Blab Tech
GrubMarket Acquires Vancouver-Based SPUD to Expand Canadian Fresh Food Delivery
GrubMarket, the San Francisco‑based online farmers‑market platform, announced on Tuesday that it has purchased Sustainable Produce Urban Delivery (SPUD) from private‑equity firm Third Eye Capital. The transaction value was not disclosed. SPUD’s brick‑and‑mortar banners, Blush Lane Organic Market and Be Fresh Market, remain under Third Eye ownership and will continue to operate independently.
SPUD, which delivers fresh groceries to households in British Columbia and Alberta, will be integrated into GrubMarket’s existing technology platform. The acquisition gives GrubMarket a well‑established brand and distribution network in two Canadian provinces, expanding its direct‑to‑consumer reach. As part of the deal, Third Eye Capital will participate in GrubMarket’s Series H financing round.
Founded in 1997 as Small Potatoes Urban Delivery, SPUD has operated online groceries out of three distribution centers in Calgary, Edmonton and Burnaby, covering a physical footprint of more than 85,000 square feet. The company partners with over 800 local farmers, producers and food entrepreneurs to source its products. According to GrubMarket, SPUD’s mission is “to build a more sustainable food system by connecting Western Canadian communities with high‑quality, responsibly‑sourced food.” SPUD’s CEO, Claude Church, said the acquisition would help the company amplify its impact and reach more households that share its values.
SPUD’s path to the deal began when the company filed for creditor protection in 2022. The court process led to Third Eye Capital, the debtor‑in‑possession lender, taking ownership of the brand. Third Eye relaunched the business in 2023 under the SPUD name. The new ownership structure positioned SPUD for acquisition by a larger player in the online grocery market.
GrubMarket’s Canadian expansion has previously included the 2021 purchase of Vancouver‑based e‑commerce startup Funtech. The new SPUD acquisition will be managed by the existing SPUD team while GrubMarket integrates its AI‑driven workflow and financial tools into the operation. The integration is expected to streamline order processing, inventory management and delivery logistics across the two provinces.
At present, SPUD’s retail banners remain separate from the acquisition, and Third Eye Capital continues to own and operate Blush Lane Organic Market and Be Fresh Market. GrubMarket’s focus is on the online grocery segment, and the company plans to roll out its platform across the newly acquired distribution centers over the coming months. No further details have been released regarding the timing of the integration or potential changes to SPUD’s customer interface.
The acquisition marks a significant step for GrubMarket’s strategy to consolidate the Canadian fresh‑food delivery market. By adding SPUD’s established network and farmer relationships, the company aims to strengthen its supply chain and expand its customer base in Western Canada. The deal also positions GrubMarket to leverage its AI and financial tools across a larger geographic footprint, potentially improving operational efficiency and customer experience.
The current status of the integration remains in early stages. GrubMarket has not announced a specific launch date for the combined platform, nor has it disclosed any regulatory approvals required for the transaction. The company’s next public update is expected in the upcoming quarterly earnings report, where it may outline progress on the integration and any additional funding needs.
SPUD, which delivers fresh groceries to households in British Columbia and Alberta, will be integrated into GrubMarket’s existing technology platform. The acquisition gives GrubMarket a well‑established brand and distribution network in two Canadian provinces, expanding its direct‑to‑consumer reach. As part of the deal, Third Eye Capital will participate in GrubMarket’s Series H financing round.
Founded in 1997 as Small Potatoes Urban Delivery, SPUD has operated online groceries out of three distribution centers in Calgary, Edmonton and Burnaby, covering a physical footprint of more than 85,000 square feet. The company partners with over 800 local farmers, producers and food entrepreneurs to source its products. According to GrubMarket, SPUD’s mission is “to build a more sustainable food system by connecting Western Canadian communities with high‑quality, responsibly‑sourced food.” SPUD’s CEO, Claude Church, said the acquisition would help the company amplify its impact and reach more households that share its values.
SPUD’s path to the deal began when the company filed for creditor protection in 2022. The court process led to Third Eye Capital, the debtor‑in‑possession lender, taking ownership of the brand. Third Eye relaunched the business in 2023 under the SPUD name. The new ownership structure positioned SPUD for acquisition by a larger player in the online grocery market.
GrubMarket’s Canadian expansion has previously included the 2021 purchase of Vancouver‑based e‑commerce startup Funtech. The new SPUD acquisition will be managed by the existing SPUD team while GrubMarket integrates its AI‑driven workflow and financial tools into the operation. The integration is expected to streamline order processing, inventory management and delivery logistics across the two provinces.
At present, SPUD’s retail banners remain separate from the acquisition, and Third Eye Capital continues to own and operate Blush Lane Organic Market and Be Fresh Market. GrubMarket’s focus is on the online grocery segment, and the company plans to roll out its platform across the newly acquired distribution centers over the coming months. No further details have been released regarding the timing of the integration or potential changes to SPUD’s customer interface.
The acquisition marks a significant step for GrubMarket’s strategy to consolidate the Canadian fresh‑food delivery market. By adding SPUD’s established network and farmer relationships, the company aims to strengthen its supply chain and expand its customer base in Western Canada. The deal also positions GrubMarket to leverage its AI and financial tools across a larger geographic footprint, potentially improving operational efficiency and customer experience.
The current status of the integration remains in early stages. GrubMarket has not announced a specific launch date for the combined platform, nor has it disclosed any regulatory approvals required for the transaction. The company’s next public update is expected in the upcoming quarterly earnings report, where it may outline progress on the integration and any additional funding needs.
