GrubMarket acquires SPUD

GrubMarket announced it has completed the acquisition of Vancouver, British Columbia-based Sustainable Produce Urban Delivery Inc. ("SPUD"). This strategic acquisition marks a key milestone for GrubMarket, expanding the company's B2C eCommerce reach in key Canadian markets across British Columbia and Alberta, with a strong and well-established brand.

Founded in Vancouver in 1997 as Small Potatoes Urban Delivery, SPUD has become one of Western Canada's leading online grocery businesses, known for connecting consumers with high-quality food sourced from hundreds of local farmers, ranchers, fishers, and artisan producers. The company operates three distribution centers totaling over 85,000 square feet in Burnaby, Calgary, and Edmonton. Its custom fleet of refrigerated vans helps ensure that the highest product quality is maintained through delivery to each customer's doorstep. SPUD offers a wide array of products ranging across the fresh produce, dairy, meat, seafood, and pantry categories, as well as prepared meals and artisanal goods.

SPUD stands out in the competitive grocery delivery marketplace by combining a seamless online shopping experience with a commitment to transparent supply chain practices and support for local agriculture. Through long-standing relationships with more than 800 local farmers, producers, and food entrepreneurs, SPUD has built one of Western Canada's most differentiated local food ecosystems. This network enables the company to offer customers exceptional freshness while supporting regional food production and reducing supply chain complexity.

Throughout its history, SPUD has demonstrated a steadfast commitment to advancing positive social and environmental outcomes through responsible business operations; for example, using reusable bins to reduce waste. Its sourcing strategy supports the local farming economy while mitigating the environmental impacts associated with complex and fragmented supply chains. The SPUD sourcing team also ensures that every product sold meets rigorous standards for both quality and environmental responsibility.

SPUD was backed by Third Eye Capital (TEC), a leading Canadian provider of flexible capital solutions to businesses undergoing change, challenge or complexity. SPUD's brick-and-mortar retail banners, Blush Lane Organic Market and Be Fresh Market, were not included in the transaction and will continue to operate separately under TEC-backed ownership.

Claude Church, CEO of SPUD, said: "This transaction represents an exciting new chapter for SPUD. Our mission has always been to build a more sustainable food system by connecting Western Canadian communities with high quality, responsibly-sourced food. With GrubMarket's technology, scale, and operational expertise, we 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."

The acquisition of SPUD represents synergies in both companies' growth trajectories as well as their shared passion for driving technology adoption across the food supply chain industry. With the addition of SPUD, GrubMarket continues to execute on its strategic plan to expand the reach of its B2C service offerings. Furthermore, TEC elected to participate in GrubMarket's Series H preferred stock financing to support the ongoing modernization of the food supply chain through GrubMarket's proprietary suite of AI-enabled products that improve efficiency and reduce waste.

Mike Xu, CEO of GrubMarket, added: "SPUD has built an impressive and trusted brand with a loyal customer base that values local sourcing, quality, and sustainability. We are excited to combine GrubMarket's extensive network, resources, and technology with SPUD's established operations and strong presence throughout Western Canada. Furthermore, our values align; like GrubMarket, SPUD has leveraged its successes to support local farmers and promote sustainable agricultural practices. This acquisition allows us to continue expanding our presence in Canada and strengthen our position in the food supply chain industry."

After the acquisition, SPUD will continue to be managed by its experienced team, ensuring continuity and ongoing operational excellence for customers and partners. Customers, suppliers and employees can expect to benefit from GrubMarket's technology platform, purchasing scale, and operational capabilities.

As part of GrubMarket's portfolio, SPUD will have access to GrubMarket's suite of proprietary AI-powered technology solutions, including WholesaleWare, a software-as-a-service (SaaS) ERP platform that provides food industry wholesalers, distributors, and shippers with seamless financial management, powerful sales support, precise inventory management, lot traceability, grower accounting, and automated routing and logistics; GrubAssist AI, GrubMarket's groundbreaking suite of agentic enterprise AI assistants that empower food supply chain businesses with deep insights, intelligent analysis, and workflow automation; Orders IO, GrubMarket's custom-branded mobile and online ordering eCommerce solution; and GrubPay, the company's digital payments platform specifically designed for the needs of the food supply chain industry.