Grove Attacks the Amazon Aggregation Market With New Division Upexi
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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
Grove Inc. (NASDAQ: GRVI) has launched a wholly-owned division called Upexi to use its market and e-commerce skills in the Amazon.com Inc. (NASDAQ: AMZN) aggregation market, which, according to Marketplace Pulse, has attracted more than $10 billion in funding since 2020.
The market is realizing that certain brands and e-commerce operations, both existing and new, can be scaled using the same tools and skills as each other. There is significant value in having the tools, experience using them successfully, and adding more brands to build on that expertise upon.
Grove has significant experience in the hemp and CBD space and is expanding into other areas that will benefit from the same experience and skill set. Grove recently acquired VitaMedica, a nutraceutical company with a rapidly growing e-commerce and Amazon profile.
Grove already has an in-house team of digital marketers to add value and is actively pursuing opportunities in the wellness, beauty, pet care, and health arenas that can benefit from the same expertise.
Grove’s current revenue is driven by its hemp business. Highlights of fiscal 2021 include a 250% increase in revenue to $24.1 million. Net earnings were $2.9 million, or 25 cents per share. Estimates for fiscal 2022 revenue is between $48 million and $55 million.
Grove’s success in the hemp market is driving the company’s revenue and profits, and the new division will benefit from the skills and personnel that created this success — those who can market one product have what it takes to market another.
By collecting products and companies in other verticals Grove can bring its skills to more markets and multiply the return on investment and the company’s knowledge base.
“We’ve seen exponential growth in our hemp business over the past 2 years and continue to grow,” Grove CEO Allan Marshall said. “It’s now afforded us the ability to expand into other verticals. Amazon aggregation has been a goal for us since the beginning. We’re hoping to add 10-plus Amazon and e-commerce businesses to the portfolio over the next year and another 10 the following. We want to reward people for what they’ve done and give them the ability to see their brands grow under Grove. In many cases, we hope to attract the Amazon and e-commerce experts behind these brands and continue to add talent to our team.”
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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