FreshRealm Acquires US Marley Spoon Operational Assets
FreshRealm, the national Fresh Meals platform, has today announced its acquisition of the operational assets of Marley Spoon, a leading global subscription-based meal kit provider. FreshRealm will take over all of Marley Spoon’s US operational and supply chain infrastructure, integrating them into its US-based network. The $24 million transaction includes Marley Spoon’s transfer to FreshRealm of three production and fulfillment facilities in Newark, NJ, Tracy, CA and Dallas, TX. Marley Spoon forecasts the deal to increase margin and reduce cost. Concurrently, Marley Spoon is acquiring bistroMD, a food as medicine subscription service that provides convenient, ready to eat, gourmet meals for health-conscious consumers, which will also join the FreshRealm platform. After closing FreshRealm will fulfill all orders for Marley Spoon U.S. customers nationwide, including for its bistroMD, Martha & Marley Spoon and Dinnerly brands.
FreshRealm’s optimized, channel-agnostic, end-to-end Fresh Meals platform offers services for direct-to-consumer, brick and mortar food retailers, restaurants and other Fresh Meals providers. FreshRealm provides unmatched fresh scale, culinary expertise, fully customized meal options and efficient nationwide fulfillment for short-shelf-life, high-quality products. FreshRealm drives innovation, lowers fixed costs and provides quality while delivering better unit economics for retailers.
Integration with FreshRealm’s platform enables partners to diversify their Fresh Meals offerings while enjoying the benefits of scale at a fraction of the cost. Through this exclusive relationship with Marley Spoon, FreshRealm further strengthens its position as a leader in optimized meal solutions, powering the food industry to deliver Fresh Meals to everyone, every day, everywhere.
“This strategic partnership with Marley Spoon marks a milestone for FreshRealm in shaping the future of the Fresh Meals solutions space and transforming this $900 billion market,” said Michael Lippold, Founder and CEO of FreshRealm. “We are thrilled to empower meal providers like Marley Spoon and bistroMD with what they need to deliver on scale and efficiency. Our partnership will supercharge these established brands’ ability to build innovative offerings for their customers and will lead to broader innovation in the Fresh Meals industry.”
Through its new partnerships with Marley Spoon and bistroMD, as well as existing relationships, such as Amazon Fresh, Blue Apron, Kroger, Publix and Walmart, FreshRealm is uniquely positioned to offer custom-built solutions that address every retailer and consumer need from ready-to-heat and ready-to-cook meals to meal kits and more.
Fabian Siegel, Marley Spoon Founder and CEO said, “I am excited to form this strategic partnership with Michael and his team at FreshRealm. Both of our companies are founder-led, and we both share a passion for delighting our customers as well as driving excellence in processes across the whole organization.”
As FreshRealm continues to grow, it is poised to transform the Fresh Meals industry, a rapidly growing market driven by changing lifestyles, consumer demand for both convenience and quality and an evolving retail landscape. Today’s announcement is another step in FreshRealm’s growth as the go-to partner for providing quality meals that meet the diverse needs of today’s shoppers.
TD Cowen served as financial advisor to FreshRealm.