Misfits Market Acquires Imperfect Foods
Two online grocers with private label collections are joining forces.
Online grocery platform Misfits Market has announced the acquisition of Imperfect Foods, a grocer that sells products made from ingredients that would otherwise be wasted. The acquisition puts the combined business on track to cross $1 billion in sales and reach profitability by early 2024.
The deal puts two like-minded companies together to tackle the problem of food waste. Grocery stores waste about 30% of all food inventory, accounting for 16 billion pounds annually, according to waste collection and tracking service Recycle Track Systems.
“Misfits Market and Imperfect Foods have already proven a better model exists—together, both brands will step forward to scale this new approach and deliver a better food system for farmers, suppliers, and customers in every community across the country,” said Misfits Market.
While the brands will continue separate operations in the short term, Misfits Market founder and CEO Abhi Ramesh will serve as CEO of the combined company, with executives from Imperfect Foods joining the Misfits Market leadership team.
“We have a tremendous opportunity to advance the shared mission of both brands, which is nothing less than a fundamental re-imagining of both the grocery category and the broken U.S. food system,” said Ramesh. “The strengths of the Imperfect Foods organization, from its in-house delivery fleet and robust private label program to its sustainability commitments and innovation, add immediate scale and depth to what we’re building at Misfits Market.”
Misfits Market released a video in which Ramesh details the acquisition.
“Scale matters in grocery, and this combination makes us a truly meaningful disruptor in the space,” stated Imperfect Foods CEO Dan Park. “Both organizations have made significant progress as individual brands—together we have already rescued nearly 500 million of pounds of food that may otherwise have gone to waste, and driven innovation in a category propped up by antiquated technology and thinking. The combined experience and expertise of this newly merged team will exponentially increase our ability to take on established players in the traditional grocery space."
Founded in 2018, Misfits Market delivers organic produce, high-quality meats and seafood, plant-based proteins, dairy, bakery, wine and other grocery items to nearly every zip code in 48 states.
Founded in 2015, Imperfect Foods works directly with farmers and producers to rescue, redistribute, and develop goods across multiple grocery categories, including its own private label offerings.