Woolworths is taking a 9 per cent stake in subscription-based meal kit provider Marley Spoon as part of a A$30 million strategic partnership announced last week.
Founded in Berlin in 2014, Marley Spoon entered the Australian market in 2015 and competes against subscription-based meal kit provider HelloFresh.
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The deal includes $23 million investment in Marley Spoon via senior secured convertible note and issue of Marley Spoon shares ($7 million). The issue of shares will result in Woolworths Group owning approximately 9 per cent of Marley Spoon and the convertible note is structured to allow Woolworths Group to participate in the growth of the Australian business.
The companies said they will work collaboratively to grow both the Marley Spoon and Dinnerly brands in Australia, and to build operational synergies, with an initial exclusive term of five years.
Marley Spoon will work with the Woolworths sourcing and supply chain teams and gain access to Woolworths’ customer base.
While Woolworths said it will be able to gain valuable insights from Marley Spoon’s market experience as it looks to complement its current customer offering online by promoting Marley Spoon’s meal kits service through the partnership.
Brad Banducci, CEO of Woolworths Group said: “This partnership gives Woolworths exposure to the high-growth ready-to-cook meal kits segment and aligns with our ongoing goal of meeting our customers’ needs for healthy and convenient meal solutions.”
“Marley Spoon has demonstrated it has a customer focused, innovative and entrepreneurial culture and we are excited to partner with them.”
Fabian Siegel CEO of Marley Spoon said: “As grocery spending shifts to online, home-delivered meal kits will play an increasingly large role in helping consumers save time with their weeknight meals.”
“We see this partnership delivering important benefits to both Marley Spoon and Woolworths, with both parties incentivised to grow Marley Spoon’s business in Australia.”
“We have chosen to partner with Woolworths because it’s clear they understand what scale-up businesses need. Despite their size, they have a genuine partnership mentality, offering us support to grow the business whilst empowering us to run our own race.”