Online grocery seller and software-as-a-service platform GrubMarket announced its acquisition of A&B Tropical Produce on Dec. 20.
A&B Tropical Produce is based in Miami and provides Central and South American fruits and vegetables to the U.S. It specializes in plantains, yellow yams, yuca, avocados and dragon fruit from 11 countries in the region. The acquisition will allow GrubMarket to expand its East Coast presence and gain better standing in the food supply chain industry, it says. A&B currently sells 50 different commodities to 100 wholesale customers across North America, according to a statement.
“A&B is also strategically located near key Florida ports at the crossroads of North and South America, which will enable GrubMarket to strengthen our position not only on the East Coast but also in the global food supply chain,” GrubMarket CEO Mike Xu said in a written statement. “We are thrilled to welcome the A&B team to the GrubMarket family.”
What is GrubMarket?
GrubMarket connects farmers with consumers for home delivery. It also sells food to grocery retailers and restaurants. Walmart, Costco and Whole Foods are among its customers. GrubMarket operates in all 50 U.S. states along with parts of Canada, South America, Asia and Africa.
In 2021, it reached $1 billion in annual revenue and became one of the largest suppliers of South American produce to the U.S.
Other GrubMarket acquisitions
A&B became the latest in a string of acquisitions by Grubmarket in 2023. In October, GrubMarket acquired another produce wholesale business based in Philadelphia, PA China Farm. The business specializes in produce from Asia including black cabbage, baby bok choy, napa cabbage, papaya and durian, GrubMarket said in a press release at the time. It also imports yogurt, tofu and other products from Spain, Morocco, Thailand and other countries. Xu called the acquisition a way to reinforce GrubMArket’s presence in the Northeast.
One month earlier, GrubMarket announced the acquisition of Mendez International, a wholesale distributor of produce to greater New York City grocery stores and supermarkets. Mendez International supplies those retailers with avocados, limes, mangos and other produce from Costa Rica, Ecuador, the Dominican Republic and Jamaica.
Grubmarket made more than a dozen acquisitions in 2022, and more than 60 in the last four years, CNBC reported. It raised $499 million in funding since it was founded in 2014, according to Crunchbase.
Additions to GrubMarket’s portfolio of distributors also gain access to the firm’s SaaS platform, with online ordering features and shipping and logistics management technology.
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