grocery chain Albertsons is buying start up company Plated, a meal kit subscription service.
Plated to become a subsidiary
purchase will make Plated a wholly owned subsidiary of Albertsons, but it will continue to operate as a distinct brand and will retain its leadership team. The company, which launched in 2012, has been using data and technology to innovate across the traditional supply chain and has a customer centric model to provide a personalised meal experience for people who are passionate about food.
One aim for the deal is for Plated to become the first omnichannel meal kit service with national scale.
Albertsons, which operates over 2300 stores across 35 states, is committed to improving the way shoppers discover, purchase and experience food. As it focuses on innovation, personalisation and customisation, acquiring a company with leading technology and data capabilities is a strategic move for the retailer and is quicker and easier than building this infrastructure from scratch.
Meal kits a growing focus
With the meal kit market continuing to grow rapidly in North America, retailers have been expanding in this area, both organically and through acquisitions. Metro Canada recently acquired a majority interest in Miss Fresh Inc, a specialist meal kit company, bringing new capabilities into the company and establishing a presence in meal kit subscriptions. The benefit for the meal kit company is access to large store networks, allowing it to expand beyond the online channel and access to investment to accelerate growth and development.