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Brandless

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Brandless
Company typePrivate
IndustryConsumer packaged goods (CPG), grocery
Founded2016; 8 years ago (2016)
FoundersIdo Leffler
Tina Sharkey
Headquarters
San Francisco, California, U.S.
,
United States
Area served
United States
Key people
Ryan Treft (CEO)[1]
ProductsFood
Beauty
Personal care
Housewares
Number of employees
80 (2019)
Websitebrandless.com

Brandless is an American e-commerce company that manufactures and sells products under its own Brandless label.[2] Founded by Ido Leffler and Tina Sharkey, it launched in July 2017 with a selection of 115 items, many of them marketed as healthy and environmentally-conscious.[3][4][5] On 10 February 2020, Brandless and key investor SoftBank confirmed that Brandless was terminating its operations.[6] The company subsequently advertised that it would relaunch in the summer of 2020. Less than 6 months later, Brandless re-opened as a trading name of Onward Partners, LLC, a joint partnership of marketing firm Ikonifi and Clarke Capital Partners. [1]

History

Sharkey and Leffler met while both were living in Mill Valley, California. Sharkey, the founder of iVillage and the former CEO of BabyCenter, had a background in online communities, and Leffler, the founder of several companies, including Yes To, Inc. and Yoobi, had experience in consumer products.[4]

In mid-2016, Sharkey resigned from her position as CEO of Sherpa Foundry to become CEO of Brandless, with Leffler serving as its chairman.[7] The company raised $16 million in funding led by Redpoint Ventures in November 2016,[8] and at launch had received a total of $50 million in venture capital from New Enterprise Associates, Google Ventures, and others.[4]

In 2018, the company launched a pop-up store in Los Angeles in May.[9] Brandless launched a second, larger pop-up store in New York in October 2018.[10]

In May 2019, Brandless raised $240 million as a part of its series C funding round.[11] Soon after, Tina Sharkey stepped down as CEO after friction between her and lead investor SoftBank Vision.[12]

In February 2020, Brandless announced that it would cease operations,[13] citing fierce competition and business model inviability in the direct-to-consumer market. The business laid off 70 staff members (about 90% of the operation at the time), with the remaining employees managing open orders.[14]

In June 2020, the business relaunched in a more limited form, led by Ryan Treft and a small team. Treft bidded for the business with a "more pragmatic" vision.[1]

Business model

Brandless was based in San Francisco, California, and operated an additional facility in Minneapolis, Minnesota. It marketed its foods as GMO-free, its health and beauty items as cruelty-free, and paper products as adhering to sustainable forestry practices.[2] Products' labels consist of only a white box with the product's name and two to five descriptors, such as organic, kosher, or gluten-free.[15] Brandless is a brand of its own.[16]

The company operated a direct-to-consumer model[8] which it promoted as reducing markups compared to conventional brand-name items. Initially, Brandless priced single items at $3, or multiple items for $3 total.[4][17][18] That policy changed in January 2019 and higher-priced products were offered.[19]

In 2019, Brandless began to offer an optional subscription service to its customers.[20]

Awards and recognition

In February 2018, Brandless received the Best NewCo of the Year award from NewCo Honors for disrupting retail markets and donating 250,000 meals to Feeding America.[21] Additionally, it was awarded "StartUp of the Year" by AdAge,[22] one of "The World' Most Innovative Companies in Retail" by Fast Company.[23]

See also

References

  1. ^ a b c Wells, Jeff (2020-06-22). "Brandless is back". Grocery Drive. Retrieved 2020-09-08.
  2. ^ a b Meyer, Zlata (July 14, 2017). "What does $3 buy you? On this website, everything". USA Today. Retrieved 19 October 2017.
  3. ^ Terlep, Sharon (July 12, 2017). "Brandless Fights Big Brands with $3 Pricing". Wall Street Journal. Retrieved 19 October 2017.
  4. ^ a b c d Feldman, Amy (July 11, 2017). "Brandless Hopes To Shake Up Consumer Products With Direct-To-Consumer Basics For $3". Forbes. Retrieved 19 October 2017.
  5. ^ "Co-founders of online grocer Brandless on their mission to make shopping simpler". CBS This Morning. July 13, 2017. Retrieved 19 October 2017.
  6. ^ "SoftBank-backed Brandless to lay off staff, shutter operations". CNBC Retail. February 10, 2020. Retrieved 10 February 2020.
  7. ^ Anzilotti, Eillie (July 13, 2017). "This New Site Sells Food And Household Essentials–All For $3 Or Less". Fast Company. Retrieved 19 October 2017.
  8. ^ a b Rao, Leena (December 7, 2016). "Exclusive: Investors Bet on Brandless as the Next Procter and Gamble for Millennials". Fortune. Retrieved 20 October 2017.
  9. ^ "Discount start-up launches first pop-up—with a twist | Chain Store Age". Chain Store Age. 2018-04-17. Retrieved 2018-04-17.
  10. ^ Crook, Jordan (October 2018). "Brandless is launching a pop-up shop in NYC". Tech Crunch. Retrieved 11 April 2019.
  11. ^ htc (2019-05-30). "Brandless Receives $240 Million In Series C Funding Round, Enabling Continued Growth For The E-Commerce Startup". HiTechChronicle. Retrieved 2019-06-01.
  12. ^ Bernard, Zoë (2019-06-19). "Inside the Turmoil at SoftBank-Backed Brandless". The Information. Retrieved 2020-09-08.
  13. ^ Loizos, Connie (2020-02-10). "SoftBank-backed Brandless shuts its doors for good". Techcrunch. Retrieved 2020-09-08.
  14. ^ Dumont, Jessica (2020-02-10). "Brandless shuts down". Grocery Drive. Retrieved 2020-09-08.
  15. ^ Schwab, Katharine (July 14, 2017). "Lessons On Branding From A Company That Has No Brand". Fast Company Design. Retrieved 20 October 2017.
  16. ^ Pomranz, Mike (July 12, 2017). "Online Grocery Store 'Brandless' Sells Everything for $3". Food and Wine. Retrieved 22 October 2017.
  17. ^ Peterson, Laurie (September 5, 2017). "Interview with Tina Sharkey, CEO and Co-Founder of Brandless". Whole Foods Magazine. Retrieved 20 October 2017.
  18. ^ "Startup Aims to Offer Savings by Ditching Brands for Good". NBC News 2. September 3, 2017. Retrieved 20 October 2017.
  19. ^ Ruff, Corinne (March 20, 2019). "Brandless expands health and wellness assortment". Retail Dive. Retrieved 11 April 2019.
  20. ^ Ruff, Corinne (January 17, 2019). "BRIEF Brandless launches subscription option". Retail Dive. Retrieved 11 April 2019.
  21. ^ "2018's Most Inspiring Companies: The NewCo Honors Award Recipients". NewCo Shift. 2018-02-27. Retrieved 2018-03-16.
  22. ^ "Ad Age Announces The Winners Of The 2018 Creativity Awards". Ad Age. March 2018. Retrieved 11 April 2019.
  23. ^ "2019 The World's Most Innovative Companies". Fast Company. January 2019. Retrieved 12 April 2019.
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