This week in Santa Cruz County business: Legal battle over berry breeds goes on; Joby’s latest steps

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.

Driscoll’s could appeal federal court’s dismissal of berry patent lawsuit 

Watsonville berry giant Driscoll’s filed what’s known as a protective appeal this month in a federal lawsuit over strawberry varieties.

Last month, a federal court dismissed Driscoll’s lawsuit against another California plant-breeding company. In the suit, filed in 2019, Driscoll’s accused California Berry Cultivars of infringing on patents for four of its strawberry varieties. Driscoll’s claimed the other company improperly used proprietary strawberry varieties in its breeding program. A judge in the U.S. District Court for the Eastern District of California essentially rejected the suit, ending the case before it could proceed to trial.

Now, Driscoll’s seeks to challenge that judgment.

“We disagree with the judge’s dismissal of the case for lack of evidence,” Driscoll’s CEO Soren Bjorn said in a statement. “California Berry Cultivars’ own breeding records, which were admitted before the court, clearly show California Berry Cultivars used Driscoll’s patented varieties without authorization. We believe in a fair and competitive marketplace, which includes respecting intellectual property rights, and we will pursue those who misappropriate our plants to breed their own varieties.”

Bjorn said that because Driscoll’s doesn’t sell its plants, there’s no legitimate way for California Berry Cultivars to have obtained the patented varieties it used in its breeding program. 

If the appeal moves forward, it will be reviewed by a federal appellate judge. However, the appeal could be put on hold pending final review of the initial case; at issue are California Berry Cultivars’ remaining counterclaims, which the district court must decide on. 

In a statement released Wednesday, California Berry Cultivars criticized Driscoll’s appeal, and said, “California Berry Cultivars has consistently operated with integrity in its breeding programs and has successfully developed and commercially numerous strawberry varieties in compliance with settled law.” The company has accused Driscoll’s of “bullying” smaller organizations like its own. “We remain focused on innovation,” said Kyle VandenLangenberg, California Berry Cultivars’ director of research & development.

Joby Aviation announces simultaneous flight, new financial executive as it continues toward goal of launching commercial service by next year

As Santa Cruz-based Joby Aviation strives to launch commercial service for its electric air taxis, the company has marked a new milestone – flying two of its aircraft simultaneously.

The two-aircraft flight took place earlier this month in Marina, where the company operates a testing and manufacturing facility. 

Founder and CEO JoeBen Bevirt said in a statement that flying multiple aircraft at the same time will play an important role in accelerating the company’s Federal Aviation Administration (FAA) certification testing. That’s because in order to operate the type of service Joby intends, it will need to be able to fly several vehicles at the same time to serve customers efficiently. The company will soon have six aircraft in its fleet, and collectively, it has completed more than 40,000 miles of test flights across multiple aircraft.

Joby officials said earlier this year that they hope to start carrying the company’s first passengers aboard its electric air taxis as soon as late 2025 or early 2026. The electric air taxis are designed to carry a pilot and four passengers at speeds of up to 200 mph. When commercial service launches, the company plans to operate similarly to Uber or Lyft, with customers using a mobile app to hail a ride. Before that can happen, however, the company still has work to do before it completes the final steps of obtaining FAA certification.

Additionally, the company appointed a new chief financial officer, who will start May 29. Rodrigo Brumana most recently served as CFO at Poshmark, the popular marketplace for selling new and used clothing, and previously worked in financial operations at HP, Amazon and eBay. 

ICYMI: The changing face of downtown Santa Cruz – a retail coach and some feedback from locals

Lookout’s ongoing coverage of the changing nature of downtown Santa Cruz continues this week with a look at what city officials are doing to try to fill some of the area’s vacancies. Part of that strategy includes hiring a retail coach. As Christopher Neely reports, Charles Parker is a project director with Texas-based The Retail Coach, which works with cities around the country to help bring in new businesses, with a focus on national brands. Check out his story here.

Last week, Lookout’s intrepid photojournalist, Kevin Painchaud, pounded the pavement to hear from local residents about what they think of the changes happening downtown — and what they want to see happen next. Read that story here.

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

• Santa Cruz Athletic Club opens in Midtown: The new wellness and fitness center from the owners of Santa Cruz Power Fitness held its soft opening this past weekend. Santa Cruz Athletic Club took over the former Rite Aid store next to Whole Foods Market on Soquel Avenue in Santa Cruz. Owners Chris Ellis and Camile Periat told Lookout last year that the new facility would bring state-of-the-art equipment, an array of classes and other offerings that they say are unlike other gyms in the area. It also includes a heated yoga studio and recovery rooms.
• New owners take over beloved Harbor Café: The owners of artisanal salami company Foustman’s have joined a local restaurant vet to become the new owners of Harbor Café on 7th Avenue near the Santa Cruz Harbor. Lily Belli spoke with Hollis Oatey, Justin and Jessica Foust about their plans for the brunch mainstay here.
• Watsonville appoints new community development director: David Brletic is the new community development director for the City of Watsonville, overseeing planning, zoning and building projects. Brletic comes to this new role with 30 years of previous experience in city planning and development.
• Yvette Lopez Brooks joins Santa Cruz Area Chamber’s board: Yvette Lopez Brooks, the CEO of United Way of Santa Cruz County, was appointed to the chamber’s board of directors. She takes the seat previously held by former United Way CEO Keisha Browder.

