Foodservice

Nestle acquires meal delivery service Freshly

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November 2, 2020

Nestlé S.A. has acquired Freshly, a fresh-prepared meal delivery service in the U.S. for up to $1.5 billion, according to a press release. The deal values Freshly at $950 million, with potential earnouts up to $550 million contingent to the successful growth of the business.

"Consumers are embracing ecommerce and eating at home like never before," Steve Presley, Nestlé chairman and CEO, said in the press release. "It's an evolution brought on by the pandemic but taking hold for the long term."

Nestlé purchased an approximately 16% stake in Freshly in 2017 as a strategic move to evaluate and test the burgeoning market.

Growing year-over-year since launching in 2015, Freshly is now shipping more than one million meals per week to customers in 48 states. Its 2020 forecasted sales are $430 million.