Blue Apron, the struggling meal kit company, which has been fighting to keep its share prices over $1 for months, has perhaps recently hit upon a winning strategy. After closing a deal with Beyond Meat® to add the company’s plant-based products to its meal kits, Blue Apron saw its stock price surge by 53 percent per share on Tuesday afternoon.
The company has endured rocky times as of late, because despite its attempts to form strategic partnerships with WW, formerly known as Weight Watchers, and Walmart-owned Jet.com, Blue Apron last year was forced to cancel its pilot program with Costco, and cut its workforce by four percent.
According to Yahoo Finance, Blue Apron split its stock last month in an attempt to keep its stock price above $1 per share and avoid being delisted on the New York Stock Exchange. Adding Beyond Meat’s plant-based meat substitutes to its menu, starting in mid-August, positions Blue Apron to take advantage of changing food trends and attract new customers.
After going public in April, Beyond Meat’s market value has continued to rise, with its share price growing 582 percent since its initial public offering. The entire plant-based meat sector is booming, as according to the news source, the global market for meat substitutes is expected to hit $18.7 billion in sales by 2023.
Will this new partnership and expanded menu offerings be enough to propel Blue Apron out of penny stock hell? Deli Market News will continue to report.