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Grove Collaborative, a sustainable consumer products company, has launched an 11‑piece household collection designed by actress Drew Barrymore called the Fresh Horizons Collection, featuring reusable dispensers and eco‑friendly items such as candles, hand‑soap sheets, and laundry detergent sheets. At the same time, Grove is executing a turnaround strategy that includes exiting most brick‑and‑mortar wholesale partnerships, which accounted for less than 4% of revenue and were consistently unprofitable, while focusing on direct‑to‑consumer sales despite a recent decline in orders and active customers. The company is also preparing for a SPAC merger that would value it at about $1.5 billion and provide up to $435 million in cash, with plans to become 100% plastic‑free by 2025.
Grove Collaborative’s Fresh Horizons Collection, designed by Drew Barrymore, includes 11 sustainable household products with reusable packaging.
Wholesale partnerships represented under 4% of Grove’s business and have been a net loss, leading the company to exit most brick‑and‑mortar contracts.
Direct‑to‑consumer orders fell 22.8% and active customers dropped 30.4% in the latest quarter, partly due to reduced advertising spend.
Grove’s Q3 net loss narrowed to $1.3 million after a $42 million debt payment and a $15 million investment from Volition Capital.
A pending SPAC merger aims to list Grove on the NYSE under the ticker GROV, valuing the company at $1.5 billion and potentially delivering $435 million in proceeds.
The collection features multi‑purpose cleaners, hand‑soap and dish‑soap dispensers, reusable dishcloths, soy‑wax candles, hand‑soap sheets, and power‑clean laundry detergent sheets, among other household essentials.
The wholesale channel has been consistently unprofitable, representing less than 4% of revenue and reducing growth, prompting the company to focus on its direct‑to‑consumer model.
In Q3, net revenue fell nearly 22% year‑over‑year, but the net loss narrowed to $1.3 million from nearly $10 million a year earlier, aided by cost cuts and a $15 million investment.
Grove is set to merge with a SPAC and list on the NYSE under the ticker "GROV" in late Q1 or early Q2, with a valuation of about $1.5 billion and potential proceeds of up to $435 million.
The company aims to be 100% plastic‑free by 2025.
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