GrubMarket expands presence with Bay Cities, Sally Produce acquisitions

USA – Private eCommerce food company GrubMarket has strengthened its foothold in the food service and wholesale produce sectors with the acquisition of Bay Cities Produce and Sally Produce.

GrubMarket recently completed the acquisition of Bay Cities Produce, a food service distributor based in San Leandro, California.

Bay Cities specializes in fresh-cut produce and prepared fruits and vegetables, supplying restaurants, schools, universities, government agencies, and retailers across Northern California.

This acquisition integrates Bay Cities Produce with GrubMarket’s Daylight Foods, one of California’s largest food service providers.

The move allowed GrubMarket to retain the majority of Bay Cities’ customers, ensuring there were no disruptions during Thanksgiving, one of the busiest periods of the year.

From November to the end of 2024, the company 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 CEO Mike Xu said that Bay Cities Produce had built a strong reputation in the food service industry over many decades and that they were excited to welcome its employees and customers to the GrubMarket family.

He explained that the acquisition strengthened Daylight Foods’ position in the market and aligned with GrubMarket’s mission to improve the food supply chain.

Xu emphasized their commitment to maintaining Bay Cities’ tradition of service and quality while introducing them to GrubMarket’s advanced technology solutions, including GrubAssist AI, WholesaleWare ERP, Orders IO, and GrubPay.

Shortly after acquiring Bay Cities, GrubMarket completed its purchase of Sally Produce, a major Asian produce wholesaler based in Gilroy, California. Sally Produce supplies fresh fruits and vegetables, focusing on Asian greens, pomelos, and melons sourced from local farms.

The company serves more than 100 business customers, including major Asian grocery stores such as 99 Ranch Market, as well as restaurants in the San Francisco Bay Area, Los Angeles, and San Diego.

Sally Produce was founded in 2001 by entrepreneur Sally Huang and has developed long-term relationships with key Asian grocery retailers across Northern California and Washington State.

The company operates a 40,000-square-foot warehouse in Gilroy, a key location that connects suppliers and customers along the West Coast.

“For years, we’ve been committed to bringing farm-fresh, high-quality Asian produce to our customers across the West Coast. We’ve built strong relationships with local growers, allowing us to source directly and ensure freshness and quality control,” said Sally Huang, owner of Sally Produce.

“Joining GrubMarket marks an exciting next chapter for Sally Produce. Being part of the GrubMarket family will enable us to expand our reach while maintaining the exceptional quality and personalized service our customers choose us for. We are also excited to join a team that shares our passion for technology and cultivates innovation.”

Mike Xu said that they were pleased to have Sally Produce join GrubMarket. He noted that under Sally Huang’s leadership, the company had built a strong reputation as a leading supplier of Asian fresh produce to grocers and restaurants along the West Coast.

Xu emphasized that Sally Produce had consistently provided a dependable, high-quality supply of specialty Asian vegetables and fruits sourced locally.

He explained that the acquisition further reinforced GrubMarket’s presence in the West Coast market and reflected its commitment to expanding options for existing customers while supporting local California agriculture. He expressed optimism about working together for continued growth as one team.

As part of GrubMarket’s portfolio, Sally Produce will now have access to GrubMarket’s advanced technology solutions, including WholesaleWare, an ERP software for financial management and inventory tracking; GrubAssist AI, a suite of digital tools for automation and analysis; Orders IO, a mobile eCommerce platform; and GrubPay, a digital payments system designed for the food supply chain.

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