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HelloFresh

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HelloFresh SE
Company typePublic (Societas Europaea)
ISIN
IndustryMeal kit
FoundedNovember 2011; 13 years ago (2011-11)
Founders
  • Dominik Richter
  • Thomas Griesel
  • Jessica Nilsson
Headquarters
Berlin
,
Germany
Key people
  • Dominik Richter (CEO)
  • Thomas Griesel (COO)
  • Christian Gartner (CFO)
  • Maximilian Backhaus (CMO)
RevenueIncrease €5.99 billion (2021)[1]
112,500,000 Euro (2023) Edit this on Wikidata
19,400,000 Euro (2023) Edit this on Wikidata
Total assets2,581,300,000 Euro (2023) Edit this on Wikidata
Number of employees
14,635 FTE[1] (2021)
Website

HelloFresh is a German meal-kit company based in Berlin. It is the largest meal-kit provider in the United States,[2] and also has operations in Australia, Canada, New Zealand and Europe (Germany, Austria, Switzerland, Belgium, Netherlands, Luxembourg, France, Italy, Ireland, Spain, Scandinavia and United Kingdom).[3]

It has been listed on the Frankfurt Stock Exchange since its IPO in November 2017.[4] At the end of 2022, the company had approximately 7.1 million active customers worldwide, including 3.4 million in the U.S.[5]

History

HelloFresh was founded in November 2011 by Dominik Richter, Thomas Griesel, and Jessica Nilsson in Berlin, Germany.[6] Richter and Griesel packed and hand-delivered to the first 10 customers.[7] It was one of the earlier companies in the meal-kit industry.[8] They were initially funded by Rocket Internet, a German startup studio company. They first started delivering meal kits to paying customers in early 2012, and expanded to the Netherlands, UK, US and Australia the same year. By 2014, the company claimed to be delivering 1 million meals per month.[6] They raised $50 million in a 2014 funding round, after having raised $10 million in 2012, and $7 million in 2013.[8]

By March 2015, the company had 250,000 subscribers, although it was still not profitable.[9] In September of that year, it was valued at €2.6 billion in a funding round where it raised €75 million, making it a unicorn company.[9] The company was still majority-owned by Rocket Internet at that time. It cancelled a planned IPO in November, due to concerns about the company's proposed value.[10] It experienced significant growth during the year, with 530,000 subscribers by the end of October.[11] It had 750,000 subscribers by July 2016,[12] and 1.3 million by the third quarter of 2017.[13]

In October 2017, the company announced a planned IPO on the Frankfurt Stock Exchange to raise $350 million.[13] On November 2, the company completed its IPO, valuing it at €1.7 billion.[14] At the time of its IPO, the company had a market capitalization of more than double Blue Apron, its largest US-based competitor.[15]

In March 2018, HelloFresh acquired Green Chef, a US organic meal-kit company.[2] In October 2018, Toronto-based HelloFresh Canada acquired Chefs Plate, a Canadian meal-kit company.[16]

In 2019, Rocket Internet sold its remaining stake in HelloFresh by accelerated book building to international institutional investors.[17][18] Rocket Internet had held a 30.6% stake in HelloFresh, as of the end of 2018.[19]

In 2020, HelloFresh acquired ready-made meal company Factor75 (since rebranded to just Factor) for up to $277 million. Factor75 was started in Batavia, Illinois in 2013 by Mike Apostal and Nick Wernimont. At the time of the acquisition, it had grown to a $100 million company.[20][21]

In April 2022 HelloFresh launched in Japan, the first Asian market for the meal box provider. Just 8 months later on December 20, 2022, HelloFresh announced their withdrawal from Japan with the CEO Thomas Griesel admitting failure in his ability to drive reasonable ROI. Employees were notified of their layoffs with less than the legal 30-day notice period.[22] On September 27, 2023, HelloFresh filed for bankruptcy in the Tokyo District Court with total debt of 3 billion yen.[23]

On November 17, 2022, HelloFresh launched in Spain under the name HelloFresh SE, promising to use "100 percent Spanish raised beef, chicken and pork."[24] The following year, they announced that they would cease importing coconut milk from Thailand, following an investigation by People for the Ethical Treatment of Animals which accused Thai farmers of forcing southern pig-tailed macaques to harvest coconuts.[25]

HelloFresh announced in August 2023 they would expand their Factor ready-to-eat brand into Europe, starting with the Netherlands.[26]

On January 11, 2024, after an investigation begun in 2022, HelloFresh was fined £140,000 by the UK's Information Commissioner's Office (ICO), for sending millions of spam texts and emails, and contacting customers even after being asked to stop.[27]

Corporate affairs

The key trends of HelloFresh are (as at the financial year ending December 31):[28]

Year Revenue (€ bn) Net income (€ m) Employees
2017 0.9 –92 2,715
2018 1.2 –83 4,276
2019 1.8 –10 4,477
2020 3.7 369 6,432
2021 5.9 256 14,635
2022 7.6 127 19,595
2023 7.5 19 19,012

