Berkshire Grey Secures $23m Deal For Grocery Picking Robots
Berkshire Grey, a warehouse robotics company and leader in AI-enabled robotic solutions that automate supply chain processes, secured a $23+ million multi-phase order with a global retailer for online same-day grocery fulfillment.
According to the United States Department of Agriculture (USDA), consumers in the US spend around $1.7 trillion annually on food and groceries, and nearly 52% of the US population are expected to be digital grocery buyers by 2022, according to Insider Intelligence.
To meet this rising demand, Berkshire Grey will provide its Intelligent Enterprise Robotics (IER) solution that robotically picks grocery items from inventory and packs the items into customer bags to fill orders that are placed online and via mobile apps. The firm says those robotic solutions can operate either in back-of-store—putting the operation close to current shoppers for rapid pickup and delivery—or in larger, dedicated fulfillment and distribution centers.
“Ordering groceries online became a habit for many during COVID-19. Driven by this and the convenience of online ordering, our customers need rapid fulfillment of online orders done in an efficient way to meet a range of consumer demands — at the same time our customers need to ensure that the right goods are always on the right shelves at the right times in the store,” says Pete Allen, General Manager of Grocery and Convenience at Berkshire Grey. “Berkshire Grey’s IER grocery picking solutions provide the grocery industry with the speed and scalability that customers demand while positioning grocers to boost margins and capitalise on the continued changes in the market.”
Acceleration in business
This new deal comes just weeks before Berkshire Grey plans to become a publicly listed company through its February deal to be acquired by a special purpose acquisition company (SPAC) called Revolution Acceleration Acquisition Corp. The company expects that its stock will begin to trade early in the third quarter of 2021.
As of June 30, 2021, Berkshire Grey has:
- Contracted for approximately 94% of forecasted 2021 revenue.
- Increased total orders since inception to $148 million, up from $114 millon as of December 31, 2020, driven in part by growth in orders in the grocery and parcels verticals.
- Increased backlog to $95 million, up from $70 million as of December 31, 2020.
- Previously disclosed revenue guidance of approximately $59 million for 2021 is unchanged.
- Signed 4 new partnerships to broaden the company’s go-to-market strategy.
- Increased global headcount to approximately 350 employees, executing its global growth plans.
(Images: Berkshire Grey)