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The Spoon

Daily news and analysis about the food tech revolution

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Food Tech News: Food Waste Sneakers, Cell-Ag Children’s Book, and Bon Appétit’s New App

If you had a busy week and missed out on news in the food tech space, we’ve got you covered. In this round-up, we gathered some news on Bon Appétit’s recently launched app, HelloFresh’s new online marketplace, MoEa’s sneakers made from food waste, and a children’s book on cellular agriculture.

Bon Appétit launches ordering app for people with dietary restrictions

The Bon Appétit Management Company launched an app this week called Curated, which was developed by chefs and registered dieticians. The app was created to make ordering food from restaurant menus easier for those who have dietary restrictions and needs. Through the ordering system, diners can select from 12 different diets, including plant-based, low-carb, gluten-free, as well as dishes free from major allergens. Once a dietary preference is selected, Curated shows dishes and ingredients that are available and can accommodate. Diners can then customize their meal with ingredients, sides, and sauces that fit into their preferences. The app can be used at Bon Appétit cafes and dining service locations, and it is available for free through the Café BonApp mobile app on iOS and Android phones.

HelloFresh now offers an online marketplace

Meal kit company HelloFresh has now added HelloFresh Market to its online platform. The new market offer will offer a wide range of add-ons for customers’ weekly orders. The new options include snacks, fresh produce, desserts, sides, spices, breakfast items, and pantry essentials. HelloFresh offers predominately dinner meal kits, but the introduction of the market will provide customers with options for breakfast, lunch, snacks, and desserts. The offerings on HelloFresh Market will be rolling out to customers in the U.S. over the upcoming months.

MoEa is using food waste to make vegan leather sneakers

Companies have developed technology to make leather from mushrooms and prickly pear fiber, and now a company called MoEa is using food waste to craft alternative leather. Specifically, the company sources leftover grape pulp from the Italian wine industry, cactus leaves, non-edible corn, pineapple leaves, and apples that would otherwise be wasted. Customers can pick out what type of leather they want for the shoe, and each type of leather is offered in two colors. The company currently has a Kickstarter campaign for the shoes, and backers who pledge €86 or about $108 USD will receive a pair of shoes in September 2021.

A new book on cell-ag for children

Called “Where Do Hot Dogs Come From?“, authors Alex Shirazi and Anita Broellochs explain how cellular agriculture works through a story of a family barbeque. Geared towards children aged 3 to 7, the purpose of the book is to teach children about the sustainability of cell-based meat and inspire the next generation of scientists working on alternative protein options. There is currently a Kickstarter campaign for the book, and backers who pledge $25 or more will receive a copy of the book in October 2021.

Alt-Meat, Fancy Wines, and Chili’s: Black Friday/Cyber Monday Direct-to-Consumer Deals

So far, 2020 has been the year of the direct-to-consumer boom when it comes to food and beverage products, with major CPGs, restaurants, plant-based meat companies, and others setting up their own e-commerce sites to better serve homebound customers.

It follows, then, that this year’s enormous crop of Black Friday/Cyber Monday deals is chock full of offers from these companies’ sites, along with deals for meals, booze, and even groceries. And since we’re all stuck at home this year and going out to shop on Friday seems like a terrible idea as far as the pandemic is concerned, here’s a rundown of some of our favorite e-commerce food and bev deals happening over the next few days.

All Beyond Meat products on the company’s newly launched direct-to-consumer e-commerce store will be 20 percent off from 6 a.m. EST to 11:59 p.m. PST on Cyber Monday, Nov. 30. Bonus: if you’re one of the first 500 orders, you get a free Beyond Meat apron.

DoorDash just launched a gifting feature on its app that lets users send a food gift to another person. From now through Black Friday, Nov. 27, every customer that gives a gift of $20 or more gets $10 off their next order on DoorDash or Caviar.

Meat subscription service Crowd Cow is offering 20 percent off on a variety of meats and fish you can order via the Crowd Cow website. At the moment, there’s a healthy variety of shrimp, crap, steak, ground beef, cod, halibut and more available, and the company is adding new items to the sale every day. 

If you’re curious about testing out a meal kit, now might be the time to do so. A number of services are offering Black Friday/Cyber Monday deals this year. A couple notables are HelloFresh, which will give you $90 off your first five boxes, and Hungryroot, which will will offer 30 percent off your first delivery of $99 and throw in a free pack of almond chickpea cookie dough.

For all you winos, plenty of online retailers and subscription services are offering deals on vino. First-time buyers on Winc get 50 percent off their first order. Usual wines has a 21 percent discount going on orders of 12 bottles or more. Vinebox, meanwhile, is offering a 20 percent discount off its 12 Nights of Wine package through Nov. 30.

BonBowl, which makes an induction cooktop and accompanying bowl, is running a $50 off sale on Black Friday for orders placed via the BonBowl website. If you need further convincing this is a good purchase, check my full review of the device.

Finally, restaurants, especially chains, are always offering deals, and Black Friday/Cyber Monday is no exception. The folks at Delish have a solid rundown of these deals, which include chains like Peet’s Coffee, McAlister’s Deli, and, of course, Chili’s. Because it’s not a holiday if Chili’s isn’t somehow involved.

