Thrive Market gains a 5-year distributor

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Thrive Market gains a 5-year distributor

By Louisa Hallett - 09/27/2018
Thrive Market partners with a new distributor to match its growing demand, after lowering the prices of its organic products.

One of the fastest growing online grocers in the U.S. is positioning itself to fulfill its value proposition with a new five year partnership.

The Naperville, Ill.-based grocery distributor will operate as the online grocer's strategic distribution partner of natural and organic products through 2023, during which it will provide category insights, supply chain expertise and access to its wide array of products.

"We believe this partnership enables us to fulfill our value proposition and will better serve our end consumer. After extensive evaluation, it was clear that KeHE’s collaborative approach and focus on execution within the supply chain will allow us to deliver against our mission and vision," said John Winkels, Senior Vice President of Supply Chain at Thrive Market.

Thrive is known for offering a carefully curated selection to online members, which helps shoppers find every category of food, including highly niche categories such as products from woman-owned companies and carbon-neutral goods.

Earlier this month, Thrive Market began an initiative to better offer customers organic products that they want at prices "well below" those of its competitors. For the initiative, the grocer partnered with RangeMe, which supplies a platform that streamlines new product discovery for retailers and suppliers.

Los Angeles-based Thrive Market's membership-based platform offers access to natural snacks, supplements, home, beauty and baby products at 30 to 50 percent of the cost at traditional retailers, all for an annual fee of $60. Each paid membership on the site also sponsors a free membership for a low-income family.

Thrive Market launched in 2014 and offers healthy foods and natural products at what it calls wholesale prices, has expanded its assortment to include meat and seafood.

KeHE was  founded in 1953 and converted into an employee-owned company in 2001. The company currently has 5,500 employee-owners and a vast 15 centers within its distribution network across the U.S. and Canada.