HelloFresh is a publicly traded meal-kit company based in Berlin, Germany. It is the largest meal-kit provider in the United States,[2] and also has operations in Australia, Canada, New Zealand and Europe (Germany, Austria, Switzerland, Belgium, Netherlands, Luxembourg, France, Italy, Ireland, Spain, Scandinavia and United Kingdom).[3]
 | |
| Company type | Public (Societas Europaea) |
|---|---|
| ISIN | |
| Industry | Meal kit |
| Founded | November 2011 |
| Founders |
|
| Headquarters | , Germany |
Key people | |
| Revenue |  €5.99 billion (2021)[1] |
Number of employees | 14,635 FTE[1] (2021) |
| Website | |
It has been listed on the Frankfurt Stock Exchange since its IPO in November 2017.[4] At the end of 2022, the company had approximately 7.1 million active customers worldwide, including 3.4 million in the U.S.[5]
History
HelloFresh was founded in November 2011 by Dominik Richter, Thomas Griesel, and Jessica Nilsson in Berlin, Germany.[6] Richter and Griesel packed and hand-delivered to the first 10 customers.[7] It was one of the earlier companies in the meal-kit industry.[8] They were initially funded by Rocket Internet, a German startup studio company. They first started delivering meal kits to paying customers in early 2012, and expanded to the Netherlands, UK, US and Australia the same year. By 2014, the company claimed to be delivering 1 million meals per month.[6] They raised $50 million in a 2014 funding round, after having raised $10 million in 2012, and $7 million in 2013.[8]
By March 2015, the company had 250,000 subscribers, although it was still not profitable.[9] In September of that year, it was valued at €2.6 billion in a funding round where it raised €75 million, making it a unicorn company.[9] The company was still majority-owned by Rocket Internet at that time. It cancelled a planned IPO in November, due to concerns about the company's proposed value.[10] It experienced significant growth during the year, with 530,000 subscribers by the end of October.[11] It had 750,000 subscribers by July 2016,[12] and 1.3 million by the third quarter of 2017.[13]
In October 2017, the company announced a planned IPO on the Frankfurt Stock Exchange to raise $350 million.[13] On November 2, the company completed its IPO, valuing it at €1.7 billion.[14] At the time of its IPO, the company had a market capitalization of more than double Blue Apron, its largest US-based competitor.[15]
In March 2018, HelloFresh acquired Green Chef, a US organic meal-kit company.[2] In October 2018, Toronto-based HelloFresh Canada acquired Chefs Plate, a Canadian meal-kit company.[16]
In 2019, Rocket Internet sold its remaining stake in HelloFresh by accelerated book building to international institutional investors.[17][18] Rocket Internet had held a 30.6% stake in HelloFresh, as of the end of 2018.[19]
In 2020, HelloFresh acquired ready-made meal company Factor75 (since rebranded to just Factor) for up to $277 million. Factor75 was started in Batavia, Illinois in 2013 by Mike Apostal and Nick Wernimont. At the time of the acquisition, it had grown to a $100 million company.[20][21]
In April 2022 HelloFresh launched in Japan, the first Asian market for the meal box provider. Just 8 months later on December 20, 2022, HelloFresh announced their withdrawal from Japan with the CEO Thomas Griesel admitting failure in his ability to drive reasonable ROI. Employees were notified of their layoffs with less than the legal 30-day notice period.[22] On September 27, 2023, HelloFresh filed for bankruptcy in the Tokyo District Court with total debt of 3 billion yen.[23]
On November 17, 2022, HelloFresh launched in Spain under the name HelloFresh SE, promising to use "100 percent Spanish raised beef, chicken and pork."[24] The following year, they announced that they would cease importing coconut milk from Thailand, following an investigation by People for the Ethical Treatment of Animals which accused Thai farmers of forcing southern pig-tailed macaques to harvest coconuts.[25]
HelloFresh announced in August 2023 they would expand their Factor ready-to-eat brand into Europe, starting with the Netherlands.[26]
On January 11, 2024, after an investigation begun in 2022, HelloFresh was fined £140,000 by the UK's Information Commissioner's Office (ICO), for sending millions of spam texts and emails, and contacting customers even after being asked to stop.[27]
Corporate affairs
The key trends of HelloFresh are (as at the financial year ending December 31):[28]
| Year | Revenue (€ bn) | Net income (€ m) | Employees |
|---|---|---|---|
| 2017 | 0.9 | –92 | 2,715 |
| 2018 | 1.2 | –83 | 4,276 |
| 2019 | 1.8 | –10 | 4,477 |
| 2020 | 3.7 | 369 | 6,432 |
| 2021 | 5.9 | 256 | 14,635 |
| 2022 | 7.6 | 127 | 19,595 |
| 2023 | 7.5 | 19 | 19,012 |
Business
HelloFresh's business model is to prepare the ingredients needed for a meal, and deliver them to customers, who must then cook the meal using recipe cards,[29] which can take around 30–50 minutes. It generally provides about three two-person meals a week for about $60 to $70.[8] Each week, about 45 recipes are offered for users to choose from.[30] In several markets, HelloFresh provides "Rapid Box" meals which take only 20 minutes to prepare.[31] Their Factor brand competes in the ready-to-eat market, with not-frozen meals requiring about 2 minutes of preparation.[20]
HelloFresh previously offered a wine-subscription service, based on that of its competitor Blue Apron.[32] This subscription, HelloFresh Wine Club started at $14.83 per bottle or $89 for the whole month (includes 6 bottles of wine). With the Wine Club, customers could also pick between All Reds, All White, or a Mixed Box (Red and White) for their wine.[33]
In March 2018, HelloFresh announced their acquisition of Green Chef, a USDA-certified organic meal-kit company. HelloFresh planned to use the acquisition to offer the largest selection of meal plans and diets for consumers on the market, adding Green Chef's organic vegan and gluten-free menus, including those plans compliant with Paleo and Keto diets.[34] In 2020, HelloFresh acquired ready-made meal company Factor75 (since rebranded to just Factor) for $277 million. Factor was founded in 2013 and produces fresh pre-cooked meals with a focus on health and nutrition.[35][36][37]
The company's US operations were responsible for 60% of revenues as of November 2017, and it has approximately 44% of the American market.[14]
HelloFresh has operations in the United States, Canada, United Kingdom, Australia, Germany, Austria, Switzerland, the Netherlands, Belgium, Luxembourg, Sweden, Norway, Denmark, France, Italy, New Zealand, Japan[38] and Spain.[3]
HelloFresh offers partnership opportunities,[39] including in-store, affiliate, and corporate partnerships.[40]
Union drives
Warehouse workers for HelloFresh in Aurora, Colorado, and Richmond, California, initiated a union drive with UNITE-HERE in September 2021.[41] HelloFresh management responded by hiring Kulture Consulting, a "union avoidance"[42] consulting firm.[41] Workers were compelled to attend captive audience meetings with anti-union messages.[42] The Aurora election was held on November 22, and Richmond held its election on December 15; workers in both places voted decisively against unionization amid accusations of the company's interference and intimidation in the campaign, with the union contesting the results in Aurora.[42][43] In Newark and Totowa, New Jersey, HelloFresh workers are unionizing with Brotherhood of Amalgamated Trades.[44][needs update]
Climate labeling
In November 2021, HelloFresh launched their Climate Labeling Initiative. This labeling is to let consumers know when recipes are producing up to 85% less CO2e emissions. The initial launch was in Germany and expanded to ten other countries by late 2022.[45]
References
External links
