2018 was a hard year for Blue Apron, with the meal delivery company seeing a steady decline in stock value and loss of major partnerships. But 2019 is shaping up to be a better year for the company, after it announced a new partnership with Weight Watchers (WW) Inc. Clearly, the company is poised to benefit from a fresh batch of New Year’s diet resolutions.
“The arrangement will help [the] company stabilize its customer count without having to spend tens of millions of dollars on advertising and promotions that have hurt its bottom line,” Blue Apron CEO Brad Dickerson said in a recent interview, according to the Wall Street Journal (WSJ).
Dickerson confirmed that Blue Apron will be paying WW Inc. resulting subscription fees from the partnership, though no financial details were released. The CEO has hopes that the new partnership will aid the company’s profitability in the coming year and raise stocks above the penny stock threshold.
WW Inc. has worked with meal kit provider Chef’d before, but saw difficulty in marketing the meals to the kit’s consumers. Although no success came from the partnership with Chef’d, WW Inc. CEO Mindy Grossman is optimistic, commenting that she has “great confidence in the partnership with Blue Apron," according to WSJ.
Deli Market News is as intrigued as you are about the new partnership and will keep you posted on any new developments.