HelloFresh Moves into Ahold Supermarkets

Beginning this month, HelloFresh meal kits will become available in 600 Giant Food and Stop & Shop locations in the Northeast and Mid-Atlantic regions. The kits were previously sold only via HelloFresh's online subscription service.

Merchandised in store deli sections, the meal kits contain pre-cut, pre-measured and pre-washed ingredients in servings for two people that take less than 30 minutes to prepare and cook. Recipes include chickpea couscous, paprika chicken, peppercorn steak, Mediterranean style chicken and homestyle meatloaf. Prices range from $14.99 to $19.99 per kit.

For the retailers, which are both owned by Ahold Delhaize, introducing HelloFresh meal kits is part of a larger plan involving the addition of other prepared foods and convenience options to in-store hot bars and quick-serve stations. According to The Wall Street Journal, the move is the largest in-store launch of pre-portioned meal kits.

"As we look to expand prepared food, the partnership with HelloFresh was a natural fit," said Tonya Herring, vice president of merchandising for Giant. "For customers that may not have much time to spend cooking, these fresh and delicious meal kits are a great convenience."

According to Packaged Facts, sales of online meal kits in the U.S. hit $4.7 billion in 2017, a 210% increase over the $1.5 billion generated in 2016. In stores, meal kit sales grew 26.5% over the past year to $154.6 million, per Nielsen.

But the foray into retail means that meal kit suppliers may not be happy with the performance of their online subscription businesses alone.

HelloFresh officials said they decided to sell their kits through Giant/Stop & Shop because of their location on the East Coast, where shoppers tend to want more convenience-oriented meals, according to the WSJ article. HelloFresh is also speaking told other retailers.

There are other indications that meal kit suppliers may be struggling to keep home-delivery customers. Kroger announced last month that it was buying Chicago-based Home Chef and would market those products next to its proprietary options. Albertsons' Inc. bought Plated last September, and industry leader Blue Apron has started selling through Costco.

Amazon.com and Walmart also offer meal kits. Walmart announced this spring that it would expand its offerings with products endorsed by Martha Stewart and Oprah Winfrey.