Nestlé buys Freshly, valuing meal delivery firm at $950M – Grocery Dive
- Nestlé purchased Freshly, a provider of fresh-prepared meal delivery services in the U.S., in a deal valuing the company at $950 million, the companies said in a statement. The transaction comes with potential additional payouts of $550 million, contingent on successful growth of the business.
- The world’s largest food manufacturer purchased a roughly 16% stake in Freshly in 2017 to evaluate and test the market. The food delivery company is forecast to post sales of $430 million in 2020, shipping more than 1 million meals per week.
- Freshly is looking to boost its delivery, capacity and product offerings after seeing a surge in demand during the pandemic. Meanwhile, 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.
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. Freshly features a menu of fresh, chef-cooked meals, breaking down barriers to healthy eating by delivering nutrition and convenience.
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. Nestlé noted in the statement announcing the deal that it purchased a small stake