Business

HelloFresh's business model is to prepare the ingredients needed for a meal, and deliver them to customers, who must then cook the meal using recipe cards,[29] which can take around 30–50 minutes. It generally provides about three two-person meals a week for about $60 to $70.[8] Each week, about 45 recipes are offered for users to choose from.[30] In several markets, HelloFresh provides "Rapid Box" meals which take only 20 minutes to prepare.[31] Their Factor brand competes in the ready-to-eat market, with not-frozen meals requiring about 2 minutes of preparation.[20]

HelloFresh previously offered a wine-subscription service, based on that of its competitor Blue Apron.[32] This subscription, HelloFresh Wine Club started at $14.83 per bottle or $89 for the whole month (includes 6 bottles of wine). With the Wine Club, customers could also pick between All Reds, All White, or a Mixed Box (Red and White) for their wine.[33]

In March 2018, HelloFresh announced their acquisition of Green Chef, a USDA-certified organic meal-kit company. HelloFresh planned to use the acquisition to offer the largest selection of meal plans and diets for consumers on the market, adding Green Chef's organic vegan and gluten-free menus, including those plans compliant with Paleo and Keto diets.[34] In 2020, HelloFresh acquired ready-made meal company Factor75 (since rebranded to just Factor) for $277 million. Factor was founded in 2013 and produces fresh pre-cooked meals with a focus on health and nutrition.[35][36][37]

The company's US operations were responsible for 60% of revenues as of November 2017, and it has approximately 44% of the American market.[14]

HelloFresh has operations in the United States, Canada, United Kingdom, Australia, Germany, Austria, Switzerland, the Netherlands, Belgium, Luxembourg, Sweden, Norway, Denmark, France, Italy, New Zealand and Spain.[3]

HelloFresh offers partnership opportunities,[38] including in-store, affiliate, and corporate partnerships.[39]

Union drives

Warehouse workers for HelloFresh in Aurora, Colorado, and Richmond, California, initiated a union drive with UNITE-HERE in September 2021.[40] HelloFresh management responded by hiring Kulture Consulting, a "union avoidance"[41] consulting firm.[40] Workers were compelled to attend captive audience meetings with anti-union messages.[41] The Aurora election was held on November 22, and Richmond held its election on December 15; workers in both places voted decisively against unionization amid accusations of the company's interference and intimidation in the campaign, with the union contesting the results in Aurora.[41][42] In Newark and Totowa, New Jersey, HelloFresh workers are unionizing with Brotherhood of Amalgamated Trades.[43][needs update]

Climate labeling

In November 2021, HelloFresh launched their Climate Labeling Initiative. This labeling is to let consumers know when recipes are producing up to 85% less CO2e emissions. The initial launch was in Germany and expanded to ten other countries by late 2022.[44]

