One of the largest packaged food companies in the world just got bigger.
On Friday, Nestlé completed the acquisition of Freshly, a US-based food delivery service, for US$950 million.
The announcement stated that Nestlé may also pay another US$550 million, depending on whether Freshly has reached certain growth targets.
The company provides healthy, prepared meals that customers can enjoy with only heating, and it expects sales this year to reach $430 million.
The announcement stated: “This move combines Nestlé’s deep understanding of the way people eat at home and the world-class R&D capabilities provided by Freshly’s highly specialized consumer analysis platform.”
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According to the announcement, Freshly was founded in 2015 and currently ships more than 1 million meals to people in 48 states every week.
The announcement on Friday stated that in 2017, Nestlé acquired a 16% stake in Freshly, “as a strategic move to evaluate and test emerging markets.”
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By acquiring Freshly, Nestlé positions itself to compete with meal package subscriptions such as Blue Apron and HelloFresh, even though Freshly does not require any preparation or cooking required for meal packages.
Steve Presley, Chairman and CEO of Nestlé USA, said in a statement: “Consumers are embracing e-commerce and eating at home like never before. This is an evolution brought about by the pandemic, but it will remain in the long-term. Go down.”
“It is an innovative, fast-growing food technology startup recently, and adding it to the product portfolio can accelerate our ability to take advantage of the new realities of the US food market,” Presley added.
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Freshly founder and CEO Michael Wystrach said in a letter to customers that the acquisition will not change the company’s meals, prices and ordering methods.
“Xinjin will continue to operate independently to achieve our core mission, which is to eliminate barriers to healthy eating through convenient, nutritious and delicious meal solutions, and to use the power of Nestlé to open new doors to provide you with fresher and faster The food delivered Wystrach wrote.
Wystrach added: “We will continue to maintain our own strict standards and maintain complete control over our products.” “Our meals will not change, and there are no plans to change ingredients or integrate Nestlé products into Freshly meals, but We are excited about the potential opportunities in the future.”
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