GrubMarket Acquires Mendez International in New York

GrubMarket continues to increase its ability to deliver fresh produce with its acquisition of the tropical fruit import company Mendez International. 

GrubMarket, a food tech, e-commerce, and farm-to-table food delivery services company based in San Francisco, California, acquired Mendez International, a fresh produce importer and distributor based in New York, on September 12, 2023. GrubMarket made the acquisition to secure its sourcing capability for imported fresh produce to serve its customers better. GrubMarket also acquired two similar produce companies in 2023.

Transaction Summary

Our Take on the Acquisition

GrubMarket (acquirer) acquired Mendez International (target) to secure and integrate its supply of high-margin and high-demand fresh imported produce. Mendez International imports tropical fruits with a short shelf life, like avocados, mangos, limes, and plantains. GrubMarket has made similar acquisitions in 2023, including London Fruit and Custom Produce Sales and has been on an acquisition spree since 2022 as it grows. In the past two years, the company has acquired five produce companies and five IT companies. Mendez International will use GrubMarket’s software for its operations and to meet local consumer demands and requirements.

The Facts of the Acquisition

  • Target: Founded in 1988 by long-time owner Felipe Mendez’s father, who came to America from Cuba, Mendez International is a family-owned fresh produce importer and distributor based in New York. The company imports mangos, avocados, limes, and other tropical fruits from Costa Rica, Ecuador, the Dominican Republic, and Jamaica.
  • Acquirer: GrubMarket is a San Francisco-headquartered food technology company founded in 2014 that operates in the food supply chain to service end consumers and business customers. It provides related software-as-a-service solutions (SAAS) to enable F&B businesses to start selling their products online. GrubMarket operates in all 50 U.S. States, Canada, Latin America, Egypt, India, Spain, and South Africa, with plans to expand nationally and to other parts of the world. GrubMarket also delivers high-quality groceries to the local Los Angeles and San Francisco areas at prices it claims are 50% less than other grocers.

The Transaction

Date:September 12, 2023
Purpose: To enable GrubMarket to execute its plans to grow in the U.S. by expanding along the U.S. East Coast. The acquisition will also fortify its global produce sourcing capabilities across Central America, which will solidify its position in the global food supply chain industry.
Acquirer’s Statement:Mike Xu, CEO of GrubMarket – “Mendez International has developed a sterling reputation as a leader amongst produce distributors in the Tri-State area. Felipe [Mendez, owner of Mendez International] and his team have done an incredible job significantly growing both sales and profits over the past few years. We deeply respect their business savvy grounded in strong family values, which have allowed them to build strong customer relationships and provide high-quality foods at competitive prices for over three decades at the renowned Hunts Point Produce Market. Their determination and heart reflect the same fundamental values that GrubMarket has worked hard to cultivate over the years. This acquisition enables GrubMarket to further strengthen our presence along the East Coast, particularly in New York, and fortifies our global sourcing capabilities across Central America. We are so excited to welcome the Mendez International team to the GrubMarket family.”

Target/Seller: Mendez International

Company Information

Target:Mendez International
Industry: Fresh Produce Importer and Distributor
Type:Private, Family Owned
Employees:Up to 25 (Unconfirmed source: ZoomInfo)
Locations:Head Office and Warehouse: 151 Hunts Point Term Mkt # A, New York, United States

Product Information 

Market Reach:United States

Financial Information 

Revenue:Up to USD $5.0 million (Unconfirmed source: ZoomInfo)
Revenue per Employee:USD $200,000 (i.e., USD $5 million / 25 employees = USD $200,000 – estimated based on the self-published number of employees and revenue from ZoomInfo)

Did You Know?

According to Grand View Research, the U.S. fruit and vegetable market size was valued at USD $92.88 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2023 to 2030. The growing popularity of online grocery shopping and delivery services is a strong driver of product purchases. Meal kit delivery is another addition to grocery delivery that is gaining popularity among health-conscious consumers, as they provide many combinations of fruits and vegetables based on the personalized requirements of consumers.

In addition, vegan food trends are expected to provide several growth opportunities to the U.S. fruits and vegetables industry. Plant-based products are gaining traction in the market, and competitors are working to meet the demand of customers who now prefer plant-based food items more often. Veganism could be the most significant opportunity for players in the market.

Target/Seller Overview: Mendez International

Mendez International was founded in 1988 and is operated by two generations of an immigrant family in New York. It is an importer and distributor of high-quality tropical fruits, including plantains, bananas, avocados, and limes sourced from an extensive network of producers across Costa Rica, Ecuador, the Dominican Republic, and Jamaica. The business operates six units out of Hunts Point Produce Market, one of the largest wholesale produce markets in the United States and the center of New York City’s fresh food trade.

