BOSTON — Food waste mitigation platform Spoiler Alert raised $11 million in a Series A funding round led by Collaborative Fund, with participation from Acre Venture Partners, The Betsy & Jesse Fink Family Foundation, Maersk Growth, Spring Point Partners and Valley Oak Investments.
Spoiler Alert helps perishable consumer packaged goods brands manage excess and slow-moving inventory. Working exclusively at the manufacturing plant or distribution center level, it offers a B2B sales platform that enables brands to manage their liquidation process across a private network of discount retailers and nonprofit channels.
The capital injection follows a year of rapid growth for the Boston-based software company, which posted more than 400% growth in gross transaction value in 2021. Kraft Heinz Co., Nestle SA, Campbell Soup Co., Danone North America, KeHE and HelloFresh are among the growing list of industry leaders using the platform to manage their B2B liquidation efforts.
The company’s success has risen alongside the need for brands to respond to supply chain volatility and the growing urgency of the climate crisis, said Emily Malina, co-founder and chief product officer.
“One of our core beliefs is that waste is no longer a necessary or acceptable cost of doing business,” she said. “Everything we do is geared towards moving perishable inventory faster to benefit brands, retailers, consumers and the planet.”
Brands that use the platform to sell their excess, short-dated and obsolete inventory have seen increased profitability, added Camila Leal, senior manager of Danone North America’s Zero Waste initiative.
“Danone North America has seen significant reductions in finished goods waste and higher returns on its markdown sales program through the introduction of Spoiler Alert's liquidation platform,” she said.
Spoiler Alert also is powering opportunistic purchasing for discount retailers and for emerging direct-to-consumer companies. As an example, the company has helped Misfits Market collaborate with vendors and expand its assortment, said Daniel Litwin, vice president of procurement at the sustainability-focused online grocery retailer.
Spoiler Alert will use funds from its $11 million Series A round to expand its team. It plans to invest in platform enhancements to move more inventory through diversified channels. Investments in go-to-market efforts to support product category diversification also are on the horizon.
“Many Americans continue to depend on discount retail to fight food and hygiene insecurity,” said Ricky Ashenfelter, co-founder and chief executive officer of Spoiler Alert. “I am very proud of what our team has built so far, and we look forward to empowering brands and retailers to continue building loyalty with cost- and climate-conscious consumers”Craig Shapiro, founder and managing partner of Collaborative Fund, will join the company's board as part of the investment