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Home Featured

Nestlé USA Acquires Freshly For $1.5 Billion

by Editorial Team
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Nestlé USA Acquires Freshly For $1.5 Billion
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  • About Freshly
  • Nestle on Acquiring Freshly
  • Nestle acquires Freshly for $950 Million
  • Nestlé had acquired a 16% stake in Freshly in 2017
  • Nestle USA aims to capitalize on new conditions in the U.S. food market

Nestlé USA announced today its acquisition of Freshly. The deal was valued at $950 million, with a potential earnout of up to $550 million. The earnout, however, depends upon the successful growth of the business. The deal was signed and closed on October 30, 2020. 

About Freshly

Freshly was founded in 2015 as a food delivery startup. It delivers fresh, chef-cooked meals to customers within the US. It has successfully tackled the barriers to healthy foods by providing nutrition and convenience at scale. The NYC based startup delivers meals to your homes in weekly orders. And unlike a meal kit startup, where you spend a lot of time cooking, it can be prepared quickly in your microwave. Thereby within minutes, customers get a satisfying lunch or dinner ready at their tables. 

Freshly believes that taste and health should not be compromised for convenience. Its food philosophy is centered on minimal sugar and food processing while providing more nutrients. All meals provided are gluten-free and arrive in a single-serve portion to reduce wastage. The menu is developed by qualified chefs and nutritionists. It also features better-for-you versions of classic comfort foods with smart ingredient swaps included.

Nestle on Acquiring Freshly

The startup is now serving over 1 million meals per week across 48 states. $430 million is the estimated sales for 2020. Nestlé is hoping to combine its world-class research and development capabilities with Freshly’s operation. Its highly specialized consumer analytics platform and distribution network will fuel growth opportunities.  The CEO of Nestlé USA, Steve Presley, reports, “We are excited to welcome Freshly to the Nestlé family.”

Presley adds that consumers are now embracing e-commerce and eating at home like never before. The restriction on movement due to the pandemic has created restrictions. But this scenario may not hold for the long term. He says that adding Freshly’s fast-growing startup to Nestlé’s portfolio will boost their position. Their combined ability to capitalize on new conditions in the U.S. food market in the future.

Nestlé had purchased a 16% stake in Freshly back in 2017. Since its launch in 2015, Freshly has reported year-over-year growth. Presently, Nestlé is the largest food and beverage company in the U.S.  The acquisition will strengthen its position in the U.S. and expand the ability to deliver a wide variety of delicious food to consumers. Freshly will have access to Nestlé’s resources, research, and development.  

mm

Editorial Team

We at Appedus are a group of digital nomads aggregating, writing, and publishing the best of the tech news in the mobile app ecosystem. Our constant endeavor is to get the most actionable news for you to use.

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