Door to Door Organics Gets More Green
While e-commerce has been slow to gain traction in the grocery category, at least some investors believe in Door to Door Organics, the Boulder, CO-based e-grocer.
Last week, Door to Door Organics received a $2 million Series A round investment from Greenmont Capital, a growth stage investment fund. Now in its seventh year, Door to Door Organics claims to offer one of the largest grocery delivery networks of any e-grocer in the U.S., with operations in Colorado, Illinois, Missouri, Michigan and Pennsylvania.
The company started out sourcing and delivering organic produce, and has since added products such as locally sourced farm-fresh eggs, natural gourmet cheese, locally raised meats, artisan breads and value-priced pantry staples. Produce is USDA Certified Organic and sourced locally whenever possible. The company partners with multiple farms. Details of each local farm are listed on local websites for each city.
Customers place and customize their orders online each week. They get to choose the size of the box and its contents. Door to Door Organics’ "The Door To Door Kitchen" also offers recipe suggestions based on the orders and allows members to shop for any additional items they might need. Members can also "Shop by Recipe," creating their order based on the week’s planned meals.
"We built this business by delivering fresh, high-quality food that has a positive impact on people’s health, the environment and our communities," said Chad Arnold, president and CEO of Door to Door Organics, in a statement.
"We’re excited to partner with Door to Door Organics and bring our experience from retail grocery into the world of e-grocery," said Greenmont Capital Partner David Haynes. "The consumer dynamic is shifting rapidly, and Door to Door Organics is building a compelling solution for the informed, health-conscious consumer who wants to be inspired in the kitchen."
Door to Door Organics appears to be the largest organic e-grocer in the country, although it faces competition from Whole Foods and some local organic stores offering delivery.
- Door to Door Organics Receives $2m Series A from Greenmont – Door to Door Organics
- Door to Door Organics – Door to Door Organics
- Door to Door Organics Service Overview – Door to Door Organics
- Door to Door Organics delivers farm-fresh food to (you guessed it) your door – Venture Beat
- Door-to-Door Organics: The Concept, Service Is in Its Name – NBC Chicago
What do you think of the growth potential for Door to Door Organics and other organic e-grocers? Do organic e-grocers face fewer hurdles than traditional grocers in e-commerce?
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6 Comments on "Door to Door Organics Gets More Green"
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As long as shopppers are willing to pay a lot more for a perceived benefit, the higher cost of food inherent in door-to-door will be much less of a barrier for this type of business.
It’s all about the economics. Can they offset the expense of delivery?
They will definately ride the recent consumer wave around organic foods. I think the consumer will pay more not for the conveince per se, but for the premium of organics.
I definitely see more potential here than in the eGrocer category as a whole. Organic products can be a little to a lot (depending on the item and where you live) harder to find than mainstream grocery items. Plus, consumers of organic products tend to have a greater interest in the “story” behind the food they are buying (see the pilot episode of Portlandia for a lampoon of the extreme form of this tendency). Put these two factors together and you have an opportunity for organic eGrocers to add value through curation. This is added value that a segment of consumers will pay for and help cover the costs of a delivery business.
No fewer challenges in the organic business than in traditional food retailing. We all know too well the colossal failures of the past, when at one time those companies seemed unstoppable. Cost-effective order fulfillment is the Holy Grail here.
This is a limited, niche opportunity. Traditional competitors to this including whole foods and other organic retailers will step in and offer their foods online once the true strength of this segment is realized. This will probably occur in each locale, before it becomes regional or even national.