Revolutionizing Food Supply Chains: How Permanent is Connecting Farms to Commercial Buyers

In the midst of the COVID-19 pandemic, Wiley Webb embarked on a year-long journey with his wife to uncover the most pressing issues plaguing the food system. Through conversations with over 70 farms, Webb consistently heard one resounding need: more buyers. Simultaneously, large commercial buyers expressed their struggle to find and onboard new suppliers, citing the slow and opaque nature of procurement processes. Determined to bridge this gap, Webb founded Permanent, a B-Corp startup aiming to transform the food distribution landscape.

Unlocking Transparency and Efficiency in the Food Supply Chain

Connecting Farms to Commercial Buyers

Permanent's mission is to be a new type of food distributor, focused on forging connections between commercial buyers and farms that employ regenerative farming practices or are owned by diverse farmers. By providing a centralized marketplace, Permanent aims to address the longstanding challenge of availability and logistics that has plagued the food industry. Large corporate buyers can now browse Permanent's platform to discover in-season, locally-sourced produce, helping them optimize their distribution costs and reduce their environmental footprint.

Harnessing the Power of AI

Permanent's innovative approach extends beyond its marketplace functionality. The company has integrated AI-powered layers to predict seasonal availability and seamlessly integrate new suppliers into existing distribution and supply chains. This technology-driven solution empowers procurement teams to efficiently source better-quality foods at competitive prices, revolutionizing the way businesses approach their food sourcing strategies.

Facilitating Custom Growing Contracts

Permanent's platform also serves as a conduit for custom growing contracts, enabling businesses to forge direct partnerships with farms that align with their sustainability and diversity goals. For instance, the salad chain Sweetgreen has leveraged Permanent to transition its sweet potato source from a large commercial farm to a small, women-owned farm that is transitioning to organic practices.

Expanding Reach and Impact

Since its launch in 2023, Permanent has already established partnerships with 60 farms in California, with 50% of them owned by women or individuals of color. The company has also secured 20 commercial customers, ranging from well-known brands like Sweetgreen and Kettle and Fire to sizable school districts and universities.Recognizing the need for continued growth and expansion, Permanent recently raised a $3.7 million seed round, led by Better Tomorrow Ventures with participation from Atman Capital, Autopilot, and Gaingels, among others. The company plans to use this funding to strengthen its supply chain, sales, and technology teams, while expanding its reach across the United States. While the initial focus has been on the West Coast, particularly California, Permanent aims to become a nationwide player by 2027.

Balancing Principles and Pragmatism

Permanent's commitment to promoting regenerative and organic farming practices is commendable, but the company also acknowledges the realities of the current food market. The company has been selective in its supplier onboarding, maintaining a flexible definition of "regenerative" to cater to the diverse needs of its commercial customers. This pragmatic approach allows Permanent to work with both large commercial enterprises and small, immigrant-owned businesses, ensuring that its offerings remain relevant and accessible to a wide range of buyers.

Envisioning the Future of Food Distribution

Looking ahead, Permanent plans to expand its services beyond the core marketplace, exploring the addition of financial features such as lending and cash flow management. By continuously adapting to the evolving needs of its customers and suppliers, Permanent aims to become a comprehensive solution for the food industry, driving transparency, efficiency, and sustainability throughout the supply chain.As the food system grapples with the challenges of the modern era, Permanent's innovative approach offers a glimmer of hope. By empowering farms, promoting regenerative practices, and connecting them to commercial buyers, the company is poised to reshape the way we source, distribute, and consume food, ultimately paving the way for a more resilient and equitable food system.