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DTC brand Daily Harvest adds Target to growing list of retailers

An array of Daily Harvest bowls such as broccoli and cheese are displayed.

Photo: Courtesy of Daily Harvest

Daily Harvest's products are now available for sale at nearly 26,000 retail distribution points with the addition of Target, the company tells Axios.

Why it matters: The maker of better-for-you organic bowls and smoothies is positioned to grow profitably less than a year after embracing wholesale.

What they're saying: While DTC helped successfully establish the brand and will remain part of the business model, wholesale will be a key driver of the business, CEO Ricky Silver tells Axios.

Zoom in: A selection of its meals and snacks will go on sale at around 300 Target locations this week.

  • The company said in March it would begin selling its products at 82 Costco warehouses.

Catch up quick: Daily Harvest launched in retail last summer via 1,100 locations operated by Kroger.

  • It subsequently added Wegmans on the East Coast, New Seasons Market and Haggen in the Northwest, and Good Eggs in the San Francisco Bay Area, and is distributed by KeHe and UNFI.

What's next: The company is in discussions to add more retailers, but is being cautious on who it partners with to ensure it is profitable, Silver says.

Between the lines: It hasn't been all smooth digestion for Daily Harvest. The company experienced a major hiccup due to lawsuits and declining sales with the FDA eventually linking its products to sickened customers.

The intrigue: "I'm really interested in exploring how we might leverage the assets we've created on the supply chain front to be more of an aggregator of opportunity for the perishable fulfillment world," Silver says.

  • "Those are conversations we are actively exploring ... to bring greater consumer demand through one infrastructure," he says.
  • "If the right strategic acquirer came to the table with the opportunity to either accelerate our growth or help us drive greater impact on our work, we would absolutely be open to it," Silver says.

By the numbers: According to SPINS retail data, Daily Harvest is in the top five in dollar sales of natural fruit and vegetable brands. Silver declined to comment more specifically.

Flashback: Founded in 2015 by former CEO Rachel Drori, Daily Harvest raised $77 million in 2021, valuing it at $1.1 billion, per Bloomberg.

  • It generated $250 million in revenue in 2020, which was the first year of the pandemic.
  • Drori stepped down last fall as CEO and handed the role to Silver, who had been overseeing the company's supply chain operations.

1 fun thing: The company has joined sustainable farming booster The Almond Project and has a partnership with CCOF and American Farmland Trust to support farmers as they transition to organic.

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