Public Goods Debuts at CVS and Lands New Capital
Public Goods, a membership-drive, one-stop shop selling high-quality, sustainable grocery, household and personal care products has received a significant strategic investment from the Growth Fund of L Catterton, a private-equity firm.
Terms of the transaction weren't disclosed, but the deal was announced as news emerged that CVS would stock goods from Public Goods in the chain’s retail stores.
Launched in 2017, Public Goods offers members access to products the company has described as well designed and eco-friendly, and which sell at competitive price points. Through a $59 annual membership, consumers can purchase products at wholesale prices and through direct-to-consumer and wholesale channels. Public Goods said it has experienced significant growth recently, with sales increasing five-fold since February.
The investment from Greenwich, Connecticut-based L Catterton will support the introduction of product categories and expansion into more marketing channels, with a focus on driving customer acquisition. Later this month, for example, Public Goods expects to launch a product category for pets.
"Excitement is reverberating throughout the Public Goods team," said Morgan Hirsh, founder and CEO of New York-based Public Goods. "We've always had a big vision, and we've been able to accomplish a lot with our small, highly dedicated team. As we look to the future, L Catterton has the capital, resources and experience to help us achieve our next phase of growth and deliver more of the high-quality products and benefits that our members have come to expect."
L Catterton has also invested in Nutrafol, Tula, ThirdLove, Rhone, Zarbee's and meal-kit provider Home Chef.
With its CVS Pharmacy subsidiary operating almost 10,000 locations nationwide, Woonsocket, Rhode Island-based CVS Health is No. 6 on The PG 100, Progressive Grocer’s 2020 list of the top food and consumables retailers in in North America.