Goodfood (TSX:FOOD) is a leading online grocery company in Canada, delivering fresh meal solutions and grocery items that make it easy for members to enjoy delicious meals at home every day. Goodfood’s mission is to enable members to plan weekly meals and grocery shopping in minutes. Goodfood members get access to a unique selection of products online as well as exclusive pricing made possible by the company’s world-class direct-to-consumer fulfillment ecosystem that cuts out food waste and expensive retail overhead.
The company has three production facilities and administrative offices in Canada. Goodfood has nearly 290,000 active subscribers who have the ability to build a grocery basket by selecting from a variety of Goodfood-branded grocery items and meal solutions based on individual taste preferences and personal schedules. Each basket is delivered daily in some geographies or once a week. Prices are generally inclusive of delivery and Goodfood currently serves customers across all nine Canadian provinces.
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Brand recognition
Goodfood has developed an important emotional connection with the company’s customers, who associate the Goodfood brand with family-friendly values. Many of the company’s customers have shared the company’s culinary successes through social media, which has contributed to the optimization and the prevalence of the Goodfood brand. Goodfood continues to strive to increase awareness of the Goodfood brand and the company’s product offerings across Canada via targeted marketing campaigns and converting awareness into new subscriptions and revenues.
Flexible national footprint
The company has built a thorough and flexible production and fulfillment capacity through six existing centres across Canada and plans for an additional flagship centre in Toronto. This infrastructure gives the company 590,000 square feet of fulfilment capacity for all of Goodfood’s product lines.
Through investments in automation and operational flexibility, these facilities can absorb current demand and provide runway for future growth across all of the company’s product lines. The company’s investments in infrastructure in major Canadian cities enables Goodfood to offer same day or next day delivery.
Diversity of product offering
Goodfood offers subscribers a variety of products and offerings in order to provide a comprehensive grocery solution that is as complete as possible. All of the ingredients received by customers are sourced mainly from farms across Canada and, if such sourcing is not possible due to seasonal availability or lack of availability from the company’s local purveyors, Goodfood ensures that the customer receives ingredients with best quality-to-price ratio available on the market.
Further, when selecting products, the company prioritizes ingredients without additives or preservatives. This ensures that, whenever possible, Goodfood’s meat and fish come from eco-responsible sources.
Sustainability
Reducing food waste is an important part of the company’s mission. Meal kits cut down significantly on food waste because each ingredient is perfectly measured at peak freshness and pre-portioned. Goodfood aims to source products in a responsible way and has made significant strides in sourcing products locally and ethically. The company’s packaging and cardboard boxes is also entirely recyclable.
Overall, Goodfood appears to be a great company to hold over the long term.
