>> WELCOME BACK TO CHEDDAR
NEWS, EVERYONE WILL BE IN A
REBEL IN ANY INDUSTRY CAN BE
TOUGH BUT ONE COMPANY IS
SHAKING THINGS UP IN THE
GROCERY DELIVERY SPACE AND ITS
SHOWING AT A PACE TO GO AGAINST
THE GRAIN MISFITS MARKET IS A
GROCERY DELIVERY SERVICE
DEDICATED TO ENDING FOOD WASTE
AND LOWERING YOUR WEEKLY
GROCERY BILL BY SELLING SURPLUS
GROCERIES
OR PRODUCE. THE LOOKS OF IT
WANTING BUT IS STILL OK, IT'S
EASY IT'S JUST NOT THE
PRETTIEST PRODUCE WILL SAY IT
THAT WAY AND NOW THE COMPANY IS
GOING TO THE NEXT LEVEL AFTER
225 MILLION DOLLARS SERIES C
ROUND LED BY SOFTBANK VISION
FUND 2. JOINING ME NOW IS AT
THE RIM EACH AS CEO AND FOUNDER
OF MISFITS MARKET ABBY THANK
YOU SO MUCH AFTER COMING ON THE
SHOW CONGRATULATIONS ON THE
ROUND. WHAT ARE YOU GOING TO DO
WITH THIS NEW FUNDING.
>> AND THANKS FOR HAVING ME AT
A VERY EXCITED AND YES, SO
WE'RE VERY EXCITED TO ANNOUNCE
THIS ROUND WE CLOSE THE SERIES
SEE ACTUALLY BACK IN FEBRUARY
THIS IS AN EXTENSION THAT IT'S
OUR SERIES C ONE
AND WROTE A FEW THINGS YOU KNOW
FIRST AND FOREMOST THIS IS TO
REALLY STARTED BAKKER
NATIONAL EXPANSION. WE'RE
CURRENTLY SERVING 43 STATES
ACROSS THE COUNTRY ARE PLANNING
TO BE IN ALL 48 LOWER STATES BY
THE END OF THIS YEAR. AND WE'RE
ALSO SUBSTANTIALLY
EXPANDING OUR OR A CATEGORY IN
A CERTAIN SELECTION SO THAT WE
START WITH PRODUCE BUT THE WITH
THE UGLINESS THAT PRODUCE
YOU'RE
JUST DESCRIBING. WE LAUNCHED A
TON OF NEW GROCERY ITEMS AS
WELL OVER THE PAST YEAR.
WE
RECENTLY LAUNCHED PROTEINS THE
AISLE AS WELL AS YOU CAN BUY
MEAT SEAFOOD PLANT PROTEINS IN
OUR PLATFORM AND A PLAN OVER
THE NEXT 8 TO 12 MONTHS
THIS LAUNCH EVERY EVERY AISLE,
YOU FIND A PHYSICAL GROCERY
STORE AND THE PLAN IS TO BE
BEAUTIFUL. ALL ONLINE GROCERY
STORE THAT DOESN'T EXIST TODAY.
>> AND MANY AMERICANS HAVE SEEN
THEIR GROCERY BILLS RISE IN THE
WAKE OF THIS PANDEMIC OVER THE
PAST
18 MONTHS TALK TO ME ABOUT YOUR
PRICE POINTS AND HOW THEY
DIFFER FROM WHAT YOU CITE MIGHT
FIND IN PRETTY PRODUCE AT THE
SUPERMARKET.
