Woolworths to invest AU$30mn in meal kit provider Marley Spoon
Australian retail giant Woolworths has announced a strategic partnership with subscription-based meal kit provider Marley Spoon.
The deal will see Woolworths invest AU$30mn in the company (US$20.9mn), with $7mn of that figure going into the issue of Marley Spoon shares. This will see Woolworths own approximately 9% of Marley Spoon, allowing the company to participate in Marley Spoon’s growth in Australia.
Woolworths said that the investment would provide them insights from Marley Spoon’s market experience, and boost its online offering by promoting the service.
Brad Banducci, CEO of Woolworths Group said: “This partnership gives Woolworths exposure to the high-growth ready-to-cook meal kits segment and aligns with our ongoing goal of meeting our customers’ needs for healthy and convenient meal solutions. Marley Spoon has demonstrated it has a customer focused, innovative and entrepreneurial culture and we are excited to partner with them.”
Marley Spoon was said to benefit from Woolworth’s industry experience and access to the company’s customer base and supply chain.
Fabian Siegel CEO of Marley Spoon said: “As grocery spending shifts to online, home-delivered meal kits will play an increasingly large role in helping consumers save time with their weeknight meals. We see this partnership delivering important benefits to both Marley Spoon and Woolworths, with both parties incentivised to grow Marley Spoon’s business in Australia. We have chosen to partner with Woolworths because it’s clear they understand what scale-up businesses need. Despite their size, they have a genuine partnership mentality, offering us support to grow the business whilst empowering us to run our own race.”
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