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10/29/2021

1-800-FLOWERS.COM Acquires Seafood Company Vital Choice

1800-Flowers.com has acquired seafood company Vital Choice.
Vital Choice

The acquisition adds to 1800-Flowers.com’s growing assortment as the gift retailer expands its “better for you” food category. Vital Choice is a provider of wild-caught seafood and sustainably farmed shellfish, pastured proteins, organic foods and marine-source nutritional supplements. 

All told, the expansion adds more than 400 items to the category, including frozen, canned, and smoked wild fish and shellfish, organic grass-fed beef, pasture-raised pork, organic soups, organic fruits, seasonings, oils and broths, fish-based pet treats and omega-3 fatty acids.

The acquisition comes as 1800-Flowers.com is broadening its appeal to a diverse group of consumers seeking healthier foods. The company already owns several food and beverage brands, including Cheryl's Cookies, Harry & David, Shari's Berries, FruitBouquets.com, Moose Munch, The Popcorn Factory, Wolferman's Bakery, Stock Yards and Simply Chocolate. In fiscal year 2021, 1800-Flowers.com added 6.5 million new customers, bringing the company’s 12-month active customer file to approximately 14 million, according to its end-of-year earnings report.

“’Better for you’ products are contributing to the strong momentum we’ve been seeing in our gourmet foods business over the past year, and Vital Choice is a natural fit with our existing brands to help drive continued growth in this category,” Steve Lightman, group president of gourmet foods and gift baskets, said in a statement. “There is growing consumer interest in food that is healthy, natural and convenient, with newer, younger customers especially drawn to these products.”

Ferndale, Washington-based Vital Choice launched in 2001 and has since established long-term sourcing relationships with 60 well-managed fisheries.

1800-Flowers.com reported strong revenue in the first quarter of fiscal year 2022, with total revenues increasing 9%, to $309.4 million. However, the company reported a net loss of $13.2 million for the quarter, as gross profit margin declined amid rising operational expenses.