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HelloFresh acquires organic start-up Green Chef

HelloFresh has announced it has acquired Green Chef, the USDA-certified organic meal kit company in a move that the company hopes will bolster revenues.

HelloFresh currently competes with US rival Blue Apron and said in a statement that the acquisition would contribute about US$15 million a quarter to its revenue from the second quarter, according to Reuters.

HelloFresh will now offer the largest selection of meal plans for consumers, adding Green Chef’s popular organic vegan and gluten-free menus, including those plans compliant with Paleo and Keto diets.

HelloFresh, which is the largest meal kit company in the world and ranks second in the key US market, saw sales gain more than 50 percent last year to US$1.1 billion. The company says it will turn a profit in 2018 and pass industry pioneer Blue Apron in US sales.

Green Chef will add its organic menus to HelloFresh’s product portfolio and together leverage HelloFresh’s scale and resources to continue to drive more growth with an even broader group of households.

“Our customers are at the center of our thinking when it comes to offering great dining experiences. Green Chef has a groundbreaking approach to its organic menus and will be the perfect addition to HelloFresh’s meal plans,” says Tobias Hartmann, President for North America at HelloFresh.

“HelloFresh will now offer the most customized meal choices to customers and we are excited to welcome Green Chef’s talented team and production resources to HelloFresh.”

“We were the first certified organic and gluten-free meal kit company in the US, an important distinction to consumers who are committed to eating organically or are sensitive to gluten. With HelloFresh, we will only further amplify our mission to give consumers across the country a simple way to eat and live healthier,” says Michael Joseph, Chief Executive Officer of Green Chef.

The acquisition of Green Chef will drive synergies for operations, logistics, and procurement. Both companies share a strong vision on the important values associated with food quality and safety, sourcing the freshest ingredients and sauces, using sustainable packaging and pursuing a data-driven approach to meeting and exceeding customer expectations throughout their entire experience.

Financial terms of the agreement have not yet been disclosed.

Just this week, the Berlin-based meal kit company unveiled a 52 percent jump in full-year revenues for 2017 and said its “core business” was on track to break even in the final quarter of 2018.

HelloFresh is active in ten countries, including the US, UK, Germany, the Netherlands, Switzerland and Canada. It had 1.45m active customers at the end of last year and delivered close to 40m meal kits over the fourth quarter 2017.

HelloFresh said it expected full-year sales to rise by 25-30 percent in 2018




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