Beer positive for Marley Spoon

MEAL kit delivery service Marley Spoon is building up its cash war chest after teaming up with culinary icon Maggie Beer as its sales continue to soar amid the coronavirus pandemic.

The Hellofresh rival is in a trading halt pending a discounted $56m placement to institutions to fuel its growth.

The Berlin-based subscription service released its September quarter results to the Australian Securities Exchange late on Thursday, showing a 109 per cent revenue jump compared with the same period last year and expectations of a similar full-year result given continued traction in online meal kit sales.

The biggest revenue growth was in the US, up 145 per cent, followed by Australia (84 per cent) and Europe (83 per cent).

The company took a hit from the temporary closure of its Melbourne distribution centre during the strict lockdown, but a Sydney site is being developed and is expected to begin operations in the first half of calendar 2021.

Order frequency and average order sizes were down from their peaks at the beginning of the health crisis but remained above PRE-COVID-19 levels, Marley Spoon said.

“In 2020, many new customers will have experienced the advantages of ordering online and cooking with a meal kit versus going to the traditional supermarket,” chief executive Fabian Siegel said.

The company hopes to attract new customers with Maggie Beer cheese and preserves packs, which begin deliveries from November 23, along with its own festive season menu.