FDBusiness.com

Nestlé has acquired Freshly, one of the leading fresh-prepared meal delivery services in the US. The deal values Freshly at US$950 million, with potential earnouts up to US$550 million contingent to the successful growth of the business.

Founded in 2015, 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.

This move brings together Nestlé’s deep understanding of what and how people eat at home, and world class research and development capabilities with Freshly’s highly specialized consumer analytics platform and distribution network to fuel growth opportunities within the Freshly business and across Nestlé’s portfolio.

“We are excited to welcome Freshly to the Nestlé family,” says Nestlé USA Chairman and CEO, Steve Presley. “Consumers are embracing ecommerce and eating at home like never before. It’s an evolution brought on by the pandemic but taking hold for the long term. Freshly is an innovative, fast-growing, food-tech start-up, and adding them to the portfolio accelerates our ability to capitalize on the new realities in the US food market and further positions Nestlé to win in the future.”

As the largest food and beverage company in the US, Nestlé is committed to driving the evolution of the food industry through innovation across all aspects of its business, be it through in-house capabilities or strategic acquisitions. Nestlé purchased an approximately 16% stake in Freshly in 2017 as a strategic move to evaluate and test the burgeoning market. Freshly pioneered the direct-to-consumer prepared meal delivery channel and is known for its use of standard-setting technology and analytics, which will build upon Nestlé’s strong base of innovation. Growing year-over-year since launching in 2015, Freshly is now shipping more than one million meals per week to customers in 48 states. Its 2020 forecasted sales are US$430 million.