Freshly's Meal Delivery Service Run Is Officially Ending
The past decade has brought both highs and lows for meal-kit delivery services nationwide. When the Berlin-based company HelloFresh was founded in 2011, it struck a chord with Americans who wanted to cook for themselves but didn't have the time to hunt for recipes and ingredients on their own. Before long, the company came to operate six different meal-kit brands in 16 countries, per HelloFresh Group. Blue Apron joined the scene to similar instant success in 2012, racking up a $2 billion net worth just three years after it was founded, says Insider.
While the competing brands are still around, they've seen better days. Despite the fact that HelloFresh is still ranked as the world's popular meal-kit service, per Statista, the brand announced massive layoffs in October 2022 following a post-pandemic slash in profits, Eater reports. As grocery stores reopened and the threat of the coronavirus was quelled by vaccines and boosters, many subscribers no longer needed quite as much help to prepare dinner.
Blue Apron followed suit by announcing big layoffs in December 2022, citing a similar dip in profits. That same month, meal-kit underdog Freshly had to shutter its business entirely, Food Business News reports.
The brand was two years into a Nestlé contract
Freshly entered the meal-kit ring in 2015, just as the trend was setting sail on its now-dwindling journey of golden years. In 2020, it was acquired by Nestlé (which called the brand "a pioneer in healthy prepared meals") for $950 million. "This move brings together Nestlé's deep understanding of what and how people eat at home," reads a statement on the food giant's website.
Despite the huge corporate sponsorship, Freshly found itself in even murkier waters than its competitors just two years into the acquisition. In December, the company updated its website with news of its demise. "It is with a heavy heart that we announce the Freshly meal delivery service will be ceasing operations," it reads. "This is a difficult time as we say goodbye to our incredible community." Per Food Business News, Freshly subscribers can continue to place orders through January 17, 2023. The final day of shipping will be January 21.