• General Feed & Seed shuts its doors: After more than 50 years in business, General Feed & Seed off Soquel Drive has closed due to the owner’s retirement. The store, which had operated on Commercial Way, closed at the end of April. Max Chun has the scoop here.
• New board members for Monterey Bay Economic Partnership: Mark Delos Reyes Davis, vice chancellor for university advancement at UC Santa Cruz, is among four regional leaders appointed to MBEP’s board of directors. Last month, Reyes Davis was selected along with Hartnell College Superintendent/President Michael Gutierrez, San Benito County’s interim county administrative officer, Henie Ring, and Rene Mendez, Salinas’ city manager. Current board member Krista Snelling, the CEO and president of West Coast Community Bank, was named board chair. Santa Cruz County Superintendent of Schools Faris Sabbah will serve as vice chair, and Santa Cruz-based developer Benjamin Ow, president of Ow Commercial, was selected as treasurer.
• Humble Sea continues expansion with new S.F. location: Santa Cruz-based brewery Humble Sea Brewing Co. has opened its sixth location, at San Francisco’s Pier 39. It’s currently open only Fridays through Sundays, but more hours are expected soon. The brewery has also reopened its seasonal outdoor beer garden on the Santa Cruz Wharf. (Check out Lily Belli’s story from last year about the brewery’s San Francisco outpost.)
• Longtime county probation officer to retire: Fernando Giraldo will step down from his position as the chief probation officer for Santa Cruz County in July after 12 years in the role. Assistant Chief Probation Officer Valerie Thompson will serve as the interim chief while county officials seek a permanent replacement.

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

• ECM Case Manager at Front St. Inc
• Cook I at 1440 Multiversity
• Advocate III (Case Manager) at Community Bridges
• Director of Development, Arts at UC Santa Cruz
• Assistant Editor at Lookout Santa Cruz
• Chief Public Defender Investigator at The County of Santa Cruz

Want more? Browse all openings on our job board.

Hiring? Post your job today!

Looking at the numbers

• $1.43 billion: That’s how much visitors to Santa Cruz County spent in 2024, according to the latest numbers from Visit California, the state’s tourism organization. That includes money spent on hotels, vacation rentals, attractions and more. It was up slightly from 2023’s $1.4 billion, when Santa Cruz County marked the biggest pandemic recovery of any of the state’s 58 counties. It was the fourth consecutive year of tourism growth since 2020. State and local tax revenue generated by tourism accounted for nearly $120 million in the county last year, and the tourism industry supported 10,880 jobs locally. As the busy summer vacation season heats up, local tourism officials say they’re cautiously optimistic but expect to see a drop in international visitors this year. 
• 6.5%: That was the unemployment rate for Santa Cruz County in April, down from 7.1% in March. It was up slightly from April 2024’s 6.2% rate. Despite job losses in the trade/transportation/utilities, manufacturing, and professional and business services sectors, the county saw job gains in private education and health services, and hospitality and leisure, for a total net of 500 new jobs. 

Save the date 

• Wednesday, May 21: The eighth annual Santa Cruz Launchpad career fair and student pitch competition will be held at the Cocoanut Grove Ballroom. The student pitch competition takes place from noon to 4 p.m., with the job fair following from 5 to7  p.m. The event is free and open to the public, but advanced registration is requested. 
• Thursday, May 22: The Santa Cruz County Business Council will hold its annual meeting and mixer at the Community Foundation Santa Cruz County, 7807 Soquel Dr., Aptos. The event takes place from 4:30 to 6:30 p.m. County Supervisor Kim De Serpa will be the guest speaker. Details and registration here.
• Thursday, May 29: The Pajaro Valley Chamber of Commerce and Agriculture will hold a business mixer at California Coffee, 9105 Soquel Dr., Aptos. The evening includes networking, live music and refreshments, and runs from 5 to 7 p.m.
• Saturday, July 26: The Pajaro Valley Chamber of Commerce and Agriculture will hold its annual awards dinner and auction. The event takes place from 4 to 9 p.m. at the Santa Cruz County Fairgrounds. Details and tickets here.

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

Business news worth reading

• Santa Cruz passenger rail options outlined (Santa Cruz Local)
• The Bay Area has hundreds of below-market-rate apartments sitting vacant (The Mercury News)
• Chinese exporters are offering sweet deals to U.S. businesses. They often come wrapped in fraud (CNBC)

__

FOR THE RECORD: This story has been updated with a statement from California Berry Cultivars about its lawsuit with Driscoll’s.

__

Have something to say? Lookout welcomes letters to the editor, within our policies, from readers. Guidelines here.