Thrive Market makes History with SNAP EBT Acceptance

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SNAP, also known as the Supplemental Nutrition Assistance Program at the USDA, provides food benefits to low-income families to supplement their grocery budget, so they can afford the nutritious food essential to health and well-being.

In addition to being able to purchase groceries in-store or at farmers markets, SNAP benefits can also be used via online purchasing and delivery from existing brick-and-mortar retailers, such as Amazon/Whole Foods Market.

While the current online options have helped address food deserts to some degree, they have by no means solved it.

Believing that it could contribute to the solution, especially as a source of organic and healthy offerings, online grocer Thrive Market has spent nearly the last decade seeking USDA approval to be a part of SNAP. And just the other day, its unflinching level of persistence and commitment finally paid off.

The company has become the first-ever, online-only retailer to receive USDA approval to accept SNAP EBT, the electronic benefit transfer system to purchase eligible food items using a specialized debit card.

“Thrive Market’s SNAP EBT acceptance is a groundbreaking move in making healthy groceries more accessible and affordable,” says Nick Green, Thrive Market co-founder and CEO. “Our acceptance will redefine how Americans can access healthy options, irrespective of their geography, with deliveries directly to their door.”

As of 2022, according to the Pew Research Center, 41.2 million people in 21.6 million households received monthly SNAP benefits to purchase groceries.

So, for the 17.1 million people living in food deserts or who may be hours away from the nearest SNAP-approved grocery store, their options for healthy and organic food have been severely limited, if not completely out of reach. Or, they simply may have been unaware of whatever options did exist.

The USDA’s approval of Thrive Market, which currently boasts 1.4 million members, should help to change a great deal of that.

Not only does the company’s delivery footprint span the contiguous 48 states, but with nearly 85% of people who live at or below the poverty line having internet access, these individuals will now be able to choose from 4,000+ SNAP-eligible SKUs at Thrive Market, many of which are organic and Non-GMO.

Since 2015, the time when the company began conversations with the USDA to gain approval for SNAP EBT, it has hardly been sitting idle waiting for this moment to arrive.

Amid the extensive back-and-forth with government regulators and its 300K+ signature campaign advocating for a pilot program, the online retailer has been very active in helping people in need, especially during the pandemic. It has since raised more than $13M for its Food Equality Fund to help support the country’s most impacted families and communities.

WHAT IT MEANS

The reverberations of Thrive Market’s approval into this program will not only be felt at the company but throughout the entire organic industry and nation.

Thrive Market will soon be able to tap into a potential customer base of 21.6 million SNAP households, all of whom have a certain amount of government dollars to spend on groceries each month, and any SNAP EBT cardholder will have access to a free Thrive Market membership.

As such, it should result in a significantly increased demand for both Thrive Market private label organic products, in addition to other organic brands sold on the company’s platform. With Thrive Market having opened the door for online-only retailers at the USDA for this SNAP EBT program, it is reasonable to assume that other sustainable, online-only grocers will join as well, which should also serve as a major tailwind for organic.

More SNAP recipients buying organic, whether at Thrive Market or at a different online retailer, is a win for the entire organic ecosystem, such as farmers, distributors, brands and service providers. These are government subsidies that have a trickle-down effect and will benefit all parts of the supply chain.

Yet, the big winner in all of this are the SNAP EBT recipients themselves. Everyone should be able to eat to organic, pesticide-free and Non-GMO food, and this announcement should help facilitate that in a very meaningful way.

In terms of growing the organic category within this program, one challenge that Thrive Market does face is education.

Consumers — from all socio-economic backgrounds — still do not have a good understanding of what organic means. According to the 2023 U.S. Grocery Shopping Trends report from FMI, shoppers continue to seek out “natural,” “no artificial ingredients” and “no preservatives” claims more than “certified organic.”

“Educating our members about the benefits of certified organic products and making it easy to find these options on Thrive Market is a priority for us,” said Jeremiah McElwee, chief merchandising officer for the company. “In addition to offering organic products, we are committed to continuing to be an informational resource for our members via content on our blog, social channels, and through expanded outreach and educational efforts in the future.”

Making organic affordable and accessible to all citizens, without compromising standards, is the ultimate goal for our industry.

Thrive Market’s announcement is an important step toward accomplishing this.

Beginning on February 26th, SNAP EBT recipients can sign up for their new Thrive Market membership, enter their EBT card number and PIN, and instantly start shopping.

With gratitude, Max Goldberg, Founder