Supie

Last updated

Supie
IndustryGroceries
Founded2021
FounderSarah Balle
Defunct2023 (2023)
FateLiquidated
Headquarters Auckland
Area served
Revenue$6.5 million (June 2022)
Number of employees
118 (November 2023) [1]

Supie was an online New Zealand supermarket. It was launched in 2021 by Sarah Balle and failed in 2023 after running out of cash. It was put into voluntary administration on 30 October, and subsequently liquidated, owing over $2.1 million to over 4,000 creditors. Its goal was to disrupt the country's supermarket duopoly, operated by Foodstuffs and Woolworths. [2] [3]

Contents

Launch

Supie was launched in May 2021 in Auckland by Sarah Balle with the goal of disrupting New Zealand's supermarket duopoly, operated by Foodstuffs and Woolworths. [2] [4] [5] In November, it raised $2.5 million in seed funding, led by Icehouse Ventures. [6] [5] In August 2022, it raised $3.9 million. [7] Balle said that Supie would need $150 million to compete with the two major supermarket operators. [8]

In November 2021, Supie had 6,000 customers. [6] During a COVID-19 lockdown in Auckland 2021, Supie had a growth rate of 1700%. [5] By June 2022, it had 23,000 members and $6.5 million in annual revenue, [9] and in July 2023, it had 55,000 customers and about 130 staff. [3]

In 2022, Supie started wholesaling for small retailers such as dairies. [10] In September, they started selling meal bundles in partnership with the meal planning startup MenuAid. [11]

Supie was planning to expand coverage to the entire North Island in 2024, from which it was only available in Auckland, Tauranga, and the Waikato. This would have made its products available to 77% of the country's population, an increase from 50%. [12] They also planned on launching physical stores, which would have operated 24/7 and be unmanned. [13]

Closure

On Monday 23 October 2023, Richard Nacey and Stephen White, of PwC New Zealand, were appointed administrators of Supie. [14] Customers started reporting that they were unable to make purchases on the website, [3] and a few days later, on 30 October, Supie was put into voluntary administration, after it had run out of cash, [15] partly due to a lack of sales, [2] and because a key investor pulled out. [16] [17] Employees were told that they may not receive pay for work they had done the week prior, [3] which was later paid by an anonymous donor. [18] Many of Supie's perishable goods — such as meat, eggs and dairy products — were left to rot on the ground outside of a warehouse after its cooling equipment was liquidated. [19] [20] $400,000 worth of goods were sent back to suppliers, and other recoverable goods were planned to be sent to a food rescue organisation. [20]

A report published in November revealed that Supie owed $2.1 million to over 4,000 creditors, which included Foodstuffs, Woolworths, Fonterra, Coca-Cola, NZ Post, Tegel Foods, and Warehouse Stationery. Inland Revenue was owed almost $900,000. On 16 November, 89 staff were owed $120,000 in outstanding wages and holiday pay. [2] When Supie went into liquidation, it had $179,000 in the bank. [2]

In January 2024, Supie's trademarks and website domain was bought by The Meat Box, an online butcher. [21] [22]

Reactions

Grocery commissioner Pierre van Heerden described the closure as "disappointing", as the company did not become a competitor in the supermarket duopoly. [23] National deputy leader Nicola Willis shared the same sentiment, saying that she was "gutted". [24] Consumer NZ chief executive Jon Duffy encouraged the Grocery Commissioner to investigate if any anti-competitive behaviour resulted in Supie's closure. [25]

Operations

Supie customers were offered a $99 annual subscription for free grocery delivery and 2% minimum cashback on all orders. [4] [12] At the time of launch, it stocked about 2,500 products which is compared to the 8,000 products that a Pak'nSave offers. [4] By June 2022, it offered over 6,000 products. [9] Until closure, Supie was only available in Auckland, Tauranga, and the Waikato, which amounted half of the country's population. [12]

Rather than buying from the two major supermarkets, Supie created its own supply chain, whose suppliers included those who supplied the major supermarkets. [26] Supie believed that they were paying higher prices to suppliers than the major supermarkets. They were able take these higher prices as they had lower costs, such as by not having physical locations. [27]

