NEW YORK, United States — British meal kit provider HelloFresh has launched a retail line in the US targeting complimentary audiences, as more meal kit services take to supermarket aisles to boost profits.
The company’s entry into US retail follows its recent acquisition of Green Chef, a Boulder-based meal kit brand that offers USDA-certified organic ingredients and addresses gluten-free, Paleo and Keto dietary plans.
Launching in over 500 stores in Ahold Delhaize’s Giant Food and Stop & Shop locations, HelloFresh also has plans to increase its availability with additional retailers throughout the year, including revitalising the grab and go aisles for smaller format retail chains. The brand follows in the footsteps of US competitors Plated, which can be found in Albertsons and Safeway and Blue Apron, which is stocked in Costco.
According to HelloFresh, the volume of partnerships with grocers is a testament to the two years it has been carefully crafting its everyday meal solution for retail. The company has been conducting global pilot programs to optimise its retail brand for taste and freshness, but also with a focus on how to make convenient meal kits successful for grocers.
“The addition of retail, a channel well-placed to benefit from the unique data, brand and infrastructure assets we have built out over the years, allows us to better address the everyday needs for even more customers, adding what we view as a highly complementary customer segment,” said Tobias Hartmann, President for North America at HelloFresh.
“How we’ve been embraced by retail brands shows the quality product line HelloFresh has brought to market,” he added.
In addition to expanding its distribution network from five to 11 facilities to minimize travel time and maintain ingredient quality for retailers, HelloFresh has also been working on unique packaging to optimise shelf space and drive profitable revenue streams for its retail partners. The result, it argues, are fresh and convenient dinner options that retail brands have chosen as an essential part to modernising their customer experience. Current recipe options include Peppercorn Steak and Mediterranean Style Chicken.
Since launching in the US in 2013 HelloFresh has amassed 1.2 million active customers and delivered 26.5 million meals over the course of Q1 2018, alone. However, getting its products into grocery stores will provide the brand with access to a new audience, as well as boost its presence beyond the digital realm.
With only 19% of Americans having actually tried a meal-kit service, it’s a strategy that could help to win over potential customers who want to try meal kits without the constraints of a subscription.