References

  1. ^ a b "HelloFresh Annual Report 2021" (PDF). HelloFresh SE. March 6, 2022. p. 3. Retrieved April 27, 2022.
  2. ^ a b Molla, Rani (March 26, 2018). "HelloFresh is now bigger than Blue Apron in the U.S." Recode. Retrieved August 8, 2018.
  3. ^ a b "About us". www.hellofreshgroup.com. Retrieved June 5, 2022.
  4. ^ "Deutsche Börse Group - HelloFresh SE listed on the Frankfurt Stock Exchange today". www.deutsche-boerse.com. Retrieved May 1, 2023.
  5. ^ "HelloFresh & Blue Apron: customer base 2022". Statista. April 12, 2023. Retrieved July 5, 2023.
  6. ^ a b Li, Charmaine (August 7, 2014). "Why Berlin meal delivery startup HelloFresh just raised $50m". Tech.eu. Retrieved February 7, 2018.
  7. ^ "Our story". HelloFresh Group. Archived from the original on April 27, 2019. Retrieved March 13, 2018.
  8. ^ a b c de la Merced, Michael J. (June 18, 2014). "HelloFresh, a Meal Delivery Start-Up, Raises $50 Million". DealBook. The New York Times. Retrieved February 7, 2018.
  9. ^ a b Vasagar, Jeevan (September 17, 2015). "Funding round values German grocery start-up HelloFresh at €2.6bn". Financial Times. Retrieved February 7, 2018.
  10. ^ Huebner, Alexander; Burger, Ludwig (November 8, 2015). "Meal delivery firm HelloFresh puts IPO on hold". Reuters. Retrieved February 7, 2018.
  11. ^ Schuetze, Arno; Hübner, Alexander (October 28, 2015). "Loss-making online meal delivery firm HelloFresh plans to go public". Business Insider. Archived from the original on March 18, 2017. Retrieved February 7, 2018.
  12. ^ Vines, Richard (July 20, 2016). "A Michelin-Star Chef Tests Four Home-Cooking Delivery Services". Bloomberg L.P. Retrieved February 7, 2018.
  13. ^ a b Bray, Chad (October 10, 2017). "HelloFresh, the Meal Delivery Service, Pursues I.P.O. in Frankfurt". The New York Times. Retrieved February 7, 2018.
  14. ^ a b "HelloFresh Is Worth Much More to Investors Than Blue Apron". Fortune. Reuters. November 2, 2017. Retrieved February 7, 2018.
  15. ^ Auchard, Eric; Schuetze, Arno (November 2, 2017). "UPDATE 2-HelloFresh's bright start contrasts with Blue Apron struggles". Reuters. Retrieved March 7, 2018.
  16. ^ Redman, Russell (November 28, 2018). "HelloFresh eyes bigger slice of Canadian meal kit market". supermarketnews.com. Retrieved December 13, 2018.
  17. ^ Snoeck, Jorg (September 19, 2019). "Rocket Internet sees profits almost double". Retail Detail EU.
  18. ^ EQS Group (May 13, 2019). "DGAP-News: Rocket Internet SE: Rocket Internet intends to place its entire shareholding in HelloFresh SE".
  19. ^ "Interim Condensed Consolidated Financial Statements for the Period January 1 to June 30, 2019" (PDF). September 19, 2019. The decrease of investments in associates by EUR 232.8 million primarily originates from the disposal of shares in HelloFresh and Westwing[permanent dead link‍]
  20. ^ a b Zlatopolsky, Ashley (January 4, 2024). "We Tried Factor Meals: Here's Our Review". Sports Illustrated. Retrieved January 26, 2024.
  21. ^ "HelloFresh plans to buy US meal delivery company Factor for up to $277 million". Tech.eu. November 23, 2020. Retrieved January 26, 2024.
  22. ^ "HelloFresh silently retreats from Japan". RetailDetail EU. December 23, 2022. Retrieved January 26, 2024.
  23. ^ "ハローフレッシュ・ジャパン合同会社 | TSR速報 | 倒産・注目企業情報 | 東京商工リサーチ". www.tsr-net.co.jp (in Japanese). Retrieved January 26, 2024.
  24. ^ Galler, Grace (November 17, 2022). "HelloFresh lands in Spain". New Food US.
  25. ^ Martinez, Jose (March 16, 2023). "HelloFresh Halts Use of Coconut Milk From Thailand Due to Forced Monkey Labor Claims". Complex. Complex Networks. Retrieved March 19, 2023.
  26. ^ "HelloFresh Launches Ready-To-Eat Brand 'Factor' In Europe". ESM Magazine. August 16, 2023. Retrieved January 26, 2024.
  27. ^ "HelloFresh fined over millions of spam texts and emails". BBC News. January 12, 2024. Retrieved January 26, 2024.
  28. ^ "HelloFresh Fundamentalanalyse | KGV | Kennzahlen". boerse.de (in German). Retrieved March 25, 2024.
  29. ^ "What's in the box?". HelloFresh Canada. Archived from the original on January 9, 2019. Retrieved January 8, 2019.
  30. ^ "How It Works". HelloFresh. Retrieved March 13, 2018.
  31. ^ Rudd, Andy (January 17, 2018). "Average UK household boasts staggering £415 worth of unused cooking gadgets". Daily Mirror. Retrieved March 13, 2018.
  32. ^ McCoy, Elin (November 3, 2017). "Wine on Demand? Rating Bottles From Blue Apron, Hello Fresh, Caviar". Bloomberg L.P. Retrieved March 13, 2018.
  33. ^ "HelloFresh Wine Club". www.top10.com. April 21, 2020. Retrieved December 19, 2022.
  34. ^ "HelloFresh Acquires Green Chef". www.businesswire.com. March 20, 2018. Retrieved January 5, 2021.
  35. ^ "HelloFresh kauft Factor75 (für 277 Millionen) - ShowHeroes übernimmt Viralize". deutsche-startups.de (in German). November 23, 2020. Retrieved August 17, 2023.
  36. ^ "News Detail". ir.hellofreshgroup.com. Retrieved August 17, 2023.
  37. ^ "Expansion: Hellofresh kauft in USA Anbieter von Fertiggerichten". www.handelsblatt.com (in German). Retrieved August 17, 2023.
  38. ^ "HelloFresh Media Powers a New Era of Sampling and Partnerships". PRNewswire.
  39. ^ "HelloFresh Sales & Corporate Partnerships". Retrieved November 17, 2023.
  40. ^ a b Gurley, Lauren Kaori (September 16, 2021). "HelloFresh Workers Unionize to Improve Brutal Working Conditions". Vice News. Archived from the original on September 16, 2021. Retrieved November 16, 2021.
  41. ^ a b c Sainato, Michael (November 11, 2021). "'Workers are very afraid': HelloFresh employees aim to unionize amid claims of abuse". The Guardian. Retrieved November 16, 2021.
  42. ^ O'Donovan, Caroline (January 18, 2022). "High Injury Rates, Low Wages, And A COVID Outbreak At Work Weren't Enough To Convince HelloFresh Employees They Needed A Union". BuzzFeed News. Retrieved March 6, 2022.
  43. ^ Gurley, Lauren Kaori (October 20, 2021). "Hundreds of HelloFresh Workers Are Unionizing in New Jersey". Vice News. Archived from the original on October 20, 2021. Retrieved November 16, 2021.
  44. ^ Fresen, Natalie (December 19, 2022). "HelloFresh launches climate labelling to help customers make more sustainable choices | Retail Bulletin". Retail Bulletin. Retrieved December 19, 2022.
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