Meal kit provider’s fresh expansion
HELLOFRESH Australia is eyeing continued expansion throughout the continent with management hungry to take a bigger slice out of the $102 billion food and groceries industry.
The German business is the largest home deliveredmeal kit provider in Australia. It has an annual revenue run rate slightly exceeding $200 million per year.
The overall market is worth about $300 million per year but this number is constantly growing in size as more Australians opt for the convenience of pre-planned meals.
HelloFresh first opened in Australia six years ago and has quickly grown to now employ 300 people and comprise about 70 per cent of the local market.
“We are extremely happy with the Australian market, we are not growing at three digit per cent year on year anymore, but very high double digit growth,” co-founder and global chief executive Thomas Griesel told the Gold Coast Bulletin.
“Given the size that we are at now in absolute terms it’s obviously very significant growth.”
HelloFresh Australia shipped half-a-million meals per week in March and is now expanding its services into regional NSW.
“We have pretty much filled the entire coastline now … Northern Rivers was an area we turned on last year,” HelloFresh Australia CEO Tom Rutledge said.
“As we develop the capability of our suppliers, especially our logistic providers, we have been able to move into more areas, but it’s important to note our growth isn’t because of that regional expansion.”
Last month parent company HelloFresh, which listed on the Frankfurt Stock Exchange in November 2017, reported a 52 per cent spike in revenue to €905 million ($1.45 billion) in the 2017 financial year.
Mr Griesel said at a global level HelloFresh is now increasing the amount of personalisation of meal kits for customers by giving them more choices.
And Mr Rutledge believes there is still room to grow in Australia, despite the rise of competitors like Marley Spoon, Youfoodz, Gourmet Dinner Service and Muscle Meals Direct.
“We haven’t seen a slowdown (in new customer growth) as a consequence of saturation,” he said.