HYVE Indoor Growing Systems

This interview details HYVE, an indoor farming company based in the United States. The interview is with Ken Bryant, Director of Marketing of HYVE. 

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What is the origin story of HYVE?

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• History in LED Lighting
• HYVE was spawned by interest in our racking system and our history 
• At first questions and interest in the market were primarily focused on cannabis but then at a trade show we met a UNICEF representative looking to grow lettuce in Africa

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We are the American division of DASCOM, a prominent company with our Americas headquarters in Central Virginia and world headquarters in Hong Kong. We have several business units, one of which is dedicated to LED lighting. Our venture into LED lighting marks the starting point of our journey as HYVE.

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In the early days, we attended prominent international lighting exhibitions where we showcased a wide range of lights, including floodlights, high bay industrial lights, and lights for various commercial purposes. Among our lighting products, we also had LED grow lights. Looking back, I vividly recall attending these large trade shows where the majority of inquiries about LED grow lighting revolved around one particular question: "Can I use it to grow cannabis?" However, there was a moment of realization for me at one of these shows.

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A gentleman approached and surprisingly, his question was not related to cannabis. He introduced himself as a representative of UNICEF, working in Africa, and expressed a different need. He explained that he required LED grow lights to cultivate lettuce and provide sustenance for the people in his community. This encounter truly struck a chord with me.

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We have an incredible opportunity to accomplish a multitude of things here. The cannabis industry has gained significant traction, and many individuals are embracing it, however it is not our focal point (although we could provide a solution). After continued exhibition at shows, including those more in the greenhouse and horticulture industry, we found something that came as a surprise. People were not only impressed by the lighting itself but also equally fascinated by the racking system we used in our display. This realization served as a second "aha" moment, particularly among our executive leadership team. They returned from one show with particular enthusiasm and decided that we should talk with our engineering team about a more fully developed, large-scale, integrated system that combined our lighting and a very robust racking system.

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These ideas along with ingenuity of our engineering team marked the beginning of a new business unit. It was here that the genesis for HYVE actually began as we developed a hydroponic system based on combining our LED lighting with the racking, plumbing, and automation. Subsequently, we have further developed and refined the system and decided to brand the unit as HYVE, which is an abbreviation for “Hydroponic Vertical”.

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What are some of the biggest challenges facing your team in the future?

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• Price points versus traditional farming are the key challenge for HYVE and the industry
• Consumers need to be willing to pay more to drive demand
• We must have a model that proves our Return-On-Investment 
• Free Cash in the midst of rising interest rates is a challenge for large farms
• Educated and informed workforce with solid business plan – distribution channel development is a key for many “would be” farmers
• Learning curve in the nuances of indoor growing versus outdoor – challenging even with best systems

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What is unique about HYVE compared to competitors?

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• Complete system – EVERYTHING from one source – origin in lighting – invested in our own whereas most don’t have this advantage
• Full automation and now partnership with AGEYE takes our AI ability to an unmatched level
• Single-Source for every step of process and scalable to meet specific needs
• We develop, engineer, and manufacture the systems primarily in China and we develop systems to sell – we are not in the business of selling produce, but the means to grow the produce

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How do you measure the impact of your company so far? (Revenue, Employees, Customer Quantity, Production Volume) etc?

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• Just really beginning to see returns – largest HYVE install in North America is up and running
• Establishing Reseller Network for our Systems with experienced people who understand distribution channel
• Large installation is on course for Midwestern U.S. – already delivered and installation is beginning
• Extremely fortunate to have the support of Governor Youngkin and Secretary of Agriculture Matt Lohr – Virginia is VERY CEA-friendly

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What have we learned and would do differently?

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• We wish we had planned for the large number of people who had interest, but no real business plan
• We have rewritten our website to encourage prospects to think things through BEFORE they leap into something and create a lot of work for themselves and HYVE with no solid understanding of distribution channel – Most have only 1 or 2 of the 4 P’s in place – Product, Price, Promotion, Distribution (Place) – Most have no idea on the Distribution and Promotion aspect and this is a big challenge.
• Realization that even the best systems may not be intuitive so you must dot every I and cross every T – Just because you hand someone the best screwdriver, don’t assume they know how to use it.

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How can people connect with HYVE?

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Website: www.growhyve.com

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Phone: 540.904.4209

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Follow us on Facebook and LinkedIn

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