HelloFresh Buys Prepared Meal Delivery Service Factor75 for $277M

Meal kit company HelloFresh announced today that it is acquiring prepared meal delivery service Factor75. The deal is being done through Berlin-based HelloFresh’s U.S. subsidiaries and has the company paying up to $277 million in cash (up to $100 million is in the form of an earn-out and management incentives) for Factor75.

Factor75’s revenue is projected to reach $100 million for the full year 2020. HelloFresh is using the acquisition to expand its presence and market reach here in the U.S. Through the Factor75 purchase, HelloFresh will gain a Chicago office along with four production and fulfillment facilities. There is also a forthcoming facility that, according to the press announcement, will provide enough capacity to deliver more than $500 million worth of prepared meals annually.

This the second big acquisition of a prepared meal delivery service is as many months. At the end of October, Nestlé acquired Freshly in a deal that valued Freshly at $950 million (actual purchase price and deal structure details were not disclosed).

Both these acquisitions come against the backdrop of the COVID-19 pandemic, which has more people eating at home. Prepared meal kit companies like Factor75 and Freshly offer a convenient way to mix up home dining because meals are already cooked and just need to be re-heated. There’s no extensive preparation or lengthy cooking times like there is with traditional meal kits that just send ingredients.

Given that there are now three promising COVID vaccines on the horizon, one has to wonder if Factor75 is exiting at the right time. Obviously there is still a mountain of regulatory and logistical work that needs to be done before any vaccine becomes widely available. But if vaccines start to roll out over the next six to 12 months and consumers feel more free to venture out to restaurants and grocery stores whenever they want, will consumers still have an appetite for meal kits and prepared meal services?

Blue Apron Adds Customization, Extra Boxes to Meal Kit Subscriptions

Blue Apron announced today it has expanded its product line to introduce more flexibility into its meal kit subscription plans, likely in a bid to reach a wider number of homebound customers. To do this, Blue Apron unveiled three new features: recipe customization, the ability to get multiple meal kit boxes per week, and more meals per week for the two-person box.

Recipe customization is the most intriguing of these options. Customers will be able to “customize select recipes” by swapping out choice of protein, switching a veggie for a starch, increasing portion size, and replace a meat portion with a plant-based protein. (Blue Apron has maintained a partnership with Beyond Meat since 2019.) 

Blue Apron subscribers will also have the option to receive multiple boxes per week. Subscribers normally get one box per week that contains all ingredients for Blue Apron meals for that week. This new feature gives customers the option for two boxes per week, for a total of eight different recipes that can be delivered at staggered times. 

Finally, Blue Apron has added an extra meal to its Two-Person Signature box for a total of four meals per week. 

That the extra features are all about customization and flexibility makes sense, given the uncertainty of the restaurant dining room and the fact that more consumers are eating in these days. Adding more choice to its offerings potentially allows Blue Apron to reach a wider audience. 

Blue Apron has struggled for the last few years, along with the entire meal kit sector. Of late, though, the company has seen something of a resurgence. On its most recent earnings call, Blue Apron said its customer base grew by 20,000, and average revenue per customer increased 25 percent year over year.

Other meal kit companies, including Sun Basket, Purple Carrot, and HelloFresh, have also reported an uptick in demand.

In today’s press release, Blue Apron said its new features will be available to all subscribers by the end of the year.

SimplyCook Closes Series A Round for Its Flavor-Focused Meal Kit Service

London-based meal kit company SimplyCook just closed a 4.5 million Series A funding round, led by Octopus Investments (via TechCrunch).

Rather than ship full meal kits a la Blue Apron or HelloFresh, SimplyCook focuses on the extras involved with making a meal: herbs, spices, and sauces. Each “kit” is shipped with recipe cards and whatever flavorings the meals call for.

It’s yet another example of what the meal kit could be, and joins others that cater to mealtime extras: coffee, baked goods, and booze are also popular.

But don’t think SimplyCook simply ships powdered flavorings you could just as easily scoop out of a jar yourself. The company says it creates its own flavor blends of different ingredients that take the form of pastes, oils, rubs, and stocks, in addition to dried herbs and spices. Flavorings are pre-portioned, as well. Customers need only add the whole food ingredients called for on the recipe card. The company also sells its kits in-store at retail outlets in the UK.

There are some folks who can glance at a shelf full of spices and create an amazing meal with them on the fly. Most of us can’t, and so a subscription service that exposes customers to more flavor combinations and tastes could appeal to a pretty wide swath of people. Because there are no proteins or produce shipped in the kits, the monthly price is a lot cheaper than, say, HelloFresh or The Purple Carrot. That in turn translates to less risk in the consumer’s mind about spending money on a meal kit service that may or may not line up with their tastes. And since SimplyCook ships non-perishable items, there’s less risk for both the company and the consumer: the former doesn’t have to worry about food spoiling in transit; the customer doesn’t feel pressure to immediately make the dish the day it arrives.

