USA TODAY International Edition
Amazon looking to cash in on meal- kits market
Amazon is poised to enter the $ 2.2 billion market for meal kits.
The Seattle- based e- commerce giant is trying to trademark the slogan, “We do the prep. You be the chef,” according to the U. S. Patent and Trademark Office.
In the July 6 filing, Amazon says its tag line is for “prepared food kits,” composed of meat, poultry, seafood, produce, sauce and seasonings” as well as “frozen, prepared, and packaged meals,” which also includes salads, soups, grains, rice, noodles, pasta and bakery products.
Amazon already has made a huge play in the food industry with its June 16 offer to buy organic foods giant Whole Foods Market for $ 13.7 billion.
The company could not be reached for comment.
Blue Apron, the best- known name in meal kits, went public June 29 with an opening price of $ 10 per share, down from the $ 15 to $ 17 per share it had initially sought.
And in light of the Amazon news, Blue Apron stock fell more than 10% Monday, closing at $ 6.59.
This type of food prep — premeasured, fresh ingredients delivered to homes — will see annual growth of 25% to 30% over the next half- decade, Chicago- based food industry consulting firm Pentallect says.
Despite their growing popularity, only an estimated 5% of U. S. households use meal kits, according to research firm NPD Group.
Part of the problem has been the price, but with Amazon coming on the scene, that could change.
The online retailer is known for offering low prices. Once the Whole Foods deal goes through, it’ll have a strong grocery backbone to plant a stake. Throw in well- established logistics and delivery systems and Amazon is poised to be a real meal- kits player.
“It makes perfect sense that as online grocery shopping grows it will drive the adoption of meal kits,” said Darren Seifer, food and beverage industry analyst at The NPD Group.
“Online grocery shoppers can save time by not having to search through multiple websites, and they both work hand- in- hand in meeting the consumer’s need for convenience with the delivery of a fresh meal they can prepare at home.”
Whole Foods spokeswoman Brooke Buchanan declined to comment.