Nestlé acquires the Freshly ready meals service to compete with HelloFresh, Blue Apron

One of the largest packaged food companies in the world has just grown.

Nestlé struck a deal on Friday to acquire Freshly, a US-based meal delivery service, for $ 950 million.

Nestlé could also pay up to $ 550 million more, depending on whether Freshly meets certain growth targets, according to the announcement.

The company, which provides healthy, ready-to-eat meals that customers only need to reheat to enjoy, is expected to have $ 430 million in revenue this year.

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“This decision combines Nestlé’s deep understanding of what people eat at home and how they eat at home, and world-class research and development capabilities with the Consumer Analytics Platform highly specialized from Freshly, ”says the ad.

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Freshly was founded in 2015 and now ships more than one million meals a week to people in 48 states, according to the announcement.

In 2017, Nestlé bought a 16% stake in Freshly “as part of a strategic move to assess and test the growing market,” said Friday’s announcement.

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By acquiring Freshly, Nestlé is positioning itself to compete with meal kit subscriptions such as Blue Apron and HelloFresh, even though Freshly does not require any of the preparations or cooking required by meal kits.

“Consumers are embracing e-commerce and eating at home like never before,” Steve Presley, CEO of Nestlé USA, said in a statement. “This is a development caused by the pandemic but which is perpetuated in the long term.”

“Freshly is an innovative, fast growing food technology start-up, and their addition to the portfolio accelerates our ability to capitalize on the new realities of the US food market,” added Presley.

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In a letter to customers, Freshly founder and CEO Michael Wystrach said the acquisition would not change the company’s meals, pricing and membership.

“Freshly will continue to operate as a stand-alone business to accomplish our core mission of removing barriers to healthy eating with convenient, nutritious and delicious meal solutions, backed by the power of Nestlé to open new doors for food delivery. fresher and faster door, ”Wystrach wrote.

“We will continue to maintain our own high standards and maintain full control over our products,” Wystrach added. “Our meals will not change, and there are no plans to change ingredients or incorporate Nestlé products into freshly prepared meals, but we are excited about the potential opportunities going forward.

Teleprinter	security	Latest	Change	Change%
NSRGY	NESTLÉ SA	112.27	-0.68	-0.60%

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