Instacart brings Carrot Ads to food distributors, operators, manufacturers

Instacart is expanding its advertising reach beyond grocery stores through a new partnership with Cut+Dry, an ecommerce platform for distributors, operators, and manufacturers, the last-mile delivery service announced Monday. 

The new partnership integrates Instacart’s Carrot Ads into the Cut+Dry platform, enabling advertisers in the foodservice industry to “reach buyers while unlocking new revenue opportunities for distributors and operators …” the San Francisco-based delivery and tech company said in a press release. 

“Food manufacturers have long struggled to connect with end buyers and influence purchasing decisions at the point of sale,” Cut+Dry Co-founder and CEO Mani Kulasooriya said in the press release. “Without a platform to share their brand story and product benefits, brands have been limited in their reach.”

The Carrot Ad technology launched in 2023, enabling retail banners to offer ads on their ecommerce sites. Since its inception, the Carrot Ads have attracted nearly 220 retailer banners, according to Instacart. 

Instacart said the Carrot Ads will come available to brands on Cut+Dry over the next few quarters. 

Kulasooriya said foodservice distributors have been left out of the rapid growth in digital advertising and that the new partnership establishes “one of the largest digital advertising opportunities in the industry,” connecting brands directly with buyers and creating new revenue streams for distributors. 

“Our partnership will not only open up new opportunities for our brand partners advertising on Instacart, but also deliver value to stakeholders across the foodservice industry, including operators, distributors, and food manufacturers,” Andrew Nodes, VP and GM, Instacart Business & Supply Chain, said in the press release. “Operators will get access to detailed product information, recipes, and menu ideas to make informed choices. 

“Distributors will have the opportunity to unlock additional revenue through digital advertising opportunities. Food manufacturers will gain unmatched reach to operators nationwide, boosting brand visibility and influence in foodservice sales.”