Meal delivery kits have been gracing kitchen counters more so recently, and HelloFresh isn’t one to slow down on this growth. Recently, the Germany-based international meal kit giant acquired an approximately 10 percent stake in its Russian counterpart Chefmarket.
“We are excited about the investment which will enable us to further expand HelloFresh’s TAM and strengthen our global footprint. HelloFresh and Chefmarket share similar values, especially when it comes to fresh, locally sourced ingredients and sustainability. With this investment, we are looking forward to having an impact on changing the way even more people eat,” said Ed Boyes, Chief Commercial Officer at HelloFresh.
With the Russian food market representing the fifth largest food market globally, noted the release, the total addressable market (TAM) expansion is one important growth lever in HelloFresh’s long-term strategy and entails identifying attractive opportunities to selectively expand geographically.
In addition, the expansion of HelloFresh’s TAM is well underway to date, with its Green Chef brand being launched in the U.K. and the market entry into Norway, the third market for HelloFresh in the Nordics, following Sweden and Denmark.
“Chefmarket has seen healthy growth over the past [few] years as an increasing amount of consumers in Russia have learned to love to cook with meal kits,” Sergey Ashin, Chief Executive Officer and Founder of Chefmarket said. “Combining HelloFresh’s expertise in fifteen different markets with Chefmarket’s local supply chain and product development capabilities will support the continued strong growth of the meal kit market in Russia.”
The amount of this capital injection investment was not disclosed, but HelloFresh states it amounts to a single-digit million Euro figure in its announcement. Additionally, the investment represents a strategic step for HelloFresh to tap into an emerging market with significant growth potential.
Keep an eye on the movements of foodservice and meal delivery as Deli Market News keeps a pulse on the wire.