WOOLIES SELLS MARLEY SPOON STAKE
WOOLWORTHS has made a big U-turn by selling its stake in meal kit delivery group Marley Spoon for $54m.
The supermarket giant disclosed on Tuesday that it has sold 28 million Marley Spoon shares, two years after buying a stake through its venture division W23 Investments.
At the time of its investment, Woolworths pledged to work with the nation’s second largest meal kit delivery service. But now, the retailer says it no longer “fits squarely within the investment criteria of W23”.
Woolworths said it remained “committed to the ongoing growth alliance” with Marley Spoon, which operates in the US and
Europe as well as Australia.
The retailer kicked off its alliance and investment in Marley Spoon in 2019, banking on an equity stake and marketing alliance with Marley Spoon to give it a fast track into the expanding meal home delivery sector.
Woolworths’ partnership included a $30m investment.
At the time of
Woolworth’s investment, chief executive Brad
Banducci said the partnership aligned with its goal of meeting customers’ needs for healthy and convenient meal solutions.
A spokesman for W23 said: “Marley Spoon experienced strong growth over the term of W23‘s investment and has matured into an established listed company and no longer fits squarely within the investment criteria of W23.”
Woolworths shares closed down 0.6 per cent at $40.49.