GrubMarket has acquired Sustainable Produce Urban Delivery, commonly known as SPUD, an online grocery company serving customers across British Columbia and Alberta. Financial terms of the transaction were not disclosed.
The acquisition expands GrubMarket’s direct-to-consumer e-commerce presence in Canada and adds an established Western Canadian grocery delivery brand. SPUD will continue to be managed by its existing leadership team.
Founded in Vancouver in 1997 as Small Potatoes Urban Delivery, SPUD connects consumers with food sourced from local farmers, ranchers, fishers and artisan producers. Its product selection includes fresh produce, dairy, meat, seafood, pantry items, prepared meals and specialty goods.
SPUD operates three distribution centers totaling more than 85,000 square feet in Burnaby, Calgary and Edmonton. The company also maintains a fleet of refrigerated delivery vehicles designed to preserve product quality through delivery to customers’ homes.
The business works with more than 800 local farmers, producers and food entrepreneurs. This supplier network enables SPUD to offer locally sourced products while supporting regional food production and reducing the number of intermediaries involved in the supply chain.
SPUD has also incorporated sustainability practices into its operations, including the use of reusable delivery bins. Its sourcing team evaluates products based on quality and environmental considerations.
SPUD was previously backed by Third Eye Capital, a Canadian provider of flexible financing. The company’s brick-and-mortar Blush Lane Organic Market and Be Fresh Market businesses were not included in the transaction and will remain under separate Third Eye Capital-backed ownership.
Third Eye Capital also participated in GrubMarket’s Series H preferred stock financing. Its investment will support GrubMarket’s continued development of AI-powered products for improving food distribution efficiency and reducing waste.
Following the acquisition, SPUD will gain access to GrubMarket’s purchasing scale, operating resources and technology platform. GrubMarket expects these capabilities to help SPUD reach additional households while expanding support for local producers.
SPUD will also be able to use GrubMarket’s proprietary software products. These include WholesaleWare, an enterprise resource planning platform for inventory, accounting, sales, traceability and logistics.
Other products include GrubAssist AI, a suite of agentic AI tools for analysis and workflow automation; Orders IO, a branded online and mobile ordering platform; and GrubPay, a digital payments product designed for food supply chain businesses.
The transaction supports GrubMarket’s strategy of expanding its business-to-consumer services while increasing its presence in Canada. The company already operates throughout the United States and maintains operations across several international markets.
GrubMarket plans to combine its food supply chain network and technology with SPUD’s customer relationships, local sourcing model and established Western Canadian operations. SPUD’s customers, employees and suppliers are expected to experience operational continuity under the existing management team.
KEY QUOTES:
“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.”
Claude Church, CEO of SPUD
“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.”
Mike Xu, CEO of GrubMarket