Stateside, there are many SimplyCook-like options. RawSpiceBar, based out of the Bay Area, is $8/month for three fresh-made spices and corresponding recipes. You can build your own spice kit based on your dietary needs and/or preferences, and from there get even more granular in terms of what you want in a recipe, be it casserole dishes, grilled items, or, of course, raw foods.

Spice Madam is more expensive, at $20/month. Each month’s box contains spices and recipes from a different region, plus cultural info about that part of the world and a music playlist. Plus, 5 percent of each box goes to charity.

SpiceBreeze also focuses on different regions of the world, including flavors for between two and four different areas in one box. The only downside to this one is that you get just two dishes per month.

As for SimplyCook, it’s only available in the UK right now, though this new funding round will, the company expects, “fuel international launches.”

HelloFresh Jumps on Bandwagon to Sell Meal Kits in Grocery Stores

HelloFresh will start selling its meal kits at 600 Giant Food and Stop & Shop locations starting this week, The Wall Street Journal reports, as the meal kit sector’s migration from mail order to brick and mortar continues at a furious pace.

The first half of this year has seen a flurry of activity from meal kit companies going into grocery stores. Chef’d and Blue Apron started selling in Costcos. Plated is rolling out nationwide at Albertsons. And just a couple of weeks ago, Kroger bought Home Chef for $200 million to put that company’s product on store shelves. And that doesn’t even count the meal kits WalMart and Amazon have available in their own stores.

It’s not hard to see why. According to Nielsen, last year in-store meal kits generated $154.6 million in sales, and grew more than 26% year-over-year. It’s a hot sector, and in-store meal kits are something customers want.

Last month, Pat Brown, Albertsons Vice President of strategic business initiatives told CNBC: “Our internal research told us that 80 percent of our customers would love to see a meal kit option in the store. And what was more surprising was that 85 percent of customers that were already subscribing to meal kits wanted to see meal kits in the store.”

Customer churn has been a big issue for meal kits in the past as the cost and inconvenience of waiting for your meals to arrive by mail have been stumbling blocks for maintained meal kit subscriptions. Having meal kits in stores offers customers more convenience and more choice closer to when they actually make meals.

HelloFresh CEO Dominik Richter told The Journal that online subscription will continue to drive sales, and that going into grocery aisles was a way for the company to find new customers. He also said that HelloFresh is in talks with other retail outlets.

HelloFresh recently surpassed Blue Apron as the top meal kit company by market share in the U.S.. The Berlin-based company went public in the fall of last year, and in April the company acquired organic meal kit provider Green Chef.

This is a big and fast retail move for HelloFresh, which will start selling meal kits on store shelves starting this Wednesday. For comparison, Chef’d has done deals with numerous regional chains as well as Costco, Blue Apron is in 17 Costcos, and Plated will be in “hundreds” of Albertsons by the end of the year. Kroger, which had already rolled out meal kits to some of its regional chains such as QFC in Seattle, is planning to put meal kits in most of its 2,800 stores nationwide.

Clearly HelloFresh needs to act fast as the window of opportunity for meal kit companies in grocery stores appears to be closing rapidly. While it may be rolling out judiciously, Albertsons still owns Plated, so that will be its preferred meal kit provider. Same with Kroger and Home Chef. Amazon, of course, has Whole Foods, and WalMart has… itself. To stay alive in retail, and by extension alive as a business, HelloFresh will need to get into a lot more grocery stores.

HelloFresh Acquires Green Chef to Bolster Meal Kit Menus

Meal kit delivery company, HelloFresh, announced today that it has acquired Green Chef, which offers certified organic meal kits. The move will help diversify HelloFresh’s meal catalog with organic, vegan and gluten-free menus. Terms of the deal were not disclosed.

The acquisition comes at an interesting time for the entire meal kit by mail space. Just last week Blue Apron, which has had a rough year after pioneering meal kit subscriptions, said they will start selling meal kits in stores in a bid to move beyond just mail order.

But the health of Blue Apron almost doesn’t matter anymore. HelloFresh may well be able to offer specialized meals like Paleo and Keto with this acquisition, but there are a lot of companies providing specialized meal services: Purple Carrot is vegetarian, First Chop only sends meat, Little Spoon does baby food, to name a few.

In addition to variety, customers also want convenience. The hard part with mail order meal kits is that you still have to do a lot of work to actually make the meal, and you’re locked into a meal choice that you might not still want in between the time you clicked send and the time it arrives.

HelloFresh faces convenience competition on two big fronts. First, there are the up-and-coming smart appliance makers like Mealhero, Tovala and Suvie. They offer meal kits plus a way to automatically cook everything all at once, in one device, drastically reducing the amount of work required.

Then HelloFresh has to contend with the growing wave of prepared meal kits provided directly in stores. Amazon, Walmart, and even Weight Watchers offer their own lines of meal kits that you can pick up at a store or that you can have delivered same day. These kits do a lot of the prep work for you, and allow you more freedom to choose the meal you’re in the mood for at that moment.

Meeting consumers where they are at is a smart move, and that’s what HelloFresh is doing with Green Chef. The trick for the company will be to increase the convenience as it expands its variety.