Cut+Dry and Instacart Announce New Partnership to Boost Ad Reach in Foodservice

Rhea-AI Summary

Cut+Dry and Instacart (NASDAQ: CART) announced a strategic partnership to integrate Instacart's Carrot Ads technology across Cut+Dry's platform. The collaboration aims to create one of the largest digital advertising platforms combining grocery and foodservice sectors.

The partnership will enable food manufacturers to directly reach buyers at the point of sale, while providing distributors access to new revenue streams through digital advertising. Instacart's Carrot Ads, which is currently used by nearly 220 retailer banners, will expand into the multi-billion dollar foodservice industry through this collaboration.

The integration will provide operators with detailed product information and menu ideas, while food manufacturers will gain nationwide reach to influence foodservice sales. The Carrot Ads capabilities on Cut+Dry will be rolled out to brands over the next few quarters.

Positive

• Partnership expands Instacart's advertising reach into the multi-billion dollar foodservice industry
• Creates new revenue stream opportunities for distributors through digital advertising
• Extends Carrot Ads technology to approximately 220 retailer banners

Negative

• Implementation timeline spans several quarters before full rollout

New collaboration gives brands one of the largest advertising platforms for grocery and foodservice

SAN FRANCISCO, Jan. 6, 2025 /PRNewswire/ -- Cut+Dry, one of the leading e-commerce and advertising platforms for independent foodservice distributors and manufacturers, and Instacart (NASDAQ: CART), the leading grocery technology company in North America, today announced that Cut+Dry will integrate Instacart's Carrot Ads technology across its platform. Carrot Ads brings the best of Instacart advertising - products, technology, and expertise - to help platforms build or grow their own advertising businesses. The new partnership will provide advertisers in foodservice with direct access to reach buyers while unlocking new revenue opportunities for distributors and operators alike.

"Food manufacturers have long struggled to connect with end buyers and influence purchasing decisions at the point of sale," said Mani Kulasooriya, Co-Founder and CEO of Cut+Dry. "Without a platform to share their brand story and product benefits, brands have been limited in their reach. Meanwhile, foodservice distributors have been left out of the rapidly growing digital advertising space. By integrating Instacart's market-leading advertising capabilities with Cut+Dry's scale and influence in foodservice distribution and digital commerce, we're creating one of the largest digital advertising opportunities in the industry. This partnership empowers brands to connect directly with buyers and drive unmatched sales growth, all while unlocking new revenue streams for our trusted distributor partners."

"Our new collaboration with Cut+Dry and their adoption of Carrot Ads will supercharge their advertising efforts, unlocking tremendous opportunities for all the players across the foodservice industry," said Andrew Nodes, VP and GM, Instacart Business & Supply Chain. "Our partnership will not only open up new opportunities for our brand partners advertising on Instacart, but also deliver value to stakeholders across the foodservice industry, including operators, distributors, and food manufacturers. Operators will get access to detailed product information, recipes, and menu ideas to make informed choices. Distributors will have the opportunity to unlock additional revenue through digital advertising opportunities. Food manufacturers will gain unmatched reach to operators nationwide, boosting brand visibility and influence in foodservice sales."

Together, Instacart and Cut+Dry will expand opportunities for brands by opening up access to the multi-billion dollar foodservice industry. Brand partners will be able to reach a broader audience and tap into the expansive foodservice market, influencing purchase choices at critical decision points. The new partnership will help drive growth, boost case sales, and enable highly targeted advertising to operators in foodservice.

Instacart launched Carrot Ads technology with approximately 70 new partners in 2023, and today, nearly 220 retailer banners utilize Carrot Ads to power their retail media business and offer ads on their e-commerce site. Instacart Carrot Ads is leveraged by retail partners, such as Sprouts, to reach consumers. With the Cut + Dry collaboration Instacart will soon reach operators, distributors, and food manufacturers in the foodservice industry.

Instacart Carrot Ads capabilities on Cut+Dry will be available to brands over the next few quarters.

For more information about Carrot Ads, visit www.instacart.com/company/retailer-platform/carrot-ads.

About Cut+Dry
Cut+Dry is the leading digital commerce platform for foodservice, seamlessly connecting distributors, operators, and manufacturers. We empower distributors to accelerate case growth, generate new advertising revenue, save on operations, and enhance operator customer satisfaction. For manufacturers, we boost revenue and case growth, syndicate rich product content, provide digital advertising, and attract new operators. Built by the same team that modernized Sysco's digital strategy, Cut+Dry is on a mission to digitize the entire Foodservice industry. To learn more, visit www.cutanddry.com.

About Instacart
Instacart, the leading grocery technology company in North America, works with grocers and retailers to transform how people shop. The company partners with more than 1,500 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 85,000 stores across North America on the Instacart Marketplace. Instacart makes it possible for millions of people to get the groceries they need from the retailers they love, and for approximately 600,000 Instacart shoppers to earn by picking, packing and delivering orders on their own flexible schedule. The Instacart Platform offers retailers a suite of enterprise-grade technology products and services to power their e-commerce experiences, fulfill orders, digitize brick-and-mortar stores, provide advertising services, and glean insights. With Instacart Ads, thousands of CPG brands – from category leaders to emerging brands – partner with the company to connect directly with consumers online, right at the point of purchase. With Instacart Health, the company is providing tools to increase nutrition security, make healthy choices easier for consumers, and expand the role that food can play in improving health outcomes. For more information, visit www.instacart.com/company, and to start shopping, visit www.instacart.com. Maplebear Inc. is the registered corporate name of Instacart.

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SOURCE Maplebear Inc. dba Instacart

FAQ

What is the impact of Cut+Dry partnership on Instacart's (CART) market reach?

The partnership expands Instacart's advertising reach into the multi-billion dollar foodservice industry, creating one of the largest digital advertising platforms combining grocery and foodservice sectors.

How many retail banners currently use Instacart's (CART) Carrot Ads technology?

Nearly 220 retailer banners currently utilize Carrot Ads to power their retail media business and offer ads on their e-commerce sites.

When will Instacart's (CART) Carrot Ads capabilities be available on Cut+Dry?

The Carrot Ads capabilities will be rolled out to brands over the next few quarters.

What benefits does the Cut+Dry partnership bring to Instacart (CART) distributors?

Distributors will gain access to new revenue opportunities through digital advertising and the ability to participate in the rapidly growing digital advertising space.

How will the Cut+Dry partnership affect Instacart's (CART) brand partners?

Brand partners will gain broader audience reach, ability to influence purchase choices at critical decision points, and access to the expansive foodservice market.