This week in Santa Cruz County business: Applying robotics to cannabis cultivation, seeking soda ambassadors and one entrepreneur’s permitting odyssey

Each week, we’ll be taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

NeatLeaf looks to transform cannabis cultivation with AI and robotics

What if you could take the robotics and artificial intelligence technology that’s driving some of the biggest innovations in Silicon Valley and apply it to agriculture? That’s the premise of the so-called fourth agricultural revolution, or Agriculture 4.0, and it’s what Elmar Mair is betting on with his company, Neatleaf.

Mair founded the company in 2020 with a goal of helping growers take better advantage of data and analytics to manage crops and boost yields in a more sustainable way. Earlier this year, the company got a $4 million boost in funding to help fuel this mission, which it first rolled out in the cannabis industry. 

While estimates vary, some analysts predict U.S. retail cannabis sales could reach upward of $53.5 billion by 2027, even as California state tax records show sales slumping over the past year. New markets continue to open, both domestically and internationally. It’s an industry with plenty of potential, but as Mair saw it, many of the agriculture processes were still stuck in the past. 

The company’s product, the Neatleaf Spyder, is essentially a farming robot that contains sensors that can analyze factors related to plant health (such as temperature, humidity and light intensity) in controlled environments like greenhouses and indoor farms. That data can then be used to make adjustments to meet the specific needs of each plant. It uses WiFi and Bluetooth technology, and is battery-operated, with solar panel options. The ability to precisely control the environment helps reduce waste and maximizes efficiency, according to Neatleaf. It’s now in use by growers around the U.S. and Canada, including three in the Monterey Bay area.

While Neatleaf is currently focusing its efforts on the cannabis industry, it’s not a cannabis-specific technology, said Mair. As the company continues to expand, bringing the technology to other crops is a key goal. 

Neatleaf’s main offices are in Scotts Valley, with nine employees; there’s also a second office in Munich, Germany. 

Read more about Neatleaf’s efforts here.

ICYMI: 483 days for 120 square feet – how Santa Cruz’s permitting process almost killed one entrepreneur’s dream

Winemaker Megan Bell had a vision to create a small tasting room in the Swift Street complex on the Westside, an area already flourishing with breweries, wineries and restaurants. Her 120-square-foot vision finally came to fruition in December when her brand, Margins Wine, opened its wine cubby around the corner from 11th Hour’s cafe. But it took more than a year, leaving Bell frustrated at nearly every turn as she navigated the permitting process and faced a massive amount of bureaucratic challenges. That included having to submit an application for a building permit four times, and waiting months for approvals, signatures and inspections, as she told Lookout’s Lily Belli. And her experience isn’t unique; some argue that the City of Santa Cruz’s business permitting system feels stacked against small entrepreneurs like Bell. Check out Lily’s full story here.

Olipop looking for “senior soda consultants” as part of new marketing campaign

Olipop has gained a major following, with its bright, colorful labels and its promise of a healthier soda-like beverage that still tastes good. Its products are made with prebiotics, special plant fibers that “feed” the microorganisms that live in our guts, and they are made without artificial sweeteners.

The company, which got its start in co-founder Ben Goodwin’s Santa Cruz garage, is now headquartered in Oakland and is aiming to surpass the $250 million in sales it raked in last year. As part of those efforts, the company has launched a hiring search for two “senior soda consultants,” who will travel to four cities in the U.S. this spring and summer to share the joys of Olipop.

According to the job posting, the company is looking for two friends to start their travels in early April in an as-yet-unnamed East Coast city. They’ll have to drink Olipop, take photos and post on social media, and for those efforts, they’ll each earn $5,000 per person per city, for a total of $40,000, plus Olipop will reimburse them for travel expenses, accommodations, food and other expenditures. The deadline for applications is March 22.

Ch-ch-changes: Openings, closings and other developments

• Grocery Outlet expanding to Capitola: Discount grocery chain Grocery Outlet plans to open a new store in Capitola, taking over the location that New Leaf Community Market is vacating. New Leaf plans to move to the former Lucky location in the King’s Plaza Shopping Center this year. The Santa Cruz Sentinel reports that Grocery Outlet will take over the company’s current location at 1210 41st Ave. in 2025. 
• Visit Santa Cruz County earns autism certification: The county’s tourism organization has been recognized as Certified Autism Travel Professionals through the International Board of Credentialing and Continuing Education Standards. The certification requires at least 80% of staff to undergo training focused on how to work with neurodiverse individuals and their families. CEO Terence Concannon calls it “an important first step for other tourism-related businesses within our industry to mirror as we move forward to be better equipped to interact with neurodiverse people across different settings.”
• Santa Cruz Mountain Brewing reopens under new ownership: The Westside taproom and brewery is back open for business after this past weekend, with new owners Brad Clark and Adair Paterno at the helm. The pair purchased the business from original owners Emily Thomas and Chad Brill in January. 
• Habitat for Humanity Monterey Bay launches CEO search: Nonprofit organization Habitat for Humanity Monterey Bay is seeking candidates to replace current CEO Satish Rishi, who is retiring July 31. Rishi has been with the organization for over four years, and the board of directors plans to appoint a successor by his retirement date. The ideal candidate will have a proven track record of organization leadership and community engagement, preferably in both Monterey and Santa Cruz counties. For more information about the position, go here.

Got hires, promotions or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Looking at the numbers

• $1,299,000: That’s how much it’ll cost you to purchase the former Bocci’s Cellar on Encinal Street in Santa Cruz. The business was one of the city’s oldest operating restaurants and music venues before it shut down amid the pandemic. While the bocce courts have been paved over, the sale includes the 3,200-square-foot, two-story main building and an additional office out back on an approximately 8,000-square-foot parcel. More details here.

Save the date

• Wednesday, March 13: Santa Cruz Works hosts “Remarkable AI,” featuring a book signing with Guy Kawasaki (see my interview in last week’s column) and presentations from industry leaders focused on emerging artificial intelligence technology. The event takes place from 6 to 8:30 p.m. at the Cocoanut Grove at the Santa Cruz Beach Boardwalk. Tickets range from $20-$50. More details, and registration, are here.
• Thursday, March 21: The Pajaro Valley and Aptos chambers of commerce will host a joint mixer at California Coffee at 9105 Soquel Dr. in Aptos with live music, beer, wine, coffee and appetizers. The event goes from 5 to 7 p.m. and costs $5 to attend.
• Thursday, April 11: The Santa Cruz County Chamber of Commerce will host its annual event honoring individuals, businesses and organizations for their contributions to the community. “A Night of Stars” takes place from 5:30 to 9 p.m. at the Cocoanut Grove Ballroom at the Santa Cruz Beach Boardwalk. Register here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

• A tech billionaire is quietly buying up land in Hawaii. No one knows why. (NPR)
• Internet provider gets $5.6M grant to boost regional broadband infrastructure, including Monterey and Santa Cruz counties (Monterey County Weekly)
• Macy’s to close historic San Francisco flagship in Union Square (San Francisco Business Times)

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