>> YES, SO THAT IS ONE OF THE
IT'S A QUALITY IS AND THE
FINDINGS ARE THE ASPECTS OF OUR
PLATFORM. OUR GROCERY PRICES
ARE 20 TO 40% CHEAPER,
IN SRP THAN BRICK AND MORTAR
RETAIL PRICES AND THAT WILL
REMAIN THAT WAY SO DESPITE ALL
THE INFLATIONARY PRESSURE THAT
EXISTS ON FREIGHT COSTS LABOR
COSTS APPLY CAUSE. WE
ANTICIPATE THE OVER ALL YOU
KNOW OVERALL MARKET TO RISE SO
PRICE
IN GENERAL GO UP, BUT WE WILL
STILL MAINTAIN AT THAT
AGGRESSIVE 20 TO 40% DISCOUNT
ON ALL OVER SHE ITEMS THE
REASON WE CAN
DO THAT IS BECAUSE WE HAVE
BUILT AND THEIR UNIQUE FOOD
VALUE CHAIN WE BUILT IT FROM
SCRATCH. WE'RE NOT WORKING WITH
LARGE DISTRIBUTORS WE WORK
DIRECTLY UPSTREAM WITH THESE
FARMS WITH THESE MANUFACTURERS
WITH THESE MEANS EVEN PRODUCERS
AND WE'RE BUYING STUFF THAT
TRADITIONAL RETAILERS CAN BUY
WANT MY FOR A VARIETY OF
REASONS AND THAT'S REALLY
WHAT'S DRIVING THAT VALUE AND
THAT'S EVENING LONG TERM.
>> NOW ARE YOU EXPERIENCING
YOUR CUSTOMERS EXPERIENCING
ANY DELAY BE IN TERMS OF
SHIPMENTS. I KNOW FOR OTHER
FOOD DELIVERY COMPANIES THAT
JUST HAS BEEN A REALITY OF THIS
PANDEMIC.
>> YEAH GREAT GREAT WERE
LARGELY THROUGH THE NOW DURING
DURING START OF THE PEAK
OF THAT PANDEMIC ABOUT A YEAR
AGO WE HAD OUR FAIR SHARE OF
CHALLENGES LIKE EVERYONE ELSE
THAT LABOR SHORTAGES, FRESH
ORANGES A CUSTOMER EXPERIENCE
EXPERIENCE BUT A FEW DELAYS
SINCE THEN WE HAVE AND LARGELY
THANKS TO THAT CAPITAL THAT WE
RAISE WE'VE BEEN ABLE
TO SCALE OUR FULFILLMENT
NETWORK WE MAY HAVE TO SCALE
OUR LABOR FORCE OUR TEAM GREW
FROM A 350 PEOPLE LAST YEAR AND
NORTH OF 1500 PEOPLE TODAY
AND THAT WILL PROBABLY GROW TO
NORTH OF 2000 BY THE END OF THE
SO BECAUSE OF THAT WE'VE BEEN
ABLE TO LARGELY SHIELD OUR
CUSTOMER FROM FROM THOSE
>> NOW IT COMES TO EXPANDING
THE BUSINESS AND HE LAID OUT A
ROAD
MAP HERE AND I'LL BE IN TERMS
OF DEMAND IS CONSISTENT DEMAND
TREND THAT YOU
HAVE SEEN AND NEW DEMAND THAT
YOU ANTICIPATE YOU WILL BE ABLE
TO CAPTURE WITH YOUR GROWTH
PLANS.
>> VERY MUCH SO SO WHEN YOU
LOOK AT DEMAND AS PROGRESS OVER
THE PAST YEAR AND A HALF
OR SO YOU KNOW THERE WAS OF
COURSE THAT HUGE SPIKE DURING
COVID THAT THAT WE SAW THAT ALL
OTHER E-COMMERCE NEW COMMERCE
PLATFORM SAW WE GENERALLY SO
THAT CONTINUE OVER THE PAST
YEAR AND A HALF AND EVEN WITH
THE REOPENING WITH PEOPLE
PROBABLY EATING AT
A RESTAURANT. WE'VE CONTINUED
TO SEE STRONG GROWTH AND STRONG
DEMAND OUR GROWTH YOUR EAR
FOR THE 1ST HALF OF 2021 IS
ALMOST A 100% FIRM 2020 AS
WE'RE STILL SEEING
INCREDIBLE GROWTH. THE OTHER
VERY FASCINATING ASPECT OF IT
IS FORCING BASKET
SIZES INCREASE. SO WHEREAS
PEOPLE WERE BUYING A 34 YARDS
WORTH OF ITEMS FOR US WEEKLY
BASIS YEAR AGO. NOW THAT'S 50
OR 60 OR
$70 AND GROWING AND PART OF
THAT IS BECAUSE THE CATEGORY
EXPANSION I DESCRIBED EARLIER
IN THE OTHER PART I THINK IT'S
SIMPLY THAT YOU KNOW PEOPLE ARE
SHIFTING A LARGER AND LARGER
CHUNK OF THEIR GROCERY SHOPPING
ONLINE.
