Walmart is reportedly the latest retailer to plunge into the meal kit market, with new offerings slated to hit the company’s website just in time for the holidays.
Michael McDevitt, the CEO of Baltimore, MD-based meal kit company Terra's Kitchen, told financial news source TheStreet that the retail giant is looking to offer a selection of different meal kits from several companies online.
"This is a low-risk model for Walmart to see if their e-commerce shoppers will have an interest in meal kits—and if so, which ones are the most interesting to them," McDevitt told TheStreet. "There's no infrastructure risk, no marketing risk."
The news breaks only a week after Albertsons announced the acquisition of meal kit company Plated for $200 million.
With the meal kit market now valued at more than $2 billion, Walmart’s first foray into the category would be more of a portal for meal kit companies to sell through, with those companies paying a referral fee to the retailer.
While Walmart declined to comment to TheStreet at the time of the report, and McDevitt said he has not yet decided to join the program, he told the source that Walmart’s prominence as a retailer makes the proposition very attractive.
This venture is the latest in a slew of big moves for Walmart. The company recently entered a technology-driven delivery partnership with smart-lock company August Home to test a direct-to-refrigerator delivery pilot. And Walmart also announced plans to build a new, more cyber-conducive home office in its hometown of Bentonville, Arkansas.
Will Walmart’s meal kit brokering service take off? Deli Market News will keep you up to speed with the latest.