Instacart Expands Carrot Ads to Food Distributors, Operators, and Manufacturers

Instacart Expands Carrot Ads Beyond Grocery Retail

Instacart is taking a bold step with its Carrot Ads Expansion, reaching beyond traditional grocery stores. The company has partnered with Cut+Dry, an ecommerce platform designed for food distributors, operators, and manufacturers. This partnership integrates Instacart’s Carrot Ads into the Cut+Dry platform, giving foodservice advertisers new ways to connect with buyers and increase revenue.

How Carrot Ads Expansion Benefits Food Manufacturers

According to Instacart, this initiative will help food manufacturers tackle challenges in reaching end buyers and influencing purchase decisions. Mani Kulasooriya, Co-founder and CEO of Cut+Dry, emphasized how brands have struggled to communicate product benefits at the point of sale. By leveraging Carrot Ads, manufacturers can now improve their visibility and connect with a broader audience.

A Growing Digital Advertising Opportunity

Originally launched in 2023, Carrot Ads enabled retailers to monetize their ecommerce platforms through digital advertising. Nearly 220 retail banners have already adopted this technology. Now, Instacart plans to extend this success to foodservice, integrating Carrot Ads Expansion into Cut+Dry over the next few quarters. This move is expected to create one of the largest digital advertising opportunities in the foodservice sector.

Unlocking New Revenue Streams in Foodservice

Foodservice distributors have largely missed out on digital advertising growth. However, this partnership changes the landscape by directly connecting brands with buyers. According to Andrew Nodes, VP and GM of Instacart Business & Supply Chain, this expansion will benefit multiple stakeholders:

• Operators gain access to product details, recipes, and menu ideas to make informed purchasing decisions.
• Distributors generate new revenue through digital advertising.
• Food manufacturers expand their reach, enhancing brand visibility in foodservice sales.

Instacart’s Vision for the Future

With this strategic move, Instacart is positioning itself as a major player in digital advertising beyond grocery retail. The Carrot Ads Expansion marks a significant innovation in foodservice, offering new growth opportunities for brands and distributors alike.

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