>> I'M SURE THAT THIS PRODUCE
IS FRESH WHEN IT ARRIVES.
>> I CAN TELL YOU HOW
MUCH TIME AND EFFORT WE PUT
INTO THE PROBLEM OF HOW TO GET
APPLE. YOU DELIVER SOMEONE
SAFELY AND FRESHLY SO YOU KNOW
THERE WE HAVE BUILT
AN INCREDIBLE AMOUNT OF
TECHNOLOGY AND LOGISTICS
TECHNOLOGY THAT POWERS ALL ALL
OF THE SMART POWER IN
DECISION MAKING EVERYTHING FROM
WHEN WE PICK UP PRODUCE AT THE
FARM I WANT TO BRING IN
OUR WAREHOUSE ALL IS
TEMPERATURE CONTROL AT NO 6
DIFFERENT TEMPERATURE ZONES, WE
THEN PACK IT INTO THE BOX AND
GET DELIVERED TO CUSTOMERS
WITHIN 48 TO 72 HOURS ON
AVERAGE FOR PRODUCE AND WE SHIP
IT WITH PACKAGING WILL END FOR
THE DRIVE AND IN GREAT
CONDITION TO CUSTOMERS SO
THERE'S A LOT OF OF INDUSTRIAL
LOGIC. THAT'S THAT HAS BEEN
BUILT IN THE TECHNOLOGY THAT
POWERS THAT.
>> OKAY AT MY LAST QUESTION FOR
YOU BECAUSE WE DON'T HAVE MUCH
TIME LEFT IS PACKING MATERIALS.
WE'VE ALSO BEEN RIPPED
SPORTING A LOT ON HAD SEEN HUGE
PRICE SPIKES DURING THIS TALK
TO ME ABOUT HOW YOUR COMPANY IS
ABSORBING THOSE CARS AND WHAT
ARE THE HIGHER PRICES, SEAT.
>> AND IT'S BEEN HUGE ISSUES
THAT OVER THE PAST YOU KNOW,
EITHER A 12 MONTH YOU'VE
PROBABLY SEEN 6 OR 7 SEPARATE I
THINK REASON OF PACKING
MATERIALS ACROSS THE BOARD
THAT CARDBOARD BOXES THAT
PLASTIC BAGS PAPER BAGS.
YOU KNOW BLUEBERRY SLEEVES ALL
OF THOSE THINGS GOING UP 6, 7,
TIMES EACH TIME THAT YOU KNOW
HALF A PERCENT OR PERCENT ADDS
UP PRETTY QUICKLY AND WE HAVE
WE HAVE A TEAM INTERNALLY
THAT'S DEDICATED TO OPTIMIZING
THE SUPPLY CHAIN AND LOGISTICS.
SO AS THOSE POSSIBLY
INCREASE WE'VE LOST THAT THAN
BY BY BILLION DEFICIENCY IN
OTHER PARTS OF OUR BUSINESS
WHETHER THAT'S GREAT
FOR LABOR OR OR OTHER PACKING
MATERIALS AND FOR NOW THAT'S A
LOT OF US TO ONE, YOU KNOW,
SHE'LL OURSELVES MAN AND TO