Albertsons, Greycroft Launch Grocery Store Innovation Fund
The fund will invest $50 million in emerging companies and technologies in the grocery sector.
NEW YORK and BOISE–Albertsons Cos. and venture capital firm Greycroft are launching a $50 million fund to invest in and help grow emerging companies and technologies in the grocery sector.
For Albertsons, the fund is part of a larger tech strategy that is centered around e-commerce and home delivery. “Albertsons Cos. is committed to meeting customers wherever and however they like to shop, and part of that is being at the forefront of the tremendous innovation our industry has seen over the last five years,” said Shane Sampson, Chief Marketing & Merchandising Officer, in a prepared statement.
For example, last year Albertsons Cos. acquired meal-kit company Plated, a significant strategic play for the grocery sector that was likened in the media to Amazon’s acquisition of Whole Foods.
The grocery store sector is ripe for such innovation. Since 2013, investment in the food and beverage sector has more than tripled, often led by startups and incubators, according to Coresight Research. Also, consumer expectations are driving these developments. This year annual online retail sales of food and beverages in the US are expected to exceed $20 billion, Coresight says.
A Wider Range of Services
Greycroft envisions a more expansive outreach from its investment in the fund, according to Ian Sigalow, co-founder and partner of the venture firm. “This partnership with Albertsons Cos. will enable our companies to tap into their 34 million weekly customers, across a wide range of industries including consumer products, healthcare, wellness, pharmaceuticals, and grocery,” he said. “We believe that consumers should be able to get access to these high quality products and services whenever they want, wherever they want, and that requires a coast to coast footprint.”
Albertsons Cos. owns about 2,300 supermarkets and 1,760 pharmacies across 38 states and the District of Columbia under 20 different store brands including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Sav-On, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Amigos, Haggen and United Express.