Collectiv Food Raises $16M Series A Funding - Direct Food Sourcing

The Evolving Food Supply Chain and the Rise of Collectiv Food

Contemporary consumers increasingly desire knowledge regarding the origins of their food, a trend significantly impacting professional culinary environments. Traditionally, a distinct separation existed between food suppliers and distribution channels like restaurants.

Historically, substantial wholesalers positioned between producers and buyers often exerted pressure on producers through unfavorable pricing and delayed payments. Professional kitchens now have the potential to bypass this issue by establishing direct relationships with food producers.

However, managing numerous individual supplier relationships presents a logistical challenge. This was previously impractical, but the advent of the internet has changed the landscape.

Collectiv Food: A New Approach

Collectiv Food is a recently established company introducing a novel model to the food supply chain. The company asserts that it directly procures products from suppliers, resulting in cost benefits for both parties involved.

Key competitors in the market include established wholesalers such as Brakes, Bidfood, and Transgourmet.

Recent Funding and Expansion

Collectiv Food has successfully secured £12 million (equivalent to $16 million) in its Series A funding round. This investment was spearheaded by VNV Global, with participation from VisVires New Protein (VVNP), Octopus Ventures, Norrsken VC, and existing investors like Partech, Colle Capital, and Mustard Seed.

Frontline Ventures initially invested in the company back in 2017.

Operational Model and Benefits

Since its launch in 2019, Collectiv Food has been operating in both the U.K. and France. The company’s core strategy involves sourcing food directly from producers, eliminating the intermediary wholesaler, and delivering directly to professional kitchens.

Its customer base encompasses restaurants, hotels, catering services, meal-kit providers, and dark kitchens. Collectiv Food claims its method, utilizing a network of distribution points within cities, reduces CO2 emissions by 50% compared to conventional supply chains.

Furthermore, the company highlights benefits such as improved pricing, fresher products, enhanced transparency, traceability, and more dependable service.

Notable Clients

Among Collectiv Food’s clientele are prominent names like Big Mamma Group, The Hush Collection, Dirty Bones, Megan’s, Crussh, Butchie’s, Cocotte, Tossed, and Fresh Fitness Food.

Vision for the Future

Jeremy Hibbert-Garibaldi, the founder of Collectiv, stated that the company is propelled by several converging factors. These include growing consumer demand for food provenance, urban air pollution regulations impacting freight logistics, and a hospitality sector seeking margin improvements amidst staffing challenges.

He envisions Collectiv Food becoming a leading food distribution company in Europe, and eventually globally.

Investor Perspective

Björn von Sivers, an investment manager at VNV Global, commented on Collectiv’s innovative managed marketplace. He emphasized its ability to connect a fragmented supply base of producers with the equally fragmented demand from professional kitchens, fostering greater transparency and network efficiencies for all stakeholders.

The Genesis of Collectiv Food

Hibbert-Garibaldi’s prior experience as a forensic accountant provided the initial insight for Collectiv Food. While investigating a major U.K. supermarket chain and its wholesale operations, he uncovered instances of unethical conduct towards suppliers.

“I quickly came to the conclusion that food supply chains were fundamentally flawed, characterized by a lack of transparency and practices that did not benefit any party involved,” he explained.

Driven by Passion and Understanding

Inspired by his French and Italian heritage and a deep-seated passion for food, Hibbert-Garibaldi left his previous profession. He then spent considerable time in restaurant kitchens to gain firsthand understanding of their challenges.

“I aimed to comprehend the difficulties restaurants faced in sourcing high-quality products, knowing their origins, and receiving reliable, sustainable deliveries,” he said. “This research formed the basis of my business plan and investor outreach.”

Looking Ahead

Whether Collectiv Food can successfully scale its operations and disrupt the expansive food supply chain industry remains to be seen. However, its potential to appeal to both suppliers and distributors positions it as a company to watch closely.