Grove Collaborative has introduced Grove Wellness, a product hub featuring a personalization engine designed to sharpen recommendations around consumers’ evolving health and wellness needs. Grove sells more than 200 products across 40 brands in this category, including multivitamins, women’s health, digestion, immunity, sleep and beauty. Grove plans to introduce more third-party brands throughout 2023, prioritizing products that offer ingredient transparency, National Science Foundation (NSF) certification and sustainable packaging.
Products sold on Grove Wellness must meet the company’s four-point Feel Good Wellness Standard:
- Strict ingredient standards;
- Expert vetting by a registered dietician;
- Price match and happiness guarantee, including a 30-day return period; and
- Plastic and carbon neutral.
“According to survey data, over 75% of our customers are currently buying wellness products and 89% of them trust Grove more than other brands to provide them,” said Stuart Landesberg, Co-founder and CEO of Grove Collaborative in a statement. “Our mission has always been to make consumer products a positive force for human and environmental health. The wellness industry is also larger than the home care industry and growing faster. This represents an incredible opportunity to advance our mission and grow our business.”
Grove has recently been expanding its retail presence, with its July 2022 debut in Kohl’s, Giant Eagle and Meijer and a bigger presence in Target. Additionally, Grove launched its flagship home care brand on Amazon and in select Walmart stores last month.
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Grove was acquired by Virgin Group Acquisition Corp. II in June 2022 in a deal that took the company public. However, by December 2022 Grove’s low stock price put the company at risk of delisting from the New York Stock Exchange (NYSE). The company’s 2022 financial results revealed net revenue of $321.5 million, down 16% year-over-year, and a net loss margin of 27.3%, an improvement over the company’s 35.4% loss in 2021. Grove secured a $35 million asset-based revolving credit facility on March 10, 2023.
“We made considerable strides toward profitability in 2022, ending the year at a significantly lower burn rate than that with which we began it,” said Sergio Cervantes, CFO of Grove in a statement. “Yet the macro environment remains challenging, consumers continue to feel pressure and we are seeing the impact across our business, particularly in retail sales. We view 2023 as a transitional year for Grove, during which we continue to focus on profitability, stabilize our core business as we lap the reduction in advertising spend that began in June 2022, and generate new sources of growth to position ourselves for profitable growth in 2024,”
CEO Stuart Landesberg spoke about long-term value creation for Grove Collaborative on the Retail Remix podcast in January 2023.
