GrubMarket Expands Canadian Footprint With SPUD Acquisition
AI-generated image · Bay Street Wire
The San Francisco-based firm acquires the online grocery service from Third Eye Capital to scale direct-to-consumer operations in Western Canada.
San Francisco-based GrubMarket has acquired Vancouver-based online grocery service SPUD, according to reporting from BetaKit. The deal, announced Tuesday, sees GrubMarket purchase the company from private equity firm Third Eye Capital for an undisclosed sum.
GrubMarket intends to use the acquisition to grow its direct-to-consumer presence within Alberta and British Columbia. SPUD operates three distribution centers located in Burnaby, BC, Edmonton, and Calgary, totaling more than 85,000 square feet. The network is supported by partnerships with over 800 food entrepreneurs, producers, and local farmers, according to GrubMarket.
While SPUD will be integrated into GrubMarket's technology platform—which utilizes financial tools and AI workflows—the existing management team will remain in place. SPUD CEO Claude Church stated that the move positions the company to increase its impact and support for local producers.
Notably, the acquisition does not include SPUD's physical retail banners, Be Fresh Market and Blush Lane Organic Market; those entities will remain under the ownership of Third Eye Capital. As part of the transaction, Third Eye Capital is participating in GrubMarket's Series H funding round.
This move follows a period of volatility for SPUD, which filed for creditor protection in 2022 before Third Eye Capital took ownership and relaunched the brand in 2023. This is GrubMarket's second Canadian acquisition, following its 2021 purchase of the Vancouver-based e-commerce startup Funtech, as reported by BetaKit.