Nestlé has continued its push into the growing direct-to-consumer (DTC) market with the acquisition of SimplyCook, a recipe kit firm based in the UK.
The move comes just over three months after the world’s largest food company bought a majority stake in British recipe box company Mindful Chef and prepared meal delivery service Freshly in the US.
Nestlé did not reveal what it is paying for SimplyCook but said the deal “offers significant growth opportunities” amid increasing interest of consumers in food as well as subscription services.
The DTC market has expanded rapidly during the pandemic as people consumed more food and drink at home. Over the last year, the likes of AB InBev, PepsiCo, Symington’s, Heinz, and Barilla have all started DTC initiatives to tap into the growing demand for home delivery.
SimplyCook was founded by Oli Ashness in 2014. It has since experienced rapid growth and as well as delivering recipe kits direct to consumer’s homes, the firm has secured retail listings with the likes of Tesco, Asda, and Waitrose.
Nestlé stated that SimplyCook will continue to be led by its founding team from its base in London with the support of the Swiss group’s wider expertise and operations.
Stefano Agostini, CEO for Nestlé UK & Ireland commented: “This is an ideal partnership for both parties as Nestlé continues to transform its portfolio and SimplyCook accelerates its growth.
“There is a growing demand for great tasting, nutritionally balanced food and this move underlines our focus on investing in businesses with attractive growth prospects and acting on current trends.”
Ashness, who is SimplyCook’s Chief Executive, added: “The more we got talking to Nestlé the more we realised that our ambitions and vision for the business aligned with what Nestlé sees as the right path for the SimplyCook business.
“Nestlé’s experience, operational expertise, and international know-how gives us the opportunity to expand further in the UK and beyond, making cooking more accessible for millions more consumers in far less time than we previously imagined.”
NAM Implications:
- A win-win for SimplyCook and Nestlé…
- Apart from a shot in the arm for DTC…
- This train is gathering speed…
- i.e. to spell it out: last chance to leap aboard?
