Meal Kits Hitting a Slump?

Business plans to bring people back to the kitchen with meticulously measured and packaged meal prep kits may not be the money makers once promised, suggest recent headlines.

Food Dive reported that names like Blue Apron and HelloFresh, some of the largest and earliest companies to hit the meal kit market, have also been the first to suffer. Some hurdles have been consumer complaints of wasteful packaging, lack of meal variety and overly fussy steps that take too long to get dinner on the table. 

More than ever, standing out from the meal kit crowd is a must. Companies are differentiating by linking up with celebrities, catering to special diets, creating unique cuisines and more. Smaller, more agile companies have been quick to respond with streamlined meals, reusable packaging and specialized meals, from vegan dishes curated by New England Patriots football star Tom Brady, to local vendors who provide only the season’s best.

Even so, the number of competitors in the meal kit market has most likely peaked and “will eventually winnow down to two or three main players,” market expert Rob Wilson, managing director at L.E.K. Consulting, told Food Dive. Many are seeking business partnerships to reinvent the meal kit business plan. Chef’d is working with ingredient vendors to raise capital. Food Dive notes that around the same time Amazon announced its intent to buy Whole Foods, Nestlé purchased a minority interest in Freshly, a provider of direct-to-consumer ready meals, for $77 million.

In a partnership that could prove meal preparation belongs where it has always been – in the grocery store – Albertsons bought Plated for a reputed $200 million. This recent development “will eventually put Plated’s meal kits on shelves at all of Albertsons’ banners – including Jewel-Osco, United Supermarkets and Safeway. Altogether, Albertsons’ banners serve 35 million customers and could reach far more people than the entire meal kit industry currently serves,” Wilson told Food Dive.

Grocerant-Ready Ideas:

• Slow-cooker-ready bundles in the meat department
• Rotisserie-based meal kits with sides that can be ready in three steps
• Vegetarian kits that eliminate chopping and measuring