Vancouver-based Sustainable Produce Urban Delivery (SPUD) has been acquired by its San Francisco-based competitor, GrubMarket, for an undisclosed amount.
The news: GrubMarket announced on Tuesday that it has purchased fellow online grocery service SPUD from its private equity backer, Third Eye Capital. SPUD’s brick-and-mortar retail banners, Blush Lane Organic Market and Be Fresh Market, are not part of the deal and will continue on their own under Third Eye-backed ownership.
Much like GrubMarket, which pitches itself as an online farmers market, SPUD delivers fresh fresh food to customers’ doorsteps. By acquiring SPUD, GrubMarket said it can further expand its direct-to-consumer reach in British Columbia and Alberta under a well-established brand. As part of the deal, Third Eye is participating in GrubMarket’s Series H round.
From the source: “Our mission has always been to build a more sustainable food system by connecting Western Canadian communities with high quality, responsibly-sourced food,” SPUD CEO Claude Church said in a statement. “[W]e believe SPUD is well positioned to amplify its impact, strengthen its support for local farmers and producers, and reach more households that share our values.”
Following the thread: Founded in 1997 as Small Potatoes Urban Delivery, SPUD’s online groceries are delivered out of three distribution centers in Calgary, Edmonton, and Burnaby, BC, a physical footprint totalling over 85,000 square feet. Its network is sustained through partnerships with more than 800 local farmers, producers, and food entrepreneurs, according to GrubMarket.
The acquisition follows SPUD filing for creditor protection in 2022, a process that eventually led to Third Eye taking ownership of the brand and relaunching it in 2023.
Final thought: GrubMarket first expanded into Canada by acquiring Vancouver-based e-commerce startup Funtech in 2021. Its newest Canadian acquisition, SPUD, will continue to be managed by the existing team while GrubMarket integrates its technology platform, which includes numerous AI workflow and financial tools.
Feature image courtesy GrubMarket.