C-Suite Changes at Grove Collaborative

Grove Collaborative Co-Founder Stuart Landesberg is stepping down as CEO effective Aug. 16, 2023 and will become executive chairman of the board. Jeff Yurcisin, former CEO of direct to consumer brands Zulily and Shopbop, and a long time Amazon executive, has been appointed the company’s new CEO. The c-suite changes are being made to align the company more closely with future growth and market expansion initiatives, the firm announced yesterday.

Landesberg, who co-founded Grove Collaborative in 2012, will continue to oversee strategy, capital markets and corporate development. 

As CEO of Grove, Yurcisin will oversee the company’s next chapter, including drive profitable growth rooted in sustainable product innovation, customer-centricity and market expansion initiatives and identifying new opportunities. He also joins the board of directors.

“When we started Grove Collaborative, our mission was to transform consumer products – creating a brand to reshape categories in all of our homes so they can be a force for human and environmental health,” said Landesberg. “Over the last decade, we have built and scaled a market leading brand in zero plastic and zero plastic waste, a breakthrough for the category, and helped millions of families live healthier and more sustainable lives. I’m proud of the impact of our work on the broader industry and how we, together, create a more sustainable future at a time when change is so urgent. I could not be more excited to welcome Jeff, an experienced, brilliant and customer-centric leader to Grove and as Grove’s next CEO. He will be terrific at the helm, as Grove continues to push towards greater sustainable growth and impact.”

“Grove has built a rare and visionary brand, an exceptional and loyal customer base, and a true right to win in the urgent transformation to a sustainable future. I look forward to building on everything the team at Grove has accomplished and I am incredibly energized by the opportunities ahead,” said Yurcisin. “By continuing to improve on our growth initiatives, we will seek to deliver tremendous value for our customers, shareholders and the planet as we reshape the future of sustainable consumer products.”

Board Updates

In being named executive chairman of the board, Landesberg succeeds former Seventh Generation and Burt’s Bees CEO John Replogle, who will serve as the board’s lead independent director.

In its FY23 Q2 earnings release, Grove announced a $10 million investment from Volition Capital. Larry Cheng, managing partner and co-founder of Volition, joined Grove’s board of directors.  At Volition, Cheng focuses on Internet and consumer investing. Cheng currently sits on the boards of many companies including Burst Oral Care, GameStop, Recycle Track Systems, Rounds, Sensible Care, Super73 and US Mobile.

Q2 Financials

Grove also announced financials for its fiscal second quarter ended June 30, 2023. Net revenue was $66.1 million, down 7.6% from the first quarter of 2023, and down 16.6% year-over-year. The company said it was largely due to reductions in advertising spend as it focuses on profitability.

Grove Brand products represented 45.0% of net revenue in the second quarter of 2023, a decrease of 380 basis points quarter-over-quarter and a decrease of 290 basis points year-over-year. The year over year and sequential decreases are due to a decrease in Grove Brands products in existing customer orders as we continue to expand our third-party offering and a decrease in new customer orders, which include more Grove Brand products, the company said. The sequential decline in existing customer share was further impacted by coming off a seasonally high Grove Brands performance in Q1, whereas the year over year decline is due to an expansion to categories with an increased third party presence, including VMS, home decor and storage, said the company.

DTC total orders were 1.0 million, down 11% quarter-over-quarter and 26% year-over-year. The year-over-year and sequential declines are due to lower advertising spend throughout 2022 and 2023 YTD, resulting in fewer new customers and therefore fewer overall orders.

DTC active customers were 1.1 million, down 9% quarter-over-quarter and 28% year-over-year. The year-over-year and sequential declines are due to lower advertising spend resulting in fewer new customers.

DTC net revenue per order was $64.8 in the second quarter of 2023, a record for Grove, up 5% quarter-over-quarter and up 11% year-over-year.

In the second quarter, 67% of Grove Co. product net revenue came from either zero-plastic, re-usable or refillable and zero plastic waste products, determined as meeting the Company’s Beyond Plastic™ standard1, down slightly from 70% in the first quarter of 2023 and the second quarter of 2022.

https://www.happi.com/contents/view_breaking-news/2023-02-14/grove-collaboratives-home-care-brand-grove-co-launches-at-walmart-amazon/