Dive Brief:

• GrubMarket acquired Doorganics, a farm-to-table online delivery service in Michigan, according to a press release. The services specialize in local and organic fruits, vegetables, dairy, pastured proteins, breads and other grocery items.
• With the acquisition, Doorganics will expand its offerings throughout more Midwest cities from its Grand Rapids headquarters.
• GrubMarket will provide Doorganics with technological, e-commerce and operational support to assist the expansion. Doorganics' current team will continue to lead the company.

Dive Insight:

GrubMarket has deployed a rapid expansion plan powered by acquisitions to fuel its ambitions of bringing farmers markets online. It aims to meet demand for local and organic products by amassing the economies of scale through acquiring suppliers in strategic locations near urban centers.

A unique attribute of GrubMarket is that it is largely client agnostic. It serves consumers and businesses, and the model appears to be working. GrubMarket is the largest mushroom supplier in Northern California, according to TechCrunch, and Whole Foods is one of its largest retail customers in that state. This strategy may prove useful at staving off competition from other online retailers like San Francisco-based Good Eggs, Los Angeles-based Milk and Eggs and Bay Area-based Farmstead. 

The ability to satisfy its appetite for acquisitions is due in part to a $28 million venture capital round in April, TechCrunch reports, including snagging the first investment from Kraft Heinz's corporate venture capital fund. GrubMarket has snapped up a number of California companies so far this year, including produce and specialty food supplier VIP Wholesale, produce wholesaler Golden Greek Fresh, produce sourcing company Happy Farm Produce and distributors Chasin Foods and So Cal Farm Networks.

The heavy focus on Southern California appears to be shifting, however. GrubMarket recently claimed territory in New York and New Jersey to grow its East Coast operations, and will continue to encounter competition from the likes of FreshDirect, Peapod, Amazon and services promising to bring the farmers market to buyers' doorsteps.