Brandless

Sharkey and Leffler met while both were living in Mill Valley, California. Sharkey, the founder of iVillage and the former CEO of BabyCenter, had an extensive background in online communities, and Leffler, the founder of several companies, including Yes To, Inc. and Yoobi, had expertise in consumer products.[3] They founded Brandless in 2014 to "set a landing point for a consumers" who sought "quality and transparency, and eschewed brand loyalty and the resulting choice overload familiar to anyone who’s ever stepped into a grocery store aisle."[5]

In mid-2016, Sharkey resigned from her position as CEO of Sherpa Foundry to become CEO of Brandless, with Leffler serving as its chairman.[5] The company raised $16 million in funding led by Redpoint Ventures in November 2016,[9] and at launch had received a total of $50 million in venture capital from New Enterprise Associates, Google Ventures and others.[3]

In 2018 the company announced plans launch a pop-up store in Los Angeles in May.[10] In addition to selling products, Brandless scheduled two weeks of programming from May 1 to 13 in Los Angeles with different panels centered around wellness and nutrition, dubbing the programming as "Pop-Up With Purpose." In addition to the programming the company donated 5,000 meals on behalf of each speaker, 10 meals for every person who visited the pop-up and three meals every time an individual tags the company or used the hashtag #Brandless on social media.[11]

Business model[edit]

Brandless is based in San Francisco, California, and operates an additional facility in Minneapolis, Minnesota. Foods are GMO-free, health and beauty items are cruelty-free, and paper products adhere to sustainable forestry practices.[1] Products' labels consist of only a white box with the product's name and two to five descriptors, such as organic, kosher, or gluten-free.[12] While its product packaging isn’t heavily branded like most traditional brands, Brandless is a brand of its own.[13]

The business model for Brandless begins with all its products being conceived with manufacturing partners.[14] As a result, the company owns, creates and sells all of these goods directly to the consumer,[9] a methodology that eliminates “brand tax”, the markup on most conventional brand-name items that can range from as low as 40% to as high as 370%. With their own production and distribution, Brandless is able to price single items at $3, or multiple items for $3 total.[3][15][16] At checkout, customers receive an "estimated brand tax savings" for their purchases.[6] Additional savings come if customers purchase a B.More membership.[17]

Feeding America[edit]

Sharkey and Leffler built a one-for-one social mission into the core business model; through a partnership with Feeding America, for every order placed, Brandless provides a meal for people in need.[4] Purchases by members of Brandless’ B.More program will result in 2 meals donated to Feeding America.[5]

In an interview with Whole Foods magazine, Sharkey explained that their donations are "one way to help positively impact the 42 million people in this country facing food insecurity, but it's just the start. We want to inspire and empower our community to make a difference."[15]

Awards and Recognition[edit]

In February 2018, Brandless received the Best NewCo of the Year award from NewCo Honors for disrupting retail markets and donating 250,000 meals to Feeding America. The award is given to companies who possess innovative offerings and who stand by a distinct mission in their business.[18]