Monday, May 12, 2008

Grocery ad network fuels big growth in MyWebGrocer

By Christopher Calnan

MyWebGrocer LLC, a maker of online shopping software for grocery chains, has appointed its first operations executive as it navigates the largest growth spurt in its history -- fueled in part by a grocery advertising network the company launched last fall.

The Colchester, Vt.-based company, founded in 1999, has named former General Electric Healthcare information technology executive Tim Kenney as its first COO, to deal with the firm's boost in business, which has doubled so far this year compared with 2007.

Kenney will work with CEO Rich Tarrant, who had been handling operations until now.

MyWebGrocer provides IT functions to more than 80 national grocery retailers. In addition to consumer demand for online services -- especially online shopping -- Tarrant said the company's six-month-old advertising network is driving the sharp increase. The grocery ad network is now used by 3,500 stores and attracts 3 million unique visitors per month, he said.

MyWebGrocer doesn't disclose specific revenue figures, but Tarrant said annual revenue was less than $10 million last year. The company employs 48 employees, up from 34 last year.

This week, New Jersey-based food distributor White Rose Inc. enlisted MyWebGrocer's online tools to upgrade its websites. Last month, MyWebGrocer opened an Atlanta office and signed Kansas City, Kan.-based Ball's Food Stores Inc. as a customer. Last year, the firm opened a new office in Charlotte, N.C., after signing as customers two North Carolina-based chains: Harris Teeter Inc. and Lowe's Food Stores Inc.

New England's dominant online grocer, Peapod LLC, which shares its parent company with Quincy-based Stop & Shop Cos. Inc., reported filling its 10 millionth order last year.