GrubMarket Acquires Bay Cities Produce to Expand its Footprint in the Northern California Foodservice Industry

We are excited to announce that we have completed our acquisition of Bay Cities Produce, a trusted foodservice distributor based in San Leandro, California. This acquisition marks a major milestone in expanding our footprint in the Northern California foodservice industry, further solidifying our commitment to modernizing the American food supply chain with innovative technology and strategic partnerships.

Bay Cities Produce was founded in 1947 by Albert Del Masso, a pioneer and leader in the fresh produce processing and foodservice industries. 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. 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 highly respected supplier known for its excellent customer service, strong commitment to transparency and food safety standards, and deep expertise in custom produce processing. In 2006, the company expanded into a 55,000 square foot state-of-the-art facility, significantly enhancing its ability to process fresh products at a high volume.

This acquisition allows GrubMarket 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, COO of Daylight Foods and Vice President of Operations at GrubMarket, and Chris Vlahopouliotis, General Manager of 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. Their efforts resulted in a seamless transition, 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.

“When the Bay Cities Produce opportunity was first presented to us, we knew we had to act quickly to transition the business effectively,” said Keith Brewer, COO of Daylight Foods and Vice President of Operations at GrubMarket. “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.”

Mike Xu, CEO of GrubMarket, added, “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. 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 (SaaS) 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 groundbreaking 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 eCommerce solution; and GrubPay, the company’s digital payments platform specifically designed for the needs of the food supply chain industry.

Please join us in welcoming Bay Cities Produce to the GrubMarket family! We look forward to building on their legacy and working together to shape the future of the Northern California food supply chain.