Convenience is king: Farro Fresh the latest business to join grocery delivery trend

  • News
  • March 18, 2015
  • Elly Strang
Convenience is king: Farro Fresh the latest business to join grocery delivery trend

Countdown led the way in 2013 by offering online supermarket shopping and in 2014, its website was getting around 500,000 visits a month.

But a new trend is on the rise. Statistics show that Kiwis are discarding their usual shopping habits in favour of getting gourmet food kits delivered.

According to Nielsen’s Consumer Media Index Survey, 113,000 household shoppers have had gourmet meals, recipes and ingredients delivered to their home in the past month.

My Food Bag was the first gourmet delivery company on the scene in 2013 and now competition is heating up, as Farro Fresh has joined the fray with Farro Foodkits.

Farro Fresh marketing manager Dylan Yelavich says the Foodkits were launched in response to customers’ demands for a food kit delivery service.

“With the fast pace of life, Farro Foodkits is a direct response to what our customers have been asking for over the last few years. They've been wanting to not only eat, but also prepare simple and delicious meals,” he says.

He says the company is getting a variety of people signing up, from families wanting to try something new to people wanting a way to cater for their dinner parties or functions.

Currently, the Foodkits are available for delivery in Auckland Central. 

There are over 40 Foodkits available, with more being added each week. They vary from “Tempt your Tastebuds” for customers looking to be adventurous and try something new, to “Express”, where meals are ready in 20 to 30 minutes.

Meals available in the "Express" Foodkit category

The seasonal Foodkits are made up of ingredients sourced from Farro Fresh stores.

Yelavich says Farro’s service is more flexible than other options on the market because customers get to choose what they want to eat each day from over 40 recipes.

Both Farro Foodkits and My Food Bag have brought the big guns of the food industry on board to add some credentials to their services.

Ray McVinnie, chef, author and Masterchef judge, is the ambassador and chief recipe developer for Farro Foodkits.

My Food Bag also has Masterchef ties: the head chef and dietician is season two Masterchef winner Nadia Lim.

Saatchi & Saatchi Worldwide executive chairman Kevin Roberts became chair of the company this month.

His presence on the board, and My Food Bag’s success, shows gourmet food delivery is big business in New Zealand.

After two years, My Food Bag says it has about 15,000 customers and its revenue is $40 million annually.

Overseas, everyone wants a slice of the online grocery delivery pie.

 In the US, Uber is trialling UberEssentials. The service offers to restock essentials, such as medicine, groceries, or cleaning products, and boasts a speedy 10-minute delivery service.

Instacart, a two-year-old personal grocery shopping service startup in the US, has reportedly raised over $100 million in investments. This makes the company worth an impressive US$2 billion.

The website lets customers choose a grocery store, shop for items and receive on-demand delivery of the items within an hour.

This trend is still growing. The next step could potentially be drone delivery to make the process even quicker.

Giant online companies such as Google and Amazon have created drone delivery services to drop groceries to customers’ doors within 30 minutes.

In the US, fast food chain Domino’s Pizza has trialled a “Domidrone” to make its pizzas airborne.

Back home in New Zealand, a Gisborne man is trying to get coffee delivery by drone underway for those who can’t easily access a café.

He has printed custom-made coffee cup holders with a 3D printer and has invented a release mechanism for the drones.

This drone business is just food for thought for now, as New Zealand law requires the person in control of it to keep it in their line of sight at all times.

But if there’s one thing to away from food delivery trends, it’s this: convenience is king for the consumer.

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