Nestlé USA Acquires Minority Interest In Freshly
Nestlé USA has announced that it has acquired a minority interest in Freshly, a provider of direct-to-consumer (DTC) healthy prepared meals, which currently supplies consumers in 28 states with weekly shipments.
Nestlé was the lead investor in the $77 million (€69 million) round of new funding announced by Freshly, and the world's biggest food company will enter an online prepared-meals market that is currently $10 billion (€8.9 billion) in size in the United States.
Part of the arrangement sees Nestlé USA’s food-division president, Jeff Hamilton, join Freshly's board of directors.
Nestlé USA’s investment will help fund Freshly in constructing a new East Coast kitchen and distribution centre in 2018, as it expands to nationwide service.
Nestlé USA chairman and CEO Paul Grimwood said, "While most food choices are still made in supermarkets, it's clear that consumers are responding to a growing universe of direct-to-consumer options, made possible through innovation.
“Acquiring a position in Freshly not only gives us access to this growth market, but it also brings reciprocal benefits for both companies. Nestlé will gain visibility into Freshly's advanced analytics and its highly effective distribution network, and Freshly will benefit from our R&D, nutrition and sourcing expertise."
Freshly CEO Michael Wystrach added, "We are extremely excited to work with, and to learn from, Nestlé, the largest food company in the world.
"This investment and close partnership will allow Freshly to continue to expand and rapidly scale our reach in order to achieve our goal of being in every household in America."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O’Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.