In the fourth quarter of 2020, Meal kit company HelloFresh grew its revenue by 143 percent year-on-year, reaching more than $51.8 million for the period.
The rise in subscriptions comes after the company doubled its recipe offerings and introduced a new range of sides, desserts, and lunch options. The trend towards online food shopping and nationwide expansion of their distribution network is also seeing their demand rise with their meal kits now accessible to over 84 percent of the population, up from 72 percent last year.
Tom Rutledge, HelloFresh NZ CEO says the company distributes over half a billion meal kits to households around the world annually and New Zealand is one of their fastest growing markets.
“The lockdowns drove an increase in sales as people turned to meal kits as a way of minimising the need to leave home for groceries,” he says.
“As well as providing food we offer a welcome distraction and a sense of occasion to dinner. Having provided these positive experiences to a broader audience is a great foundation which will help sustain our increased market share now that more meals continue to be taken at home.”
Kiwi growers and food suppliers are also benefiting from HelloFresh’s increasing market share, shipping more than 10 tonnes of fresh produce each week to the company’s Auckland distribution centre.
Since launching in 2018, the company has worked with multiple meat, dairy, and produce suppliers, who as a result of the partnership, have seen demand for their product grow by 120 percent over the past six months. HelloFresh is now many suppliers’ largest customer and has filled a gap left by a challenging export market.
James Massey, managing director of Botany Group, which produces Greek yoghurt, sour cream, and other dairy products in Canterbury, says an increasing proportion of their business is now dedicated to meeting the demand from HelloFresh.
“Our supply volumes to HelloFresh have grown exponentially over the past year which has seen us expand capacity and add on more production shifts to accommodate their orders.
“The consistency of order volumes in this channel has also allowed us to invest in new specialised equipment which also provides a new capability to grow into other markets.”
Rutledge says the HelloFresh team take pride in providing Kiwis with a diverse range of meals from local suppliers.
“We know that our customers value the flexibility of our offering and the opportunity to have a direct impact on the recipes.”