XPO Logistics (Formerly Segmentz) Founder and Grove Inc (GRVI) CEO Brings Deep Experience in Growing Companies

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

As a serial entrepreneur, Allan Marshall knows what it takes to launch a company and steer it through its initial growth period while implementing funding strategies to propel it forward.

Marshall, CEO of Grove Inc. GRVI, has done it with several companies in the transportation and logistics arena that have gone on to become wildly successful. 

Take XPO Logistics Inc. XPO. Marshall founded Segmentz Inc. (now known as XPO) in November 2000 and served as the CEO, successfully acquiring 5 logistic companies and raising more than $25 million in capital to create the infrastructure and business foundation that is now XPO Logistics.

Today, XPO is the second-largest freight broker in the world. It has about 44,000 employees in 744 locations across 18 countries.

Over the course of his career, Marshall learned how to better determine which startups are likely to succeed. One such opportunity that presented itself was Henderson, Nevada-based Grove, which Marshall joined in January of 2020 and took public in June of 2021. 

Marshall has taken what he learned in the transportation and logistics industry and applied it to the CBD market. He saw an opportunity for Grove, which makes its own line of hemp-derived CBD products, to create a private label (as well as in house brands) business that has a more automated process and provides faster turn-around times to its clients than many of its competitors — such as cbdMD Inc YCBD, Cara Therapeutics Inc CARA, and Sundial Growers Inc SNDL — can. Today, Grove has more than 80 large, private-label clients.

“Among being an advocate for hemp-based products, I saw a critical opportunity in the industry. I spoke with multiple business owners in the space and there was a common theme that no one could find a reputable company to outsource production to. Turnaround times were often months, prices were high, and quality wasn’t consistent,” Marshall said. “And that’s not feasible for any company competing for their share in the market. It was evident there was a void to fill. ”

While Grove is focused on hemp-derived CBD products, it is interested in pursuing opportunities in the marijuana industry when it becomes legal at the federal level. The company is also currently exploring international opportunities in legal markets.

Meanwhile, Grove has stayed on its growth track since its initial public offering with the acquisition of VitaMedica, an online seller of supplements, which has enabled it to enter the vitamin and nutraceutical market with a bang. 

VitaMedica’s $10 million in product sales over the past several years adds to Grove’s rapidly expanding revenue and year-over-year profits. The acquisition, which combines VitaMedica’s scientific approach to product creation with Grove’s nationwide distribution channels, should drive growth and new opportunities. It also provides a way to cross-sell Grove and VitaMedical products to both companies’ existing customers.

“VitaMedica marks the beginning of Grove entering multiple industries. Our success with private label clients and in-house brands featuring hemp/CBD has allowed us to grow rapidly and become profitable in just 3 years. Now, we look to acquire and scale into other markets by applying the same principles that have made us successful here (hemp/CBD),” Marshall said. 

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.