shaped poles that reduce dust accumulation, to the separation of the maintenance and machine rooms to prevent cross-contamination. "The tiniest bits of improvement have helped us massively in the bigger picture," Katashi concludes.
For more information:
808 Factory
+81 054 656 3808
Katashi Kai, CEO
www.808factory.jp
This article series is in collaboration with:
Japan Plant Factory Association
Eri Hayashi, President
[email protected]
www.npoplantfactory.org