An affiliate of Premium Brands Inc. has raised about $20 million in equity and debt financing to expand into the direct-to-consumer food delivery business.
Earlier this year, Goodlife Brands Inc., formerly McSweeney’s, bought the company that bought Schwan’s Canada, the business known for its yellow trucks that delivered ice cream and other food to home shoppers.
The acquisition provided Goodlife with 280 refrigerated trucks, a list of more than 400,000 customers and 27 distribution facilities across Western Canada and Ontario.
George Paleologou, chief financial officer of Premium Brands, will resign to become chief executive officer of Goodlife Brands in October, sharing executive responsibilities with president Guy Peckham.
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“We feel there is a great need for that type of service,” Paleologou said.
“It is not a grocery delivery service. It is delivering differentiated, high-quality meal solutions directly to homes.
Products will include meat and poultry products, frozen vegetables, ice cream and desserts.
This business will add to the company’s other focus of supplying convenience stores.
Paleologou said the home delivery business is now test running on 90 routes in rural Alberta, Manitoba and Saskatchewan. It will next expand to prairie cities and then to British Columbia and Ontario.
