Woolies joins food revolution

WOOLWORTHS has made a $30 million investment in Marley Spoon as part of a broader alliance between the grocer and the meal delivery group.

It marks a leap by the nation’s biggest supermarket chain into the fast-growing $500 million meal kit delivery sector.

The supermarket heavyweight is taking a 9 per cent stake in the ASX-listed German meal company.

Marley Spoon, the second biggest player in the meal kit sector, last year sold more than 15 million meals in Australia, Europe and the US.

Marley Spoon shares surged after the alliance with Woolworths was announced, closing 30c up at 74c.

Woolworths said its initial five-year agreement includes the purchase of $7 million Marley Spoon shares, meaning it can directly participate in the growth of its Australian offerings.

It is the first time a major Australian supermarket chain has joined forces with a meal kit delivery business.

Companies such as Marley Spoon, rival HelloFresh and food delivery UberEats are shaking up the food service market, especially as timepoor consumers opt to order online and have meals delivered to their homes or workplaces rather than go to stores.

Woolworths chief Brad Banducci said the partnership gave it exposure “to the highgrowth ready-to-cook meal kits segment and aligns with our ongoing goal of meeting our customers’ needs for healthy and convenient meal solutions”.

“Marley Spoon has demonstrated it has a customer-focused, innovative and entrepreneurial culture and we are excited to partner with them,” he said.

Marley Spoon chief Fabian Siegel said grocery spending was shifting to online, and delivered meal kits would play “an increasingly large role in helping consumers save time”.