Blue Apron: What's Killing The Iconic Meal-Kit Company?




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ORIGINAL POST

Posted by Ed 2 mths ago
Blue Apron: What's Killing The Iconic Meal-Kit Company?


An article I recently wrote about the meal-kit industry — Demise Of Chef'd Points To Stark Choice Of Meal-Kit Companies: Get Acquired, Or Die — outlined the fact that most meal-kit companies operating are unprofitable. The article proved popular with readers, but over 40 executives from meal-kit companies reached out to me in an attempt to explain why they're different.

None succeeded.

The cold, hard truth of the meal-kit industry is that regardless of the statistics estimating that the meal-kit industry will grow to $11.6 billion by 2022, meal-kits offered by companies like Blue Apron are falling out of favor with consumers. Blue Apron's latest earnings results prove that the demise of Chef'd was not an isolated incident.

Chef'd was the proverbial canary in the coal mine indicating danger was ahead for the meal-kit industry. Blue Apron just proved more meal-kit companies will suffer the same fate as Chef'd, including Blue Apron.


Blue Apron reported Thursday that customers fell by 24% in the second quarter, reversing gains made in the first quarter. The number of consumers purchasing its meal kits dropped 9% from the first quarter to 717,000. The average order value also decreased to $57.34.

Fewer customers led to a 25% decrease in revenue for the period ending June 30. Blue Apron reported $179.6 million in sales, missing even the lowest analyst estimate, according to data compiled by Bloomberg. The company’s loss also widened to $32.8 million, or 17 cents a share.

https://www.forbes.com/sites/brittainladd/2018/08/02/killing-blue-apron-can-anything-save-the-iconic-meal-kit-company/#2003bed2660d

COMMENTS

Ed 2 mths ago
Demise Of Chef'd Points To Stark Choice For Meal-Kit Companies: Get Acquired, Or Die

Meal-kit company Chef'd announced on Monday that it was suspending operations effective immediately. Founder and CEO Kyle Ransford made the announcement to employees via email the same day.

The announcement that Chef'd is going out of business may come as a shock: The company announced in June that it had entered into an agreement to sell its meal kits in 30 Walgreens and Duane Reade stores in the New York City area.


Chef'd had tremendous potential. What Chef'd didn't have was capital.

I understand better than most what happened to Chef'd because CEO Kyle Ransford contacted me several months ago seeking my advice.

Full disclosure: Executives from Blue Apron and other meal-kit companies have also contacted me this year seeking my advice on how to raise more capital, optimize the supply chain, reduce costs, improve operations and build the brand.

The opinions and comments expressed by me in this article have been public for months and, in some cases, over a year.

https://www.forbes.com/sites/brittainladd/2018/07/18/the-meal-kit-company-chefd-is-no-more-what-does-it-mean-for-the-meal-kit-industry/#76d5723011bf


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