Nestlé buys Freshly healthy meal delivery

With the transaction signed on October 30, 2020, the world’s largest food producer will own a company that has achieved great success in delivering fresh, nutritious and healthy meal prepared by chefs.

The Freshly story

Founded in 2012, Freshly delivers a menu of fresh, chef-cooked meals to customers across the country, breaking down the barriers to healthy eating by delivering nutrition and convenience at scale.

Freshly Inc. is a weekly subscription service delivering fresh, chef-cooked meals that can be heated and served in 3 minutes directly to customers’ doors. All that is needed is a microwave, fork and plate to get a satisfying lunch or dinner on the table. With a corporate mission to break down the barriers to healthy eating, Freshly believes that taste and health don’t need to be compromised for convenience. Freshly’s food philosophy is centered on less sugar, less processed, and more nutrients. All meals are gluten-free and single-serve for effortless portion control. Developed by chefs and nutritionists, the menu features better-for-you versions of classic comfort foods with smart ingredient swaps. Freshly makes eating better easier than ever, one box at a time. It includes choices free of dairy, gluten or soy.

In 2017 Nestlé, the world’s largest food manufacturer purchased a roughly 16% stake in Freshly to evaluate and test the market.

Freshly is looking to boost its delivery, capacity and product offerings after seeing a surge in demand during the pandemic, in 2020, shipping more than 1 million meals per week. During the 8 year of operation Freshly opened six manufacturing and distribution facilities, offices in three countries, and built a team of almost 2000 employees.

Flying with the trends

Nestlé USA is committed to unlocking the power of food to enhance quality of life for everyone, today and for generations to come. The company’s food and beverage portfolio includes some of the most recognizable brands in the United States including Coffee mate, DiGiorno and Nestlé Toll House as well as category disruptors such as Sweet Earth, and are in nearly every home in the country. Nestlé USA also boasts the largest coffee portfolio in the U.S. with Nescafé, Nestlé Starbucks Coffee and Chameleon Cold Brew. With 2019 sales of USD 11 billion.

Nestlé has been rapidly overhauling its portfolio to include healthier and faster-growing options, jettisoning those in which revenue is not rising as quickly, as well as segments in which the Switzerland-based company is not one of the largest players.

“We are excited to welcome Freshly to the Nestlé family,” said Nestlé USA Chairman and CEO, Steve Presley.

The common denominator

Freshly sits firmly in the middle of several hot trends impacting the food space. It’s easy to see why Nestlé, which has been building its own presence in these areas, would be interested in adding the meal delivery company to the fold. Nestlé said the merger combines its deep understanding of what and how people eat at home and its research and development capabilities with Freshly’s highly specialized consumer analytics platform and distribution network.

On the Freshly website Michael Wystrach, Founder & CEO of Freshly is pleased to report on the merger and reassure its readers about the survival of the Freshly name and quality: “I find myself reenergized to continue to build, innovate, and grow a massively successful company, alongside Nestlé and you, our loyal customers.” Wystrach said Freshly wants to speed up its delivery and, by the end of 2021, plans to triple its product offerings and double capacity.