Boxed, a grocery delivery website that bills itself as “Costco for millennials,” is now bringing the liquor store to your doorstep.
The New York-based e-commerce company delivers bulk nonperishable grocery items such as laundry detergent, pet supplies and paper goods for free on orders totaling $49 or more. The company, founded in 2013, has distribution centers across the country and does not charge a membership fee like Costco and Amazon Prime.
In recent weeks, Boxed began offering California customers delivery of spirits. The company has been delivering other groceries to the state since 2013. Liquor delivery includes options such as CÎROC ultra-premium vodka, Tanqueray gin, Crown Royal Blended Canadian Whisky, Ketel One and Smirnoff No. 21.
The company said it keeps prices on bulk items competitive because it ships all products bought by customers in one box, avoiding multiple deliveries of items from different companies or manufacturers.
Since launching in a New Jersey garage in 2013, Boxed has grown into a $100 million a year business. Its website sells anywhere from 1,600 to 1,700 bulk items that range from a six-pack of disinfectant wipes ($15.99) to a 40-count package of Frito-Lay chips ($12.59).
The company’s main customers are offices and schools. But with older millennials starting families, Boxed is seeing a surge of interest from that age group because they are moving out of cities and into suburbs, company spokesman David Taft said.
Gen Y is also attracted to convenience shopping having grown up “shopping on smartphones,” and other mobile devices, Taft said.
“They are not only right for us, they have space to store items,” he said.
Gen Y is not married to national brands, also making them a model customer for Boxed, which is seeing sales growth for its less expensive private label goods dubbed Prince and Spring. The line of 70 items — including snacks, batteries and paper products — represents 20 percent of the company’s total sales, Taft said.
Boxed expects to add delivery of spirits next to Massachusetts, Florida and Texas. Boxed primarily sells nonperishable goods in most markets including California. However, the company does offer some perishable items New Jersey, New York, Boston and Dallas.
If an order total falls below $49, Boxed will charge roughly $6.99 per box. A majority of orders are delivered in two days or less.
On Jan. 12, Reuters said Kroger Co. is looking to buy the online wholesaler, citing sources. “The potential deal, which arose as the New York-based startup was seeking funding, likely values Boxed at between $325 million and $500 million, said the person, who spoke on condition of anonymity,” Reuters said.
