Apeel Sciences, once a shining star in the world of food innovation, experienced a dramatic downturn, largely due to a relentless online misinformation campaign. In 2021, the Santa Barbara-based company, celebrated for its plant-based coatings that extend produce shelf-life, was thriving. With 450 employees, a valuation exceeding $2 billion, and partnerships with major supermarket chains, Apeel looked like an American success story. However, by 2023, the narrative shifted dramatically. The company, backed by investors like Temasek and celebrity Katy Perry, saw its staff dwindle to a mere 50 and most of its business move overseas. This stark decline wasn’t just a business misstep; it was the result of a coordinated online assault, branding its products as “literal poison,” a narrative that profoundly impacted its trajectory.
Dr. James Rogers, Apeel’s co-founder and a materials scientist, admits that the company faced internal challenges, initiating layoffs in 2022 to address “inefficiencies” even before the online attacks began in April 2023. Yet, the timing of the misinformation campaign couldn’t have been worse. Just as Apeel was diligently working to refine its business model and make its groundbreaking technology more accessible and cost-effective, a tide of falsehoods began to sweep across the internet. This digital onslaught led major customers like Costco, and potential partners such as Walmart and Kroger, to drop Apeel’s products. Rogers recalls the frustration, knowing that many of the very issues being weaponized against them were actively being resolved.
The initial iteration of Apeel’s breathable barrier, derived from plant side streams like grape seeds, was undoubtedly complex and expensive. It required specialized equipment, on-site mixing, drying, and a significant presence of Apeel staff at supplier locations. This logistical hurdle prompted a clear message from customers: “You have to figure out a better way to do business with us.” In response, Rogers and his team worked tirelessly to simplify the application process, dramatically reducing labor and equipment needs and cutting costs tenfold. This allowed Apeel to shift its focus from retailers to suppliers, broadening its reach. The second version of their product, a liquid that could be applied using existing packing house equipment and dried with minimal effort, was a game-changer – a testament to their engineers’ ingenuity and perseverance.
However, the timing of the online attacks, which gained momentum through 2024 and 2025, stifled these advancements. As Apeel was attempting to announce its new, more efficient supplier partnerships, the social media whirlwind hit. The attacks followed a predictable, insidious pattern: false claims of toxicity, chemical solvents, and even glyphosate contamination, often linking the company to Bill Gates, a figure frequently targeted in online conspiracy theories. Retailers, overwhelmed by the “noise” and under pressure from angry consumers, chose to distance themselves. Rogers recounts instances where companies like Limoneira backed out of deals and tomato and avocado producer Calavo Growers was asked by customers to stop using Apeel. The message from retailers was chillingly clear: “This isn’t our fight, and we just needed to pause until the noise died down.”
Initially advised to ignore the online vitriol, Rogers soon realized that silence only emboldened the attackers. He began to personally counter the misinformation with facts, an experience he describes as both bewildering and infuriating. While some honest mistakes were corrected, culminating in a public apology from Michelle Pfeiffer for sharing inaccurate information, Rogers discovered that many of the most prolific attackers weren’t merely confused. “This was a coordinated attack… and we hired a law firm,” he states, highlighting the deliberate nature of the campaign. The lawsuit against wellness influencer Robyn Openshaw and GreenSmoothieGirl.com Inc. revealed a calculated strategy to generate engagement and sell products by discrediting Apeel. This tactic exemplifies a broader trend where initial regulatory filings and early statements, detailing ingredients and processes never commercialized, were weaponized against the company, giving false claims a dangerous veneer of credibility. Apeel’s experience mirrors that of other agrifoodtech companies and even cultivated meat producers, where critics selectively quote technical material to create a misleading narrative of harm, often linking products to figures like Bill Gates to fuel distrust.
The financial toll of this disinformation campaign was devastating. Apeel claims to have lost over 15 retail customers and more than $60 million in expected revenue, directly attributing over $28 million in lost existing and prospective deals with major players like Costco and Limoneira to Openshaw’s “false and misleading statements.” This collapse forced the company to cut approximately $35 million in operating costs and led to a crushing $36 million write-down of fixed assets and inventory. Rogers laments that at its peak, Apeel’s solution protected 60% of avocados in American grocery stores; today, that number stands at zero, a direct consequence of what he describes as a “coordinated, baseless, disinformation campaign.” The situation is “dystopian,” as Rogers puts it, seeing Apeel products thriving and advertised in European stores while being actively blocked in the United States. Despite the lingering misinformation online, the threat of legal action has prompted some retractions and apologies from prominent influencers, offering a glimmer of hope. Rogers also notes a subtle shift, with consumers in the US now advocating for Apeel, questioning why retailers offer traditional waxes and pesticides while sidelining a European-approved alternative. Apeel continues to innovate with its Fresh Formulaics line, introducing new “Protect” coatings to inhibit mold and decay, and developing RipeTrack, an AI-powered tool that allows for more accurate, non-destructive fruit quality assessment, revolutionizing harvest and supply chain decisions. While the scars of the ordeal remain, Apeel is determined to rebuild, with improved cost structures and a renewed focus on global markets, particularly in Europe, where demand for cleaner ingredients is strong. Rogers’ ultimate dream is to see Apeel’s beneficial products replace waxes and synthetic pesticides not just in the US but across the world, a testament to his resilient vision for a more sustainable food system.