Imperfect Foods poised to grow private label
Over the last year, Imperfect Foods, the company that arrived as a delivery service for misshapen fruits and vegetables at a value, has been working to transition from a regional produce-focused delivery service to a national full-service grocer, including the rollout of private label items.
Furthering this goal, Imperfect Foods announced it received a commitment of $95 million in growth investment. A round of financing will be led by Insight Partners and Norwest Venture Partners. Imperfect Foods said the investment will help it double its capacity and product assortment in its existing facilities, accelerate its “highly successful private label program,” improve the shopping experience, and support farmers and partners at the core of its business.
The company has a current subscriber base of 350,000 customers and said it reported triple-digit growth in 2020 verus the year prior and generated a revenue run rate in excess of $500 million.
This week, Imperfect Foods launched its first non-food and beverage private label items with a rose oil facial oil, avocado honey body butter and a three-in-one shampoo product.
The health and beauty items join a roster of pantry items such as cooking oils, quinoa and grains, nuts, nut butters, and more.
"This planned funding underscores the solid infrastructure, supply and customer experience upon which we've built this company," said Imperfect Foods CEO Philip Behn. "2020 proved there is a real and growing demand for the marriage of sustainability and convenience in retail food. As the leading direct-to-consumer online grocer with a coast-to-coast footprint and our own last-mile delivery fleet, we plan to continue improving the customer experience by doubling down on technology and building the 'perfect imperfect assortment' for our customers."
Imperfect Foods was founded in 2015 with a goal of eliminating the 40% of unspoiled food that’s thrown away in the United States each year, operating as a deliverer of surplus produce that was deemed too ugly to sell in stores.
After four years of averaging triple-digit growth, Imperfect Foods expanded into grocery staples in 2019 to include shelf-stable goods, dairy, meat and seafood.