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References

  1. ↑ "Report reveals why Supie collapsed, what staff are owed". 16 November 2023. Archived from the original on 18 November 2023. Retrieved 10 February 2024.
  2. 1 2 3 4 5 "Online grocer Supie owed $2.1m to more than 4000 creditors - report". 1 News . Archived from the original on 16 November 2023. Retrieved 16 November 2023.
  3. 1 2 3 4 Mcilraith, Brianna (30 October 2023). "Supie staff told they may not receive pay as company goes into administration". Stuff. Archived from the original on 17 November 2023. Retrieved 17 November 2023.
  4. 1 2 3 Foxcroft, Debrin (14 April 2021). "Supie, an online alternative to traditional supermarkets, plans to open in Auckland". Stuff . Archived from the original on 24 February 2024. Retrieved 4 February 2024.
  5. 1 2 3 "Supermarket startup Supie to put $2.5m seed funding towards growth". RNZ. 4 November 2021. Archived from the original on 4 February 2024. Retrieved 4 February 2024.
  6. 1 2 Mcilraith, Brianna (11 November 2021). "'Netflix for grocery shopping' Supie raises $2.5 million in seed round". Stuff . Archived from the original on 11 November 2021. Retrieved 4 February 2024.
  7. ↑ Carroll, Melanie (15 August 2022). "Where to next for Supie after a $3.9 million thumbs-up from investors?". Stuff . Archived from the original on 24 February 2024. Retrieved 5 February 2024.
  8. ↑ Pullar-Strecker, Tom (28 October 2021). "Arm wrestle for share of $22b groceries market intensifies". Stuff . Archived from the original on 24 February 2024. Retrieved 4 February 2024.
  9. 1 2 Carroll, Melanie (29 June 2022). "Supie hopes to raise up to $5 million through Snowball Effect". Stuff . Archived from the original on 24 February 2024. Retrieved 4 February 2024.
  10. ↑ Shaw, Aimee (19 January 2023). "Price drop: The small supermarket undercutting the major players". Stuff . Archived from the original on 24 February 2024. Retrieved 7 February 2024.
  11. ↑ Mcilraith, Brianna (10 September 2022). "Supie, MenuAid work together to offer shoppers a dinner alternative". Stuff . Archived from the original on 24 February 2024. Retrieved 8 February 2024.
  12. 1 2 3 Mcilraith, Brianna (25 October 2023). "The 'cheaper' supermarket option that 50% of the country can't access". Stuff . Archived from the original on 24 February 2024. Retrieved 5 February 2024.
  13. ↑ Mcilraith, Brianna (5 July 2023). "Supie looks to open high-tech, unmanned, 24/7 physical stores". Stuff . Archived from the original on 24 February 2024. Retrieved 5 February 2024.
  14. ↑ Mcilraith, Brianna (30 October 2023). "Supie staff told they may not receive pay as company goes into administration". Stuff. Archived from the original on 17 November 2023. Retrieved 17 November 2023.
  15. ↑ "Online grocer Supie placed in voluntary administration". 1 News. Archived from the original on 17 November 2023. Retrieved 17 November 2023.
  16. ↑ "Supie in administration after key investor pulls support". NBR | The Authority since 1970. 30 October 2023. Archived from the original on 5 February 2024. Retrieved 5 February 2024.
  17. ↑ Shaw, Aimee (1 November 2023). "Supie administrators receive 'interest' in brand IP, assets". Stuff . Archived from the original on 24 February 2024. Retrieved 6 February 2024.
  18. ↑ "Supie workers to receive final paycheque after anonymous donation". 1 News. Archived from the original on 3 February 2024. Retrieved 3 February 2024.
  19. ↑ "Supie collapse: Veges, chilled and frozen food left to rot". 1 News. Archived from the original on 5 February 2024. Retrieved 5 February 2024.
  20. 1 2 Milne, Jonathan (14 December 2023). "Supie suppliers dismayed at food left to rot by liquidators". Newsroom. Archived from the original on 5 February 2024. Retrieved 5 February 2024.
  21. ↑ "The Meat Box Acquires Supie Brand | Scoop News". www.scoop.co.nz. Archived from the original on 3 February 2024. Retrieved 3 February 2024.
  22. ↑ "Supie partially snapped up by online butcher the Meat Box". The New Zealand Herald . 24 January 2024. Archived from the original on 24 January 2024. Retrieved 3 February 2024.
  23. ↑ Edmunds, Susan (31 October 2023). "New grocery commissioner 'disappointed' Supie has hit trouble". Stuff . Archived from the original on 24 February 2024. Retrieved 3 February 2024.
  24. ↑ Sowman-Lund, Stewart (31 October 2023). "Nicola Willis 'gutted' by Supie closure, wants new supermarket competitors". The Spinoff. Archived from the original on 4 February 2024. Retrieved 4 February 2024.
  25. ↑ "Supie failure: Nicola Willis says third entrant needed to 'break up' supermarket duopoly". RNZ. 31 October 2023. Archived from the original on 5 February 2024. Retrieved 5 February 2024.
  26. ↑ Carroll, Melanie (5 July 2022). "NZ online grocery retailer Supie looks to expand its wholesale business". Stuff . Archived from the original on 24 February 2024. Retrieved 7 February 2024.
  27. ↑ "'Giving more power': Online grocer says Govt's supermarket shakeup will make Kiwis more reliant on the duopoly". Newshub. Archived from the original on 14 April 2023. Retrieved 10 February 2024.
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