Private eCommerce food company GrubMarket has announced the acquisition of Bay Cities Produce, a food service distributor located in San Leandro, California. The acquisition seeks to strengthen the firm’s position in the food service sector. 

Bay Cities Produce specializes in fresh-cut produce and prepared fruits and vegetables. It provides wholesale distribution services to restaurants, schools, universities, government agencies, and retailers across Northern California.

This acquisition brings significant operational synergies between Bay Cities Produce and GrubMarket’s Daylight Foods, one of the largest food service companies in California. As a result, GrubMarket retained the majority of Bay Cities’ customers, ensuring there were no disruptions during Thanksgiving deliveries, one of the busiest periods of the year. Between November and the end of 2024, the team shipped 170,000 cases of products to customers.

“We worked tirelessly to hire over 120 Bay Cities employees and contacted over 100 customers to reassure them of no service disruption. We're pleased that we retained the vast majority of Bay Cities' business,” said Daylight Foods COO and GrubMarket Operations VP Keith Brewer. “This acquisition is about more than growth; it's about community, continuity, and keeping food moving through the supply chain efficiently.”

GrubMarket’s CEO, Mike Xu, added, “Bay Cities Produce has built a solid reputation in the food service industry over many decades, and we are excited to welcome their employees and customers to the GrubMarket family. This acquisition enhances Daylight Foods’ leadership in the market and aligns with our mission to modernize the food supply chain. We’re committed to continuing Bay Cities’ legacy of service and quality, introducing them to GrubMarket’s cutting-edge technology solutions like GrubAssist AI, WholesaleWare ERP, Orders IO, and GrubPay.”

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