A successful and innovative partnership has sprouted in the grocery sector. Sprouts Farmers Market entered an alliance with foodtech provider Pod Foods in late Q2 2022, and the two are now expanding their combined reach. Pod Foods' health-forward brands will now be available across all Sprouts stores, building on the original 130-store network they originally piloted.
"With Sprouts, we've quickly validated why there is a need for agile distribution and an enhanced marketplace of options in today's volatile landscape," said Larissa Russell, Co-Founder and Chief Executive Officer of Pod Foods. "Expanding our reach will help the brands we work with scale, while Sprouts reaps the benefits of being able to offer a totally unique and shifting list of emerging brands to their consumers."
Pod Foods provides retailers with the ability to become more agile in the face of shortages or slowdowns, giving their supply chain more elasticity to keep revenues high. According to a press release, the investments in logistics capacity by Pod Foods makes national distribution possible for even the most niche of brands.
Pod Foods has also opened three new dedicated warehouses to service the demand coming from Sprouts. The retailer will now have immediate access to brands across the country, allowing it to fill its shelves with the hottest emerging products. On the brand side, Pod Foods customers now have options outside of traditional distribution networks to make it into national retailers.
"Scaling up to a national level can seem daunting, but we see it as an incredible opportunity. Brands who might have plateaued in terms of growth due to limited order sizes now may start to see their first wholesale orders coming in from across the country," said Fiona Lee, Co-Founder and Chief Product Officer at Pod Foods. "By handling the challenges that can come with ramping up distribution across an entire country, Sprouts has peace of mind that orders will arrive promptly and brands are able to keep their eye on continuing to innovate the next best product."
Pod Foods brands are currently available in Sprouts stores across 23 states, from the East to West Coasts.
Cheers to this exciting partnership!