Nestlé UK has become the latest food manufacturer to start selling directly to consumers during the coronavirus pandemic.
The food and drink giant has joined forces with Deliveroo’s Essentials delivery platform so that UK consumers can have a variety of its brands delivered to their door. These include KitKat bars, Fruit Pastilles, San Pellegrino, tins of Nescafé Azera, and Nescafé Cappuccino sachets.
Orders are placed via the Deliveroo app with deliveries currently available from 11 sites in Leeds, London, Manchester and Nottingham.
Alexandre Manoukian, e-commerce lead for Nestlé Professional, said: “With people not able to just pop to the shop as easily on their lunch break for their favourite drink or snack, it made complete sense for us to be able to work with Deliveroo to bring it directly to their door.”
Arabella Jenkins at Deliveroo added: “When you can’t justify popping to the shop just for a KitKat to get you through the final hours of your working day, Deliveroo is here to deliver a range of Nestlé snacks and drinks to your door in as little as under 30 minutes.”
Some of the biggest names in food manufacturing have already turned to the direct-to-consumer (DTC) channel in recent months, partly to replace lost revenue from the closure of some retail stores and most hospitality venues during the pandemic. This includes PepsiCo rolling out new websites selling its snacks and drinks in the US, and Kraft Heinz launching an e-commerce operation giving consumers a chance to buy its beans, soups, sauces, and baby food from its Heinz to Home website.
Analysts expect more manufacturers to follow as they look for new ways of getting their products into people’s homes during the current crisis.
Last month, Nestlé’s Chief Executive Mark Schneider highlighted that DTC had recently been growth key area for its business. “I think some of that will be here to stay. One of the side effects of this crisis will be it will be a breakthrough event when it comes to e-commerce for food and beverage,” he said.
“Food and beverage categories have tended to be somewhat slower when it comes to e-commerce, compared to, for example, books or consumer electronics. I think some of that is changing now because people see the convenience of e-commerce in food and beverage as well.”
NAM Implications:
- DTC is a natural for suppliers with portfolios of sufficient size.
- Key issue will be the inclusion of smaller companies as expertise/efficiency grows…
- …and in the process eating even more into the hospitality business.
