Nestlé USA acquires Freshly to enter prepared meals business
04 Nov 2020
Swiss food group Nestle on Friday announced the acquisition of US meal delivery company Freshly in a deal valuing it at $950 million, with further potential payments or “earnouts” of up to $550 million contingent on the successful growth of the business.
Founded in 2015, Freshly delivers a menu of fresh, chef-cooked meals to customers across the country, breaking down the barriers to healthy eating by delivering nutrition and convenience at scale.
The move brings together Nestlé’s deep understanding of what and how people eat at home, and world class research and development capabilities with Freshly’s highly specialised consumer analytics platform and distribution network to fuel growth opportunities within the Freshly business and across Nestlé’s portfolio.
“We are excited to welcome Freshly to the Nestlé family,” said Nestlé USA chairman and CEO, Steve Presley. “Consumers are embracing e-commerce and eating at home like never before. It’s an evolution brought on by the pandemic but taking hold for the long term. Freshly is an innovative, fast-growing, food-tech startup, and adding them to the portfolio accelerates our ability to capitalise on the new realities in the US food market and further positions Nestlé to win in the future.”
“As the largest food and beverage company in the US, Nestlé is committed to driving the evolution of the food industry through innovation across all aspects of its business, be it through in-house capabilities or strategic acquisitions," a Nestle release added.
Nestlé purchased an approximately 16 per cent stake in Freshly in 2017 as a strategic move to evaluate and test the burgeoning market.
Freshly pioneered the direct-to-consumer prepared meal delivery channel and is known for its use of standard-setting technology and analytics. Growing year-over-year since launching in 2015, Freshly is now shipping more than one million meals per week to customers in 48 states. Its 2020 forecasted sales are $430 million.
"We are extremely excited to expand our relationship with Nestlé,” said Freshly CEO Michael Wystrach. “Our mission is to make eating healthy easy by bringing nutritious, high quality meals directly to customers’ homes. Convenience and nutrition are driving forces in the future of food, and our becoming a part of the world’s largest food company confirms that. With Nestlé, we will have access to resources, research and development, and y”
Freshly Inc is a weekly subscription service delivering fresh, chef-cooked meals that can be heated and served in 3 minutes directly to customers' doors. All that is needed is a microwave, fork and plate to get a satisfying lunch or dinner on the table.
Freshly's food philosophy is centered on less sugar, less processed, and more nutrients. All meals are gluten-free and single-serve for effortless portion control. Developed by chefs and nutritionists, the menu features better-for-you versions of classic comfort foods with smart ingredient swaps. Freshly makes eating better easier than ever, one box at a time.