Plated, a meal kit delivery service that revolutionized the way people cook and enjoy meals at home, was acquired by Albertsons Companies in 2017. The acquisition marked a significant milestone in the meal kit industry, and it has been a topic of interest for many entrepreneurs, investors, and food enthusiasts. In this article, we will delve into the details of the acquisition, exploring how much Plated was sold for and what factors contributed to its success.
A Brief History of Plated
Plated was founded in 2012 by Nick Taranto and Josh Hix, two Harvard Business School graduates who shared a passion for cooking and entrepreneurship. The company started as a small operation in New York City, with a mission to provide home cooks with pre-measured ingredients and recipes to create delicious meals. Over the years, Plated expanded its operations, and by 2016, it had become one of the leading meal kit delivery services in the United States.
Key Features and Innovations
Plated’s success can be attributed to several key features and innovations that set it apart from its competitors:
- High-quality ingredients: Plated sourced its ingredients from local farmers and suppliers, ensuring that customers received fresh and sustainable produce.
- Variety of recipes: The company offered a diverse range of recipes, catering to different tastes, dietary preferences, and cooking levels.
- Convenient delivery: Plated’s meal kits were delivered directly to customers’ doorsteps, making it easy for them to cook at home without having to shop for ingredients.
- Sustainable packaging: The company used eco-friendly packaging materials, reducing waste and minimizing its environmental impact.
The Acquisition by Albertsons Companies
In September 2017, Albertsons Companies, a leading grocery retailer in the United States, announced its acquisition of Plated. The deal was valued at approximately $200 million, with Albertsons Companies acquiring 100% of Plated’s outstanding shares.
Rationale Behind the Acquisition
The acquisition of Plated was a strategic move by Albertsons Companies to expand its presence in the meal kit market and enhance its e-commerce capabilities. By acquiring Plated, Albertsons Companies gained access to a loyal customer base, a robust meal kit platform, and a team of experienced professionals in the meal kit industry.
Benefits for Albertsons Companies
The acquisition of Plated provided several benefits for Albertsons Companies, including:
- Increased online presence: The acquisition enabled Albertsons Companies to expand its e-commerce capabilities, allowing customers to order meal kits online and have them delivered to their homes.
- Enhanced customer experience: Plated’s meal kits offered customers a convenient and enjoyable cooking experience, which aligned with Albertsons Companies’ goal of providing excellent customer service.
- Access to new markets: The acquisition provided Albertsons Companies with an opportunity to enter new markets, including the meal kit delivery space, and expand its customer base.
Impact of the Acquisition on the Meal Kit Industry
The acquisition of Plated by Albertsons Companies had a significant impact on the meal kit industry, marking a turning point in the market’s evolution. The deal demonstrated the growing interest of traditional grocery retailers in the meal kit space and highlighted the potential for consolidation in the industry.
Consolidation in the Meal Kit Industry
The acquisition of Plated was followed by a wave of consolidation in the meal kit industry, with several other companies being acquired or merging with larger players. This trend has continued in recent years, with the industry experiencing significant changes in its landscape.
Key Players in the Meal Kit Industry
Some of the key players in the meal kit industry include:
- Blue Apron
- HelloFresh
- Home Chef
- Sun Basket
- Freshly
Conclusion
The acquisition of Plated by Albertsons Companies in 2017 marked a significant milestone in the meal kit industry. The deal, valued at approximately $200 million, demonstrated the growing interest of traditional grocery retailers in the meal kit space and highlighted the potential for consolidation in the industry. As the meal kit industry continues to evolve, it will be interesting to see how companies like Plated and Albertsons Companies adapt to changing consumer preferences and technological advancements.
By understanding the details of the acquisition and the factors that contributed to Plated’s success, entrepreneurs and investors can gain valuable insights into the meal kit industry and its potential for growth and innovation.
What was Plated, and how did it contribute to the meal kit industry?
