Cloud supply chain company Stord is adding cold storage capacity to its growing network of flexible warehousing. The company on Tuesday announced a partnership with Fresh Del Monte to gain access to 22 Fresh Del Monte facilities for Stord customers looking for e-commerce cold storage space.
“Our customers trust Stord to support their most critical operations. Whenever we bring a new partner into our network, we make sure that they uphold the highest standards of reliability and quality,” said Sean Henry, Stord CEO and co-founder. “Fresh Del Monte is a well-respected leader in the cold storage space and we have complete confidence that this relationship will be a big win for our customers.”
This is Stord’s first foray into cold storage capabilities.
Fresh Del Monte has 34 facilities in North America and runs Network Shipping, which is a third-party network that transports goods across the world. The company, known for its fresh-cut fruit and vegetables and prepared foods, also owns Tricont Trucking and Tricont Logistics, which utilizes the company’s ships, ports and temperature-controlled warehouses.
According to a joint press release announcing the partnership, Fresh Del Monte has been looking for ways to utilize underutilized portions of its infrastructure.
“We’re proud to work with Stord to bring our state-of-the-art cold infrastructure to scaling businesses,” said Mohammad Abu-Ghazaleh, Fresh Del Monte chairman and CEO. “We have an impressive logistics infrastructure and it only makes sense to collaborate with a company like Stord as we continue to leverage our assets and grow our distribution network.”
As of last fall, refrigerated and frozen foods accounted for 9% and 13%, respectively, of total e-commerce grocery sales. With this partnership, Stord is now providing temperature-controlled e-commerce sellers access to a flexible warehouse network and Stord’s technology.
Henry told Modern Shipper that Stord customers will have access to some Fresh Del Monte supply chain capabilities and that all order management and inventory management will be visible and orchestrated by Stord’s cloud supply chain software.
While Fresh Del Monte is making space in only 22 of its 34 facilities available, Henry said those locations are strategically located throughout the East Coast, West Coast and Midwest, giving Stord customers nationwide fulfillment capabilities.
Henry added that Stord has received requests from customers for cold storage capabilities, but until the Fresh Del Monte opportunity arose, it had been unable to answer those requests. He sees Stord’s market opportunity for cold storage including frozen, refrigerated and chilled products, such as fresh fruit and vegetables, meat and poultry, prepared foods and drinks.
In June, Stord added 780,000 square feet of warehouse space combined in Las Vegas and Reno, Nevada, and in New Haven, Connecticut. The markets are part of Stord’s six-node first-party fulfillment network, which also includes Atlanta, Chicago and Dallas. Combined with more than 1,000 partner facilities, Stord is able to reach 99% of U.S. consumers in two days or less via ground shipping.
In May, Stord announced the closing of a $210 million Series D funding round with a final installment of $120 million. The first part of the round, $90 million, was announced in September 2021. The May funding was led by Franklin Templeton. The entire Series D included participation from new investors Sozo Ventures, Strike Capital and 137 Ventures, along with existing investors Kleiner Perkins, Founders Fund, Bond, Susa Ventures, Dynamo Ventures, Lux Capital and Salesforce Ventures.
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