national
local
specialty
dog
AGENDA
Online Market Online Consumer Building Programs Retail Responds
Source: Packaged Facts
$1.5B
US Online Meal Kit Sales, Billions
2017(est.)2016
+210%
Sources: NRA (2017 data); Packaged Facts; Progressive Grocer (2016 data)
$669B
$799B
US Sales, Billions
+4.3%
+3%
$4.7B +210%
Source: Packaged Facts
2017(est.)2016 2022(est.) 2026(est.)
$1.5B $4.7B
$11.6B
$25BUS Online Meal Kit Sales, Billions
Source: Packaged Facts
Almost 75% of consumers are aware of online meal kits…
Sources: Hartman; Packaged Facts
…but less than 20% are active users.
For those that do buy meal kits online,80% are still purchasing after one month.
Source: Cardlytics via CNBC.com
The retention rate drops to 50% after six months…
…and to less than 30% after one year.
$79B
Too expensive
Too time consuming
Food quality not worth the price
Disliked packaging waste
Restaurant trips interfered with usage
Source: Hartman
• 90% of users would recommend kit delivery to their friends
• 81% feel meal kits are healthier than prepared foods
• 46% would buy kits if they were less expensive
• 36% indicate a desire to buy kits at local grocery stores
Source: Packaged Facts; Nielsen
Online Consumer
60%
40%
Sources: Hartman; Packaged Facts
meal kit subscribers
meal kit subscribers
Source: Packaged Facts
Source: Packaged Facts
Source: Packaged Facts
Source: Packaged Facts
“In the last 12 months, where have you
shopped for groceries and fresh foods?”
Source: Packaged Facts
Why meal kits?
Save planning & shopping time
Short prep, cook times
Great way to try new recipes
Healthy
Less food waste
Fun
Source: Packaged Facts; Nielsen
What’s for
dinner
tonight???
What time
should we
eat?
What do
we
have?
Do I have
time/energy to
figure out what
to make?
How much
mess will
it make?
Do I have
all the
ingredients?
Is everyone
hungry?
Is there already
a meal plan in
place?
Do I have
time/energy
to stop at
the store?
Are there any
budget
concerns?
How much
time do I
have ?
How much
energy do I
have?
What can I do
to save time?
Will I feel
appreciated?
What else is
going on?
How hungry
am I?
What do we
want?
What does
my partner
like?
Are we all
eating
together?
What will the
kids eat?
When did
we last
eat that
dish?
How much
work is it
to make?
Is it
healthy
enough?
Should we eat at
home, go out, or
get delivery?
Do we have
wine &
chocolate?
Source: Nielsen
BUILDING the PROGRAM
product
Scalable & specific
Meals for two, meals for more
Offer options with specific dietary focus-vegan, gluten free, kid friendly
Instagram-worthy culinary appeal
Globally inspired dishes that offer approachable new and exotic flavors
Colorful dishes that inspire purchases and social media sharing
Prep time & cooking methods
product
Online kits
average 30-40
minutes prep
product
Online kits tend to use stovetop
and oven cooking methods…
…and require two separate pots or pans
for cooking.
price
Value
Take focus off of the dollar ring
Quantify value- time, quality, fun, culinary appeal
Encourage comparison to foodservice
Profitability
Be thoughtful about ingredient composition
Balanced assortment
placement
Display locations
Grab & go for quick checkout
Near prepared foods, meat, seafood
Who owns the program?
Make it “ours”
Set clearly defined expectations
Online marketplace
promotion
Menu copy
Descriptive and delicious
Clarity & correctness of instructions
In-depth testing with real people
Tasting is believing
Cooking demonstrations can also highlight easy prep
Big picture thinking
What’s for
dinner
tonight???
What time
should we
eat?
What do
we
have?
Do I have
time/energy to
figure out what
to make?
How much
mess will
it make?
Do I have
all the
ingredients?
Is everyone
hungry?
Is there already
a meal plan in
place?
Do I have
time/energy
to stop at
the store?
Are there any
budget
concerns?
How much
time do I
have ?
How much
energy do I
have?
What can I do
to save time?
Will I feel
appreciated?
What else is
going on?
How hungry
am I?
What do we
want?
What does
my partner
like?
Are we all
eating
together?
What will the
kids eat?
When did
we last
eat that
dish?
How much
work is it
to make?
Is it
healthy
enough?
Should we eat at
home, go out, or
get delivery?
Do we have
wine &
chocolate?
Source: Nielsen
RETAIL RESPONDS
KITS
MIX & MATCH READY TO COOK
CURATED DISPLAY
kits
kits
kits
curated display
kits
kits
kits
kits
mix & match
ready to cook
meal solutions
mix & match
curated display
ready to cook
kits
branded partnerships
local partnerships
Meal kits aren't a silver bullet - they’re just one part of
a plan to provide comprehensive meal solutions
Focus on options that are right for you and your customers
Top-notch fresh programs are the starting point