Kroger Cranks Up the Heat in Meal Kit Competition
(Bloomberg) -- Blue Apron dipped as Kroger dove deeper into the meal-kit game today with the rollout of offerings from recent acquisition Home Chef.
Shares of Blue Apron fell as much as 5.1 percent and fellow meal-kit pioneer HelloFresh also dropped 0.7 percent. Kroger rose as much as 1.8 percent.
Today’s debut of weekly rotating in-store meal kits follows Kroger’s May purchase of Home Chef after the grocer had been testing the sale of its own meal kits at hundreds of stores. The $200 million acquisition provided Kroger with access to data that comes with a direct-to-consumer e-commerce business, tools that will help the company to quickly scale its meal-kit operation.
The Home Chef meal kits will first be available at some locations in states including Illinois, and Wisconsin. The supermarket chain also announced plans to roll out a limited market test of Home Chef Express, a meal kit ready to eat in about 15 minutes.
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