FDBusiness.com

Nestlé Enters Online Prepared Meals Market in the US

 Breaking News
  • Parmalat Acquires Canadian Natural Cheese Division of Kraft Heinz For €1.1 Billion Parmalat, the Italian dairy group, is acquiring Kraft Heinz Canada’s division that produces and markets Kraft’s natural cheese products, mainly under the Cracker Barrel, P’tit Quebec and aMOOza brands, for C$1.62 billion (€1.1 billion). Net revenue generated by the business being acquired amounted to about C$560 million (€374 million) in 2017. The acquired business includes [...]...
  • Lantmännen Unibake Expands in Australia The international bakery group Lantmännen Unibake has signed an agreement to acquire the Australian pastry manufacturer Bakery du Jour. The acquisition is an important step to expand Lantmännen Unibake’s global footprint. Family-owned Bakery du Jour was founded more than 20 years ago and is a leading supplier of premium pastry products to major Australian retailers as [...]...
  • Leading Global Online Grocery Markets to Create a $227 Billion Growth Opportunity by 2023 Ten leading global online grocery markets are predicted to experience combined growth of $227 billion, at an annual rate of 20%, by 2023, according to new figures unveiled by IGD. As the global leader in grocery eCommerce, China will grow at a 31% CAGR over the next five years, taking market share from 3.8% to 11.2%. [...]...
  • Agr’s New Multi-head Coating Measurement System Performs Body and Finish Coating Measurements in One Operation Agr International recently announced the introduction of the Combined Coating Measurement System (CCMS) for measuring metallic coatings on both the finish and body regions of glass containers. This totally new device provides operators with a one-stop, single operation testing station for measuring tin oxide coatings applied to the container during the production process. This system utilizes [...]...
  • PepsiCo to Acquire Pipers Crisps PepsiCo intends to acquire premium crisps brand Pipers, subject to approval from the UK Competition and Markets Authority. PepsiCo plans to accelerate the growth of the Pipers business in the UK and will continue to develop the export of its products. The kettle-cooked, gourmet crisp brand will complement PepsiCo’s existing savoury snacks portfolio, with Pipers’ award-winning [...]...

Nestlé Enters Online Prepared Meals Market in the US

Nestlé Enters Online Prepared Meals Market in the US
June 20
12:29 2017

Nestlé has acquired a minority interest in Freshly, a leading provider of Direct-to-Consumer (DTC) healthy prepared meals, which currently supplies consumers in 28 states in the US with weekly shipments of meals. As the lead investor in the $77 million round of new funding just announced by Freshly, Nestle is entering an online prepared meals market that is currently $10 billion in size in the US and expected to grow at very attractive rates.

The investment by Nestlé will help to fund Freshly’s construction of a new East Coast kitchen and distribution centre in 2018, as it prepares to expand to nationwide service. Headquartered in New York with operations in Phoenix, Freshly was founded in 2015 and currently employs 400, with plans to hire additional employees over the next 12 months.

Nestlé USA Chairman and CEO Paul Grimwood says: “While most food choices are still made in supermarkets, it’s clear that consumers are responding to a growing universe of direct-to-consumer options, made possible through innovation. Acquiring a position in Freshly not only gives us access to this growth market, but it also brings reciprocal benefits for both companies. Nestlé will gain visibility into Freshly’s advanced analytics and its highly effective distribution network and Freshly will benefit from our R&D, nutrition and sourcing expertise.”

“Freshly is directly aligned with Nestlé’s strategic focus on finding new avenues to deliver delicious, nutritious meals to consumers in a way that fits their busy lives,” he adds. “The company was founded by time-constrained professionals who did not have time to cook, but wanted to eat healthy meals. Two years later, their goal to offer heat-and-serve meals has become a successful business that reflects America’s changing eating habits.”

With a 60,000 sq ft facility in Phoenix, Freshly currently can ship to approximately 40% of consumers. Upon completion of a new facility in Savage, Maryland, Nestlé estimates that Freshly will be able to serve about 93% of the US population with prepared meals that can be heated in two-three minutes.

Nestlé expects to lend its expertise to Freshly in sourcing, food preparation and food safety, packaging and distribution, and advertising and marketing.

Nestlé in the US consists of eight main businesses: Nestlé USA, Nestlé Waters North America, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Health Science, Nestlé Skin Health and Nestlé Purina PetCare Company. The United States is Nestlé’s largest market with combined product sales totalling more than $27 billion in 2016.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 21, 2018expoSE European Asparagus and Strawberry Fair
  • November 27, 2018Health Ingredients Europe
  • November 28, 2018FOOD & LIFE
  • December 3, 2018P&P 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements