GrubMarket acquires California-based foodservice distributor

GrubMarket, a global private food e-commerce company, has acquired California-based foodservice distributor Bay Cities Produce.

Bay Cities Produce, founded in 1947, has provided wholesale distribution of fresh-cut produce and  prepared fruits and vegetables to restaurants, schools and universities, government agencies and retailers across Northern California, according to a news release.

In 2006, the company expanded into a 55,000 square foot state-of-the-art production facility.

GrubMarket owns Daylight Foods, one of the largest foodservice companies in California.

“When the Bay Cities Produce opportunity was first presented to us, we knew we had to act quickly to transition the business effectively,” Keith Brewer, GrubMarket chief operating officer and vice president of operations, said in the release. “We worked around the clock, hiring over 120 Bay Cities employees into the Daylight family. Our sales team contacted over 100 customers to assure them that there would be no disruption to their service, and I’m happy to report that we successfully retained the vast majority of Bay Cities’ business.

“For us, this acquisition is about more than just business growth; it’s about community, continuity, and keeping food moving efficiently through the supply chain.”

As part of GrubMarket, Bay Cities Produce will have access to GrubMarket’s AI software solutions, including WholesaleWare, a software-as-a-service (SaaS) ERP platform that provides financial and inventory management services to food industry wholesalers, distributors and shippers.

“Bay Cities Produce has been a well-respected name in the foodservice industry for decades, and we are honored to welcome its employees and customers into the GrubMarket family,” GrubMarket CEO Mike Xu said. “Bay Cities Produce and our company, Daylight Foods, have tremendous synergies, and this acquisition both complements and strengthens Daylight Foods’ position as a leader in the market.”