Plated was a pioneering meal kit delivery service that operated in the United States from 2012 to 2019. Founded by Josh Hix and Nick Taranto, the company aimed to provide customers with pre-portioned ingredients and recipes to prepare home-cooked meals. Plated played a significant role in shaping the meal kit industry, offering a wide range of recipes and ingredients that catered to diverse tastes and dietary preferences.
During its operational years, Plated gained popularity for its high-quality ingredients, user-friendly recipes, and flexible subscription plans. The company’s innovative approach to meal kit delivery helped establish it as a leading player in the market, paving the way for other meal kit services to follow. Although Plated ceased operations in 2019, its legacy continues to influence the meal kit industry.
Who acquired Plated, and what were the acquisition details?
In 2017, Albertsons Companies, a leading American grocery retailer, acquired Plated for approximately $200 million. The acquisition marked a significant milestone in the meal kit industry, as it brought together a traditional grocery retailer and a pioneering meal kit service. The deal aimed to leverage Plated’s expertise in meal kit delivery and Albertsons’ extensive grocery network to expand the reach of meal kits and enhance the overall shopping experience for customers.
Following the acquisition, Albertsons integrated Plated’s meal kits into its stores, allowing customers to purchase meal kits in-store or online for home delivery. The partnership enabled Albertsons to tap into the growing demand for meal kits and expand its offerings beyond traditional grocery products. Although Plated ceased operations in 2019, the acquisition played a crucial role in shaping the future of meal kit delivery services.
What factors contributed to Plated’s decline and eventual shutdown?
Several factors contributed to Plated’s decline and eventual shutdown in 2019. One of the primary reasons was the increasing competition in the meal kit market, which led to a decline in Plated’s market share. The company faced stiff competition from other meal kit services, such as Blue Apron and HelloFresh, which offered similar products and services at competitive prices.
Additionally, Plated’s business model, which relied heavily on subscription-based services, became less sustainable due to high customer acquisition costs and low retention rates. The company’s inability to adapt to changing market trends and consumer preferences also contributed to its decline. Despite efforts to revamp its business model and offerings, Plated ultimately ceased operations in 2019.
How did the acquisition of Plated impact Albertsons’ business strategy?
The acquisition of Plated had a significant impact on Albertsons’ business strategy, as it marked the company’s entry into the meal kit market. The deal enabled Albertsons to expand its offerings beyond traditional grocery products and tap into the growing demand for meal kits. By integrating Plated’s meal kits into its stores, Albertsons aimed to enhance the shopping experience for customers and increase sales.
The acquisition also reflected Albertsons’ efforts to adapt to changing consumer preferences and stay competitive in a rapidly evolving retail landscape. By embracing the meal kit trend, Albertsons demonstrated its commitment to innovation and customer convenience. Although Plated ceased operations in 2019, the acquisition played a crucial role in shaping Albertsons’ business strategy and informing its future investments in the meal kit market.
What lessons can be learned from Plated’s experience in the meal kit market?
Plated’s experience in the meal kit market offers several valuable lessons for businesses operating in the industry. One key takeaway is the importance of adapting to changing market trends and consumer preferences. Plated’s inability to evolve its business model and offerings in response to shifting market conditions contributed to its decline.
Another lesson is the need for meal kit services to balance customer acquisition costs with retention rates. Plated’s high customer acquisition costs and low retention rates made its subscription-based business model unsustainable. By understanding these challenges, meal kit services can develop more effective strategies for attracting and retaining customers.
How has the meal kit market evolved since Plated’s acquisition?
The meal kit market has undergone significant evolution since Plated’s acquisition in 2017. One notable trend is the increasing competition in the market, with new players entering the scene and existing ones expanding their offerings. The market has also seen a shift towards greater flexibility, with many meal kit services now offering more customizable options and flexible subscription plans.
Additionally, there has been a growing focus on sustainability and environmental responsibility in the meal kit market. Many meal kit services are now prioritizