Photo: Thrive Market
Thrive Market wants to change the world with new organic meat and seafood line
Thrive Market has been described as a cross between Costco and Whole Foods. The online grocer charges an annual membership fee of $59.95 and, in return, promises to sell a curated variety of natural and organic products at discounts up to 50 percent below traditional retail prices. The e-tailer also markets its shared values to subscribers by extending a free subscription to a family in need with each new sign-up.
While only selling shelf-stable groceries since its founding in 2014, this week the e-tailer announced it is branching out into perishables with the launch of Thrive Market Meat & Seafood, which sells 11 SKUs of boxed frozen beef, chicken, pork and seafood priced from $94.99 (22 servings of free-range organic chicken) to $119.99 (17 servings of wild and sustainable seafood).
Thrive has established its own supply line with small to medium-sized farmers and fisherman. As its members would expect, Thrive Market chose suppliers not only for their ability to meet quality requirements, but also for their commitment to animal welfare and sustainable environmental practices. According to a company press release, “Thrive sought out cattle raised on lush grass year-round, pigs allowed to forage naturally in pastures, chickens allowed to roam freely, and seafood sourced in a way that’s mindful of our oceans.”
On the new line, Thrive’s co-founder and chief strategy officer Gunnar Lovelace said, “Our hope is by sharing these offerings with our members we’ll not only deliver a truly differentiated product at a competitive price, we will also enable our producer partners to grow their operations, inspire others to transition away from unsustainable techniques and eventually change America’s food system for the better.”
At last year’s Shop.org conference, Mr. Lovelace said the company’s success is tied to its “hypercuration,” which has helped it become an “authentic, trusted source” for its customers. Thrive, he said, is “not trying to out Amazon, Amazon.”
Discussion Questions
DISCUSSION QUESTIONS: How likely is Thrive Market to find success with its new organic meat and seafood offerings? Do you think Thrive will need to offer more perishables to scale its business upward?
Poll
BrainTrust
Kevin Graff
President, Graff Retail
Brandon Rael
Strategy & Operations Transformation Leader
Subscription models are the rage in e-commerce, with numerous companies trying to establish a toehold with consumers. The question is whether consumers will accept large quantities of frozen meats and seafood and order frequently enough to warrant the subscription fee.
A few thoughts:
Subscription models are the rage these days and every retailer, service provider and now organic meat and seafood companies are looking to capitalize on this opportunity. But there may be a niche in which Thrive Market can thrive, as the organic meat and seafood market offerings are at premium price levels. Health consciousness aside, there is also a degree of price consciousness that we have to consider.
Thrive may have the magic sauce with their curated offerings and discounted pricing. However, with all subscription models, keeping everything fresh, new and interesting is the most significant challenge. Being prescriptive and ahead of the curve will be key for Thrive Market, as the experience may wear thin after a few months and the customer may choose other options.
Yes, I believe there’s a ceiling on Thrive Market’s business in absence of a long-term strategy that includes perishables.
Everything they’re doing (e.g. small/medium suppliers, ethical sourcing, etc.) is beyond on point with where the market is headed. However, there’s no ignoring that perishables – or put another way, “fresh” are a big deal for this consumer segment. Without a plan to expand in this direction, you’re stuck in a niche (though a reasonably large one) and missing out on a significant amount of spend over the long term.
That said, I don’t think the frozen boxes will be a home run. It’s a move in the right direction, though something about the messaging of frozen vs. organic/craft/locally sourced feels conflicting.
It seems like an obvious extension of the Thrive Market offering. The company has laid the groundwork with less sensitive products and now that it has the brand, customer base, logistics, etc. in place it’s widening the offering. It’s a good way of keeping them in the Thrive Market ecosystem rather than buying their perishables elsewhere and potentially take all their business there. I think as long as the price is right and customers have the freezer space to accommodate the goods then it’s worth a try.
It is great that Thrive has the high ideals of quality, sustainability and animal welfare at the heart of its operation. The fact that the produce is frozen makes their supply chain significantly easier provided they can manage and control the temperature and quality of the last mile delivering into the home. With meat and fish any loss (or rise) of temperature can be very dangerous for the end-consumer.
From a pure supply chain point of view they will maintain healthy sell-by restrictions that will enable them to handle the new lines pretty much as they do the dry grocery products, their only constraints will be the frozen capacity at their central warehouse and packing facility. The difficulty is getting people to work in sub-zero temperatures for any length of time and the accuracy of picking does deteriorate under these conditions.
Frozen food generally has a connotation of being of lower quality and hence expectations of lower prices. Thrive is trying to turn this perception on its head with better quality and certainly better animal welfare, both of which are normally the domain of the fresh produce buy-at-the-source/farm type operations. It may take some work to get consumers to buy this concept.
Popular idea … which of course means everyone and their brother is trying it. I wish them well, but I suspect that offering “50% below retail” may may be easier than making it happen; particularly when a well-funded competitor — or even several of them — offers 60% below.
I know storytelling and narrative are all the rage, but this quote doesn’t pass the BS meter: “Thrive sought out cattle raised on lush grass year-round, pigs allowed to forage naturally in pastures, chickens allowed to roam freely, and seafood sourced in a way that’s mindful of our oceans.” It sounds great and I wish it were true, but if it is too good to be true, it usually is. Maybe it will lure in the younger generations who haven’t been around the block enough yet.