They definitely missed the point about ugly fruit and vegetables. From speaking to some of the vendors of cheaper fruits and veggies at farmer's markets, some of them (but not all) buy the second dibs (what the supermarkets and their other obligations don't buy) as well as more irregular fruit and produce.

Now, of course there is a growing ugly fruit and vegetable movement[1]. It's becoming more mainstream and even Whole Foods is buying in[2]. There is an effort in Boston to provide good affordable ugly fruit and vegetables to underserved communities.

[1]http://www.eatingwell.com/food_news_origins/love_ugly_fruits...

[2]http://www.eater.com/2016/3/8/11178270/whole-foods-ugly-prod...