HelloFresh Outpacing Meal Kit Competition

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Meal-kit supplier HelloFresh has enjoyed a notable uptick in popularity since the outset of the pandemic. And, even as COVID-19 vaccinations have increased and consumers have started to dine in restaurants more and increase their visits to supermarkets, the 10-year-old company has largely maintained its momentum.

In fact, in the first quarter of 2021, HelloFresh’s sales increased by 37%.

Since COVID-19’s arrival, of course, consumers’ food-buying habits have evolved to include more online food ordering. And HelloFresh has seized upon the opportunity, meeting consumers’ demand for meal flexibility.

The German company is also working toward expanding its grocery offerings through an online marketplace concept in the U.S. The online marketplace – currently only available in Europe – enables HelloFresh to fully integrate its food solutions and seeks to add as many as 3,000 products over the next 5 years. The consensus among Wall Street equities research analysts recently was that investors should “buy” stock in the publicly traded company, according to marketbeat.com (May 21).

Because a noted pre-pandemic study in 2018 estimated that approximately 75% of subscribers to leading meal-kit services unsubscribed within six months of signing up, some providers, like Blue Apron, have begun focusing primarily on providing value to existing customers, reported PYMNTS.com (May 18). HelloFresh, conversely, is largely focused on growing its customer base.

To fulfill the rising demand from customers, HelloFresh will further expand its production and distribution capacity. It has plans to expand production to Georgia and Texas, as those regions have an increase in demand.

Additionally, the meal-kit supplier is expanding its production and distribution capacity in Phoenix, as well. The new 440,000 square-foot facility will serve as the company’s largest shipping and fulfillment center, to further offer new menu features and expand the brand’s market. The expansion will also create 1,200 new jobs. Such an investment would enable HelloFresh to deliver its meal kits to its customers in an expedited fashion.