Buyer/Acquirer: GrubMarket

Company Information

Industry: Food Service – Distribution and IT-Enabled Services
Type:Private with eight rounds of venture capital funding
Employees:133 (Self-published on LinkedIn)
Locations:Head Office: 1925 Jerrold Ave, San Francisco, United States
Total Funding:USD $499.1 million
Investor:Apeira Capital: A creative investment and advisory firm focused on disruptive distribution technology based in New York, United States.
Christian Edler: An angel investor investing in early stage ventures.
Disruptive Ventures: An investment company investing in private companies. The company is headquartered in New York.
Grosvenor Food and AgTech: An international investor in food and agriculture businesses working out of London, United Kingdom.
Liberty Street Funds: An investment management fund based in New York, United States
Portfolia: An investment fund backing innovative companies for returns and impact in California, United States.
Squarepoint Capital: A leading global investment management firm that develops quantitative investment strategies based in New York, United States.
Tiger Global Management: An investment firm headquartered in New York, United States.
Walleye Capital: An investment strategies, hedge funds, risk management, and wealth management advisory services provider in Minnesota, United States.

Product Information 

Services:For End Consumers:E-Commerce – Offers pick-up or delivery services to customers in the Los Angeles and San Francisco Bay areas of food from local restaurants, farms, fisheries, and commercial and certified home kitchens. Consumers can order from the GrubMarket website or by using the app. Currently, the regular delivery range for Bay Area customers extends to six counties, including Santa Clara, San Mateo, Alameda, San Francisco, Contra Costa, and Marin Counties.

GrubBox – A subscription service that delivers a boxed selection of vegetables, fruits, meat, and dairy to the San Francisco and Los Angeles areas.
FarmBox Game – A free iOS game where players can manage their own virtual farm and earn points. Players can use their points to purchase virtual goods or tools within the game or at to buy real foods delivered.

For Business Owners:Farmigo – A cloud-based software and smartphone app that manages community-supported agriculture, where customers invest in a farm in exchange for a portion of the harvest, and sales and subscriptions for farmers and wholesalers.

GrubPay – An app for taking customer payments.
Orders IO – A tablet and smartphone e-commerce app that lets customers place orders.
WholesaleWare – A cloud-based enterprise resource planning (ERP) software that handles inventory, warehouse management, accounting, and HR management for food wholesalers, distributors, and shippers.
Market Reach:North America: United States, Canada, Mexico
South America: Argentina, Chile, Colombia
Africa: South Africa, Egypt
South Asia: India
Europe: Spain

Financial Information 

Revenue:USD $32 million (Unconfirmed source: Zippia)
Revenue per Employee:USD $240,602 (i.e., USD $32 million / 133 employees = USD $240,602 – estimated based on the self-published number of employees and the revenue from Zippia)

Buyer/Acquirer Overview: GrubMarket

GrubMarket is a food technology company founded in 2014 that operates in the food supply chain. For business customers, it offers various software-as-a-service solutions (SAAS), including the innovative, proprietary WholesaleWare software suite, which gives food industry wholesalers and distributors seamless financial management, sales and online ordering features, precise inventory management, lot traceability, grower accounting, logistics, and automated routing, as well as Orders IO, GrubMarket’s custom-branded, mobile eCommerce solution. End consumers in the Los Angeles and San Francisco Bay areas can shop for local produce, pantry staples, and groceries on the GrubMarket website or download the GrubMarket app to shop for farm-fresh food on the go and receive special promotions sent to app users only.

GrubMarket supports the food supply chain by connecting producers with consumers.

Previous Acquisitions by GrubMarket

  • London Fruit (2023) – A wholesale importer of fresh fruits and vegetables from Latin and South America headquartered in Texas.
  • Custom Produce Sales (2023) – A wholesale distributor of fresh fruits and vegetables based in California, United States.
  • Fresh Software Solutions (2022) – A software solutions provider for distributors and food suppliers headquartered in Illinois, United States.
  • Rainfield Marketing Group (2022) – A grower and shipper of vegetables based in British Columbia, Canada.
  • Granite State Software (2022) – A developer of software programs for produce wholesalers working out of Kansas, United States.
  • Frantoni (2022) – A software products provider based in New York.
  • IOT Pay (2022) – A payment solution provider for in-store and online payment in British Columbia, Canada.
  • Quality Fruit & Vegetable Company (2022) – A distributor of fresh produce based in West Texas, United States.
  • QBIX Analytics (2022) – An IT firm that helps companies use their data better with headquarters in California, United States.
  • Vega Produce (2022) – A company specializing in importing, packing, and distributing specialty produce based in New York, United States.


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