An online grocer offering customers discounted prices on surplus inventory from wholesalers and distributors is set to launch in the UK next month.
Swedish operator Motatos says it will give Brits the opportunity to buy “well-known products that would otherwise risk ending up in landfill” due to changes in packaging, seasonal changes or short best before dates.
The company was founded in 2014 in Sweden – where it is known as Matsmart – and later expanded into Denmark and Finland. It launched operations in Germany in 2020.
Motatos says ahead of its June launch in the UK it has established partnerships with several distributors including Wholegood and Pricecheck.
This month it announced the appointment of Christabel Biella as UK country manager. Biella joins from Farmdrop – which ceased trading in December after collapsing into administration – where she was supply chain director. She has previously served in merchandising and purchasing roles at House of Fraser, furniture brand Swoon, and high street fashion chain TK Maxx.
“UK shoppers are incredibly passionate about sustainability but they need easy and cost-effective ways to make sustainable choices that often come with a hefty price tag,” Biella said. “That is why I’m so excited to join Motatos, especially at this point in its development following incredible success in other European markets.”
Motatos UK buyer Andrew Jeeves has also joined from Farmdrop.
It is understood, as in other regions, Motatos’ offering will be solely ambient goods, but with categories including large pack, beverage, snacks, household, pets and beauty. Deliveries are made by third party logistics companies, typically taking between one and three working days.
Delivery fees are based on the number of boxes needed to package the order, with different order value thresholds offering increasing numbers of ‘free’ delivered boxes, plus additional fees if the order requires additional boxes.
In Sweden, Motatos last month launched an own-label line called Saved by Motatos, produced in part using “raw materials from food production”. The range includes spices, pestos, soups, spreads and non-alcoholic beer. A cake mix product contains “chocolate used to ‘clean’ the machines between the production of white and dark chocolate”. The company also has a seperate ‘by Motatos’ range of pastas and oils.
Motatos joins several other redistribution supermarkets in the UK market. Most operate as charities, but some, such as Company Shop and online-only retailer Approved Food, are run as commercial enterprises.
The discounts offered by redistribution supermarkets and organisations have offered a lifeline for many British families during the cost of living crisis. Research this month by the Food Foundation shows a 57% jump in the number of families who said they had gone without food or could not access it compared to three months ago, which the foundation called a “catastrophic” rise.
In a post to potential wholesale and supplier partners, Jeeves wrote that: “We work with all types of surplus stock or waste prevention opportunities in your supply chain including products nearing end of life, products with expired packaging and surplus materials.”
The company has raised €95m in capital from outside investors since it was founded, and says it has a revenue run rate of €100m.
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