GrubMarket says it has completed the acquisition of Bay Cities Produce, a foodservice distributor based in San Leandro, Calif.
The private food e-commerce company says it is an artificial intelligence-powered technology enabler and digital transformer of the U.S. food supply chain industry.
For close to eight decades, Bay Cities Produce has been a leader in the foodservice sector, specializing in fresh-cut produce and prepared fruits and vegetables, and offering wholesale distribution to restaurants, schools and universities, government agencies and retailers across Northern California, according to a news release.
Bay Cities Produce was founded in 1947 by Albert Del Masso. After taking the reins from his father, Albert’s son Steve Del Masso continued to build on his father’s legacy and established Bay Cities Produce as a supplier known for its customer service, strong commitment to transparency and food safety standards, and its deep expertise in custom produce processing, the release said. In 2006, the company expanded into a 55,000 square foot, enhancing its ability to process fresh products at a high volume.
GrubMarket says the acquisition allows it to realize major operational synergies and efficiencies between Bay Cities Produce’s operations and GrubMarket’s own Daylight Foods, one of the largest foodservice companies in California.
Led by Keith Brewer, chief operating officer for Daylight Foods and vice president of operations for GrubMarket, and Chris Vlahopouliotis, general manager for Daylight Foods, the Daylight Foods team worked swiftly to hire and onboard former Bay Cities Produce employees and seamlessly transfer customer accounts, retaining a vast majority of Bay Cities Produce’s customers, according to the release. Their efforts resulted in a seamless transition, the company says, with no disruptions to Thanksgiving deliveries, one of the busiest weeks of the year. In total, the team shipped 170,000 cases of product to customers between the transition in November through the end of 2024, the release said.
“When the Bay Cities Produce opportunity was first presented to us, we knew we had to act quickly to transition the business effectively,” Brewer said. “We worked around the clock, hiring over 120 Bay Cities employees into the Daylight family. Our sales team contacted over 100 customers to assure them that there would be no disruption to their service, and I’m happy to report that we successfully retained the vast majority of Bay Cities’ business. For us, this acquisition is about more than just business growth; it’s about community, continuity and keeping food moving efficiently through the supply chain.”
“Bay Cities Produce has been a well-respected name in the foodservice industry for decades, and we are honored to welcome its employees and customers into the GrubMarket family,” said GrubMarket CEO Mike Xu. “Bay Cities Produce and our company, Daylight Foods, have tremendous synergies, and this acquisition both complements and strengthens Daylight Foods’ position as a leader in the market. This acquisition represents our commitment to modernizing the food supply chain while honoring and preserving relationships that have been built over decades of business partnerships. We will ensure that Bay Cities’ legacy of service and quality continues to thrive in the digital age as we introduce them to GrubMarket’s technology solutions, including GrubAssist AI, WholesaleWare ERP, Orders IO and GrubPay.”
As part of GrubMarket, Bay Cities Produce will have access to GrubMarket’s proprietary, AI-powered software solutions, including: WholesaleWare, a software-as-a-service ERP platform that provides food industry wholesalers, distributors, and shippers with seamless financial management, powerful sales support, online ordering, precise inventory management, lot traceability, grower accounting and automated routing and logistics; GrubAssist, GrubMarket’s suite of agentic enterprise AI assistants that empower food supply chain businesses with deep insights, intelligent analysis and automated order processing; Orders IO, GrubMarket’s custom-branded, mobile e-commerce solution; and GrubPay, the company’s digital payments platform specifically designed for the needs of the food supply chain industry, the release said.
