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HumanCo Investments Calls for Strategic Review at Grove Collaborative

In an open letter dated July 8, 2025, HumanCo Investments (HCI), which holds over 5% of the shares of Grove Collaborative Holdings, Inc. (NYSE: GROV), urged the company’s Board of Directors to conduct a thorough exploration of strategic options. HCI believes that an assessment of potential partnerships, acquisitions, or transformative mergers is essential for unlocking the true value of Grove's platform—one positioned at the forefront of the clean-living trend.

Grove Collaborative: A Leader in Non-Toxic Marketplace

Grove Collaborative has established itself as a pioneer in the online, non-toxic marketplace for household and personal care products. Over the past decade, it has cultivated a substantial customer base and gained a competitive edge due to its commitment to sustainability and product safety. The firm has reported over 700,000 active customers, who demonstrate loyalty through recurrent purchases and subscriptions, contributing to its reputation as a trustworthy source for clean living.

Despite these positive metrics, HumanCo highlights a troubling issue: Grove is currently undervalued in public markets. At present, Grove’s enterprise value is about $75 million, representing a significant drop from its initial market valuation of $1.5 billion. HCI argues that this disparity stems from a lack of visibility in the investor community, due to the company's small market capitalization and limited public interest. As a result, they contend that Grove's share price is far below its potential.

The Case for Strategic Alternatives

HCI’s letter points out that the company must explore all strategic options thoroughly, including potential mergers with larger organizations or partnerships that could offer the operational support needed to invest in growth. Specifically, HCI believes that integrated collaboration with a financially robust partner could lead to a valuation multiple between 0.70x and 0.90x of Grove's estimated 2025 revenue, which translates to a significant premium on its current stock price.

The letter asserts that the growing consumer demand for safer, cleaner products presents an unprecedented opportunity for Grove. With changing consumer behaviors post-pandemic, families are increasingly pursuing non-toxic options for everyday use, a trend that Grove is well-positioned to leverage.

HCI’s call to action emphasizes not only the necessity of seeking strategic partnerships but also the urgent need for consumer education on non-toxic products. They envision Grove becoming a trusted authority in the marketplace, leading consumers through the complexities of eco-friendly shopping. By enhancing its marketing efforts and countering the competitive pressure from platforms like Amazon, Grove can assert its position as a reliable destination for those seeking safe alternatives.

Challenges and Opportunities Ahead

The road ahead for Grove is not without its hurdles. Its marketing expenditures have drastically decreased—by 91%—severely limiting growth opportunities during a time when brand visibility is critical. Furthermore, operational overhead remains high, detracting from potential savings that could be redirected towards strategic initiatives.

However, HCI remains optimistic regarding Grove’s path forward. By advocating for transformative change, they suggest that Grove could pivot from a cost-cutting approach to a growth-centric strategy, which includes increasing customer outreach and forging strategic alliances worth pursuing. The correct partners or investors could be instrumental in helping Grove realize its potential while fostering a nurturing environment for innovation and community engagement.

Conclusion: A Crucial Decision Point

As Grove Collaborative approaches a pivotal moment, HCI's passionate plea to the Board of Directors focuses on maximizing shareholder value by pursuing strategic alternatives.

In a rapidly evolving market hungry for clean products, Grove has a distinct chance to redefine itself as a leader in non-toxic living. By embracing the transformative potential of strategic partnerships and investment, Grove can ensure its sustained relevance and continued growth in the health-conscious consumer arena.

HCI closes its letter with a request for the Board to establish a Strategic Review Committee to explore and assess options diligently, underlining the urgency of acting swiftly to better position Grove in a competitive landscape. The time for decisive action is now - the question remains if Grove will seize the opportunity to lead the clean-living mission or risk disappearing into the marketplace noise.