Quick Take

A trio of lawsuits for a Watsonville berry giant, compounding woes for apple farmers in South County and beyond and numbers, names and dates to know – Jessica M. Pasko has it covered in her weekly survey of the Santa Cruz County business scene.

Each week, we’re 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.

Pesticide pushback takes center stage in three lawsuits involving Driscoll’s

Watsonville-headquartered berry giant Driscoll’s is the subject of new litigation alleging that the company isn’t being completely transparent about pesticide use by its growers – and in a third suit, the company accuses a startup of making false allegations about its practices.

In a class-action suit filed last month in federal court in San Jose, a group of citizens claims that the company has failed to disclose the presence of what are known as “forever chemicals” and is misleading customers. In another suit, filed in Ventura County, a former employee alleges he was retaliated against after he alerted his superiors to potential pesticide violations submitted by some of the company’s growers – and that he was forced to resign after he refused to help sweep it under the rug. And in yet a third suit, Driscoll’s is firing back at the founders of a farmers market locator app, arguing that the team behind Localize made false claims about Driscoll’s berries on social media to sow skepticism among consumers. 

Driscoll’s CEO Soren Bjorn at Watsonville’s Cassin Ranch. Credit: Kevin Painchaud / Lookout Santa Cruz

This latest trio of litigation comes as Driscoll’s faces increased scrutiny around the use of pesticides by growers it works with in the Pajaro Valley. Founded by two brothers-in-law in the early 1900s, Driscoll’s no longer grows its own berries. Instead, it works with hundreds of independent growers around the world to produce the specific strains of strawberries, blackberries, blueberries and raspberries the company has developed through years of research. Company leaders have said they work hard to ensure growers meet its high quality standards, food safety standards and legal requirements, but that can be more difficult in some developing countries in particular, as CEO Soren Bjorn told Lookout in 2024.

Read more here.

ICYMI: The root of the crisis: Martinelli’s contract cuts are just the latest blow to California apple farmers

A lack of regional infrastructure and competition from Washington state is forcing apple growers in Pajaro Valley to face difficult decisions about the future of the industry. Credit: Kevin Painchaud / Lookout Santa Cruz

Apple growers in the Pajaro Valley are under greater strain after cider giant Martinelli’s announced it was cutting contracts with some farmers, as Lily Belli reported earlier this year. For some longtime farmers, the loss of those contracts essentially meant the end for their apple-growing days. At least one farmer, Peter Knego, has begun ripping out his apple trees to make room for growing berries. For others, it’s kicked off a race to find other sources to buy their apples. 

In her latest reporting on this story, Lily Belli took a look at how Martinelli’s business decision was just the latest challenge local apple growers have faced. Changing consumer tastes, higher returns on berries and vegetables and the availability of cheaper fruit from Washington state are just some of the factors putting pressure on local growers. Read Lily’s full piece here.

Ch-ch-changes

  • New arcade opens in Capitola: Clever Unicorn, a new pinball-centric arcade, has opened inside the Capitola Mall. The new arcade, located in Suite F11, features more than two dozen pinball machines from seven decades, in addition to other classic arcade games. Prices vary by age of machine.
  • Local real estate agent gets national accolade: Longtime Santa Cruz County agent Robert Bailey has been honored with the distinguished service award from the National Association of Realtors. Bailey, who grew up in Aptos, joined the family real estate business at age 19 and has been working for Bailey Properties ever since. He was one of two people nationally to receive the recognition, which is given to those who display an “unwavering commitment to the organization and the real estate industry.”
  • Santa Cruz County-based Surfnet Communications gets state funding for broadband gaps: The California Public Utilities Commission last week voted to award up to $33,197,090 to locally owned Surfnet Communications to address infrastructure gaps in the regions that lack high-speed internet across locations in Santa Barbara, Santa Cruz, Santa Clara, San Luis Obispo and Monterey counties. State officials approved two grants from the California Advanced Services Fund’s Infrastructure Funding Account to bring connectivity to nearly 1,300 unserved locations within that five-county area. It’s part of continued efforts to improve internet access in the state, especially in rural areas where coverage is sometimes spotty, slow or nonexistent. State officials approved legislation in 2021 that allocated $6 billion to bring affordable, high-speed broadband services to all California residents.
  • Thai restaurant opens in Scotts Valley: Poon Sup Thai Cuisine is now serving customers from its location on Camp Evers Lane in Scotts Valley. The restaurant operates Monday through Saturday.

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

What’s new on the Lookout Job Board

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Looking at the numbers

  • 5.2%: That was the unemployment rate for Santa Cruz County in June, up from 5.1% in May but down from 5.8% in June 2025, according to state officials. The rate held steady with the state’s rate of 5.2% in June 2026, which was higher than the national rate of 4.4%. The county saw a net gain of 1,800 jobs in June, which accounted for gains in farming and leisure and hospitality as well as losses in the government sector. 

Save the date 

  • Friday, July 24: The Small Business Development Center of Northern California will host a “meet the lenders” event at the Santa Cruz Museum of Art & History from 4 to 6 p.m. Additional details and registration here.
  • Wednesday, July 29: Santa Cruz Works will hold its next CEO Luncheon with Toby Corey, a seasoned entrepreneur who is now the founder and CEO of BrandCapsule. The event takes place at productOps’ headquarters, 110 Cooper St., Suite 201, in downtown Santa Cruz. Registration and additional details are available here.
  • Thursday, July 30: The Santa Cruz Area Chamber of Commerce will hold its next Women in Business luncheon at Joby Aviation’s Santa Cruz headquarters. Joby executives will join Chamber Executive Director Kristen Brown for a roundtable. The event takes place from 11 a.m. to 1 p.m. at 377 Encinal St., Santa Cruz. Register here.
  • Thursday, July 30: The Santa Cruz Area Chamber of Commerce, Pajaro Valley Chamber of Commerce and Salinas Valley Chamber of Commerce will host a business after-hours event at K&D Landscaping in Watsonville, recognizing the business’ 40th anniversary. Networking and a ribbon-cutting will take place between 5 and 7 p.m. at 62C Hangar Way in Watsonville. 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

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Jessica M. Pasko has been writing professionally for almost two decades. She cut her teeth in journalism as a reporter for the Associated Press in her native Albany, New York, where she covered everything...