Dive Brief:
- HelloFresh announced Wednesday its largest product investment to date, with a $70 million investment.
- The investment aims to “accelerate innovation” across the meal kit company’s entire offering, with changes as soon as the coming months, Assaf Ronen, group president of HelloFresh, said in a statement. It will focus on four main areas: increased variety, healthy ingredients, convenience and improved customization.
- HelloFresh’s changes aim to meet the needs of customers who want to cook and those who are seeking out a “quick, wholesome meal in minutes,” Ronen said.
Dive Insight:
Consumer craze around meal kits has fallen since the height of the COVID-19 pandemic, but HelloFresh said Wednesday it is looking to revive interest through a “comprehensive product innovation plan” that focuses on consumer-facing offerings.
HelloFresh is adding more than 100 weekly menu options to provide a wider selection of global dishes. The meal kit company is also incorporating higher quality proteins and upping portion sizes by tripling the amount of seafood, adding premium steak cuts and increasing chicken portions.
To meet the needs of health-conscious consumers, HelloFresh is expanding its selection of diet-specific recipes and customizable preferences, such as adding more low-calorie and vegetable-heavy meals. The company is also introducing high-protein options and developing recipes that tap into a wider variety of produce.
HelloFresh is introducing more than 25 new “Quick & Easy” meals, which include heat-and-eat, one-pan or “minimal clean-up” options.
Artificial intelligence technology will play a leading role in HelloFresh’s customization efforts, as the tech offers users personalized meal recommendations and a more engaging experience, the company said.
“[W]e’re accelerating innovation across every dimension of our offering – from ingredient sourcing to menu variety and digital user experience. With this launch, our product will change more in the coming months than it has in the last ten years,” Ronen said.
HelloFresh’s $70 million investment over this year is part of parent company HelloFresh Group’s €300 million ($349.7 million) efficiency program, which allows for reallocation of capital towards customer-centric initiatives.
This push to modernize offerings comes after HelloFresh has cut more than 1,500 jobs since 2024 as the company struggles to find its footing post-pandemic.
This funding follows a rough patch for HelloFresh that was littered with layoffs. In January, Arizona WARN notices filed indicated more than 560 workers would be laid off and, a couple of months later, a Texas facility closure led to nearly 300 job cuts. Meanwhile, last year saw the closure of several distribution centers, including one in the Atlanta area that led to more than 700 layoffs.
In February, then-CFO Christian Gartner told investors that “direct labor productivity improvements in North America have helped to stabilize contribution margin” and that site closures were part of HelloFresh’s larger cost-cutting program.
Year to date, HelloFresh’s stock is down more than 24%.
