FreshRealm, a US-based company that produces and delivers ready-made meals, has announced that it has acquired the US operational assets and supply chain infrastructure of Marley Spoon, a global meal kit provider. The deal, which was valued at $24 million, will enable FreshRealm to expand its product portfolio and customer base, as well as to benefit from the economies of scale and efficiency of Marley Spoon’s facilities.
The deal will also involve FreshRealm fulfilling the orders for all of Marley Spoon’s brands in the US, which include Marley Spoon, Martha & Marley Spoon, and Dinnerly. In addition, FreshRealm will also fulfill the orders for bistroMD, a health-focused food as medicine subscription service, which Marley Spoon is in the process of acquiring.
The deal is expected to close by the end of February 2024, subject to customary closing conditions and regulatory approvals.
Who are FreshRealm and Marley Spoon?
FreshRealm is a company that was founded in 2013 by Michael Lippold, a serial entrepreneur and food industry veteran. FreshRealm’s mission is to transform the fresh meals solutions space and to offer convenient, healthy, and delicious meals to consumers and businesses. FreshRealm’s products include ready-made meals, meal kits, snacks, and beverages, which are delivered to customers’ doors or to retail stores. FreshRealm also operates a platform that connects meal providers, such as restaurants, chefs, and brands, with customers, and provides them with the necessary infrastructure, technology, and logistics to deliver their products.
Marley Spoon is a company that was founded in 2014 by Fabian Siegel and Till Neatby, two entrepreneurs with backgrounds in e-commerce and food delivery. Marley Spoon’s vision is to bring delightful, market-fresh, and easy cooking back to the people. Marley Spoon’s products include meal kits, which contain pre-portioned ingredients and recipes, and ready-made meals, which are prepared by chefs and can be heated in minutes. Marley Spoon operates in six markets: the US, Australia, Germany, Austria, the Netherlands, and Belgium.
What are the benefits and challenges of the deal?
The deal is expected to bring several benefits for both FreshRealm and Marley Spoon, such as:
- For FreshRealm, the deal will add new products, capabilities, and technologies to its portfolio, which will enable it to offer more variety and innovation to its customers and consumers. The deal will also strengthen FreshRealm’s market position and competitive edge, as it will tap into the growing demand for meal kits and food as medicine solutions.
- For Marley Spoon, the deal will allow it to focus on its core markets and products, which are more aligned with its global strategy and vision. The deal will also allow Marley Spoon to optimize its production capabilities and resources, and to better serve its customers with its meal kits and ready-made meals.
The deal also poses some challenges for both parties, such as:
- For FreshRealm, the deal will require it to integrate the acquired assets and infrastructure with its existing operations, and to manage the potential operational, financial, and cultural risks involved. The deal will also require FreshRealm to maintain the quality and consistency of the acquired products and brands, and to retain the loyalty and trust of the existing customers and suppliers.
- For Marley Spoon, the deal will entail a loss of revenue and market share from the divested assets, and a possible reduction in its workforce and assets. The deal will also entail a transition period, during which Marley Spoon will have to ensure a smooth handover of the assets to FreshRealm, and to address any issues or concerns that may arise.