NEWS COMMENTARY

Nestlé acquires Freshly, provider of fresh-prepared meal delivery services in the U.S, at a valuation of $950 million

Published:
November 03, 2020
Coverage:
Emerging Ecosystems in Agrifood and Health More...
Activities:
Acquisition
Average importance

Since its founding in 2015, Freshly has reportedly grown every year and is now delivering more than a million meals per week across the U.S., with 2020 sales forecasted to be $430 million. There are two plausible reasons for Freshly's success. The first is its focus on prepared meals (rather than meal kits), providing ultimate convenience. The second is its consumer analytics platform and strong distribution network. Nestlé, demonstrating how to adapt to new industry structures, will be sure to take advantage of both aspects. Fellow CPGs should follow suit in finding alternative ways to reach consumers but note that a blockbuster acquisition is not necessary. For example, co-branding products provides a much less risky option.

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