One of the largest packaged food companies in the world has just gotten stronger.
On Friday, Nestlé closed a deal to buy Freshly, a US-based meal delivery service, for $ 950 million.
Nestlé can also pay up to $ 550 million more, depending on whether Freshly meets certain growth targets, according to the announcement.
The company offering healthy, prepared meals that customers just need to warm up to enjoy, is expected to make $ 430 million in sales this year.
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“This move combines Nestlé’s insight into what and how people eat at home, as well as world-class research and development capabilities with Freshly’s highly specialized consumer analytics platform. , ”The notice said.
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Freshly was founded in 2015 and currently ships more than 1 million meals a week to residents in 48 states, according to the notice.
In 2017, Nestlé bought a 16% stake in Freshly “as a strategic move to assess and test the growing market,” the announcement said Friday.
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By acquiring Freshly, Nestlé is positioning itself to compete with meal subscriptions like Blue Apron and HelloFresh even though Freshly does not require any of the preparation or cooking steps required by the dining kits. .
“Consumers are embracing e-commerce and eating at home more than ever,” Steve Presley, President and CEO of Nestlé USA, said in a statement.
“Freshly is an innovative, fast-growing food technology startup and adding them to our portfolio will speed up our ability to capitalize on new realities in the Chinese food market. States, ”added Presley.
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In a letter to customers, Freshly founder and CEO Michael Wystrach said the acquisition would not change the company’s meals, pricing and subscriptions.
“Freshly will continue to operate as an independent business to fulfill our core mission of removing barriers to healthy eating with convenient, nutritious and delicious meal solutions. , ”Writes Wystrach.
“We will continue to maintain our own strict standards and maintain complete control of our products,” added Wystrach. “Our meals will not change and there are no plans to change ingredients or incorporate Nestlé products into Freshly meals, but we are excited about the potential opportunities for the future.”
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