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AI-powered food supply chain platform GrubMarket has completed the acquisition of Sustainable Produce Urban Delivery (SPUD), an established online grocery delivery business based in Vancouver, British Columbia.

The transaction expands GrubMarket’s direct-to-consumer e-commerce footprint across key metropolitan markets in Western Canada, including British Columbia and Alberta. The deal includes SPUD's online platform, supply chain network, and distribution infrastructure, while excluding the company's physical retail store banners.

Founded in 1997, SPUD operates a regional direct-to-consumer supply chain connecting residential customers with over 800 local farmers, ranchers, and artisanal food producers across Western Canada.

The acquisition incorporates SPUD’s primary logistics and distribution infrastructure into GrubMarket's network:

🚚 Distribution Network: Three distribution centres operating across Burnaby, Calgary, and Edmonton, representing more than 85,000 square feet of temperature-controlled warehousing.

🚛 Delivery Logistics: A dedicated fleet of refrigerated delivery vehicles serving residential routes across major urban corridors in Western Canada.

🌾 Local Sourcing Infrastructure: An established supplier network comprising over 800 regional agricultural producers, micro-processors, and food entrepreneurs.

As part of the transaction terms, SPUD's physical brick-and-mortar retail banners, Blush Lane Organic Market and Be Fresh Market, were excluded from the acquisition. These physical retail assets will remain under the ownership of Canadian investment firm Third Eye Capital (TEC).

Integration and Financing

Following the acquisition, GrubMarket plans to deploy its proprietary software suite across SPUD's operational network to streamline logistics and inventory management. SPUD will integrate several enterprise platforms:

• WholesaleWare: An enterprise resource planning (ERP) system providing inventory tracking, lot traceability, automated routing, and grower accounting.

• GrubAssist AI: An enterprise AI suite designed for workflow automation, demand forecasting, and operational analytics.

• Orders IO and GrubPay: Customised mobile ordering interfaces paired with digital payment processing software tailored for food supply chain logistics.

Concurrently with the transaction, institutional backer Third Eye Capital elected to participate in GrubMarket’s Series H preferred stock financing round, supporting the continued digital transformation of the company's supply chain technology.

Management Continuity

SPUD will continue operating under its existing leadership team to maintain operational continuity across customer service, vendor relationships, and local logistics.

Mike Xu, Chief Executive Officer of GrubMarket, noted that the addition of SPUD aligns with the company's ongoing strategy to scale its direct-to-consumer e-commerce footprint while embedding digital supply chain tools across regional food distribution systems.