ISLANDIA, N.Y., June 12, 2018 /PRNewswire/ -- Pharmapacks, a
leading e-commerce company with a proprietary technology platform
that empowers brands to reach millions of consumers with a complete
and cost-effective logistics, fulfillment, marketing and sales
solution, today announced it has raised $32.5 million by selling a minority stake at an
undisclosed valuation. The strategic round was led by multinational
CPG company RB (LSE: RB) with additional investments from
McKesson Ventures, Sealed Air (NYSE:SEE) and The Emerson Group.
Pharmapacks sells both direct-to-consumer through leading online
marketplaces including Amazon, Walmart.com, and eBay among others,
as well as on Pharmapacks.com. In addition to selling well-known
everyday consumer goods, Pharmapacks serves as a "launch pad" for
emerging brands by giving carefully selected new Millennial and
Generation Z brands access to the Pharmapacks e-commerce platform
and consumer base. This enables brands to focus on product research
and development, while Pharmapacks strategically sets competitive
price points and builds a connection between the consumer and the
brand.
"We are excited to see Pharmapacks growing at a rapid pace,
especially in an ecosystem monopolized by big e-commerce players,"
said Andrew Vagenas, CEO of
Pharmapacks. "The fundraising, together with the associated
partnerships, will enable us to scale operations both domestically
and internationally as well as serve our customers in an even more
efficient and cost-effective manner, while expanding the number of
brands we can support with our unique logistics / e-distribution
capabilities."
Pharmapacks will use the funding to grow its 350 person team by
20 percent and scale its current 140,000 square foot warehouse in
Islandia, New York. Additionally,
the funding will enable Pharmapacks to drive its profitability by
advancing its automated technology and to expand its inventory
levels and delivery reach from the U.S. and Canada to Europe, Asia
and beyond.
"With ecommerce becoming a leading driver of growth for our
brands like Enfamil, Lysol, Mucinex and Airborne, we are excited to
partner and invest with Pharmapacks," said Nitish Kapoor, EVP, North America, RB. "We believe that this
partnership will help both companies serve our online shoppers
better and grow at an even faster pace."
Unlike many third-party retailers, Pharmapacks has an in-house
technology team dedicated to building automated assistance tools,
which are an integral part of the company's streamlined process and
scaling success. Pharmapacks also has a partnership with Sealed
Air, whose I-Pack® system uses laser technology to measure the
contents of a package then custom fits each box to that size,
removing excess air and wasted space. This drastically cuts down on
shipping expenses and has enabled Pharmapacks to expand throughput,
giving consumers a less than 24-hour turnaround time for order
deployment.
"In addition to enhancing the consumer experience upon delivery,
Sealed Air and Pharmapacks are having a positive impact on the
environment by eliminating excess packaging waste, and nearly
eliminating the risk of damage during transit," said Ken Chrisman, President of Sealed Air's Product
Care division. "Pharmapacks shares our commitment to use technology
and data to solve fulfillment complexities. Through the upcoming
expansion, we will continue to work with Pharmapacks to provide
reliable and sustainable packaging solutions that address today's
social and environmental challenges."
"Pharmapacks is optimizing the direct-to-consumer channel on
behalf of health care brands making the buying process more
convenient and price effective for both the consumer and their
supplier partners," said Tom
Rodgers, SVP and Managing Director of McKesson
Ventures. "With this infusion of cash, we are excited to see
the operations scale what is already an industry leading
marketplace, and continue to build out a competitive platform that
complements a brand's omnichannel strategy."
"The Emerson Group is pleased to partner with Pharmapacks. With
a shared commitment to excellence in providing our clients
industry-leading capabilities and cutting-edge logistics
technology, we can deliver the efficiency that is so vital to
success in these challenging retail times," said Scott Emerson, CEO of The Emerson Group. "Our
alignment with Pharmapacks will help us deliver increased consumer
exposure to our client brands resulting in the brand growth which
is the core of our corporate mission."
Pharmapacks was founded seven years ago in a Bronx, NY based mom-and-pop retail pharmacy.
After opening its first warehouse in Queens, Managing Members Andrew Vagenas,
Adam Berkowitz, Brad Tramunti,
James Mastronardi and Jonathan Webb enhanced the businesses by
building e-commerce, logistics and fulfillment software meant to be
easily integrated into partners' existing sales platforms including
Amazon, Walmart.com and eBay. Now the company's catalog consists of
28,000 unique items and processes and ships over 30,000 orders per
day to all 50 states in the U.S. and Canada.
About Pharmapacks
Pharmapacks is a leading e-commerce
tech company that empowers brands with a complete and
cost-effective logistics, fulfillment, marketing and sales
solution. It offers a robust catalog of health, beauty, personal
care and household products sold across top online marketplaces as
well as directly to consumers on pharmapacks.com. In addition to
being one of Amazon's largest third-party retailers, it maintains a
100 percent customer satisfaction rating. For more information,
visit www.pharmapacks.com.
About RB
RB is the global leading consumer health,
hygiene and home company. Driven by a purpose to build healthier
lives and happier homes, RB has operations in over 60 countries.
From the foundations of wellness and infant nutrition, to the
fundamentals of a hygienic home, our global brands help people live
healthier, happier lives. RB has world leading Powerbrands which
include household names such as Enfamil, Nutramigen, Mucinex,
Durex, Clearasil, Lysol, Finish, Woolite and Air Wick. RB's unique
culture is at the heart of its success. Its drive to achieve,
passion to outperform and commitment to quality and scientific
excellence are manifested in the work of over 40,000 RB employees
worldwide. Visit www.rb.com to learn more.
About McKesson Ventures
McKesson Ventures is the
venture capital arm of McKesson Corporation (NYSE: MCK)
specializing in early and growth stage companies. McKesson Ventures
targets companies that both catalyze and benefit from the key
changes taking place in the U.S. health care landscape. McKesson
Corporation, currently ranked 6th on the FORTUNE 500, is a health
care services and information technology company dedicated to
making the business of health care run better. We work with payers,
hospitals, physician offices, pharmacies, pharmaceutical companies,
and others across the spectrum of care to build healthier
organizations that help deliver better care to patients in every
setting. Visit www.mckessonventures.com to learn more.
About Sealed Air
Sealed Air Corporation is a
knowledge-based company focused on packaging solutions that help
our customers achieve their sustainability goals in the face of
today's biggest social and environmental challenges. Our portfolio
of widely recognized brands, including Cryovac® brand food
packaging solutions and Bubble Wrap® brand cushioning, enable a
safer and less wasteful food supply chain and protect valuable
goods shipped around the world. Sealed Air generated $4.5 billion in sales in 2017 and has
approximately 15,000 employees who serve customers in 122
countries. To learn more, visit www.sealedair.com.
About The Emerson Group
The Emerson Group has been
facilitating transition to the changing consumer retail economy for
over 20 years. With a field sales infrastructure of 10 regional
offices, Emerson manages CPG brands in excess of $3.8 billion, and holds equity positions with
small and medium-size brands. It also operates internationally,
providing partners in the European, South American and Asian
Pacific regions with the expertise and infrastructure necessary to
successfully operate in the U.S. market. The company offers clients
unparalleled retail relationships, advanced turnkey logistics,
comprehensive marketplace analytics, and access to equity markets.
Emerson Logistics, the #5 HBC supplier to the trade, is an
efficient turnkey logistics solution, delivering on-time and
complete shipments, single purchase orders for multiple products,
single point of contact for multiple vendors, and reduced
processing costs. Emerson Marketing partners with industry-leading
experts to leverage data and shopper insights for clients, with
up-to-the-minute category and brand information. The Emerson
organization's resources and expertise has been expanded into
Canada with our recent merger with
McCaughey Consumer Products Management, Inc., a leading Canadian
sales organization offering national account management, brand
management, inventory management, accounts receivable and quality
control. To learn more visit www.emersongroup.com.
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SOURCE Pharmapacks