A startup grocery service that provided a pipeline from area farmers and producers to customers in metro Denver has ceased operations after deciding it could no longer make a go of it financially.

PineMelon started business in April 2022, billing itself as a “local-first” online and grocery delivery service. Working out of a 30,000-square-foot warehouse on the north side of Denver, PineMelon featured fruits, vegetables, meat, breads, desserts and prepared meals from clients across the Front Range and on the Western Slope.

PineMelon said suppliers included 400-plus local farmers and makers. The company said its mission was “to build a food system that is better for our environment, builds our community, provides healthier food, and allows local food makers to thrive.”

The online grocer also proved to be an avenue of commerce for area producers once farmers markets closed for the season.

PineMelon CEO Alex Lee said in a statement Friday that the company was grateful to the local farmers, ranchers and producers who had worked with it and to the customers who took a chance “on a whole new way to shop for groceries.”

But despite efforts “to remedy our current financial situation,” PineMelon would halt all operations Sunday, Lee said. “At this time, we do not know if or when we will be able to resume operations.”

PineMelon said it filled orders for pickup Monday and planned to close out by 6 p.m.

Christopher Ford, PineMelion’s chief marketing officer, said in an email that the company tried to develop a sustainable business model that put more money in the hands of local farmers, didn’t require a subscription and didn’t outsource jobs to gig workers.

“Managing the costs associated with these values has proven challenging,” Ford said.

Company officials said PineMelon wasn’t able to sustain the high level of scale needed to make its business model work. PineMelon had 43 full- and part-time employees.

“I think I was one of the first local farmers that they brought on,” said Ryan Ericson, owner of Well Fed Farmstead in Fort Collins.

Ericson grows 100 different varieties of vegetables, fruits, flowers and herbs on about  2.5 acres in the city. He said he made between $500 and $1,000 a week in 2024 by selling his products to PineMelon.

“I don’t really have another wholesale outlet like PineMelon in this area,” Ericson said. “I have a lot of different markets that I sell to, which is very helpful in this case.”

Ericson said he will likely sell more of his products to retail outlets and might go to more farmers markets.

“I thought PineMelon was really innovative,” Ericson said. “They seemed excited about expanding. I’m sad to see them go.”

Updated at May 13, 2025,  at 11:21 a.m. to correct the number of suppliers that PineMelon worked with.

Originally Published: May 13, 2025 at 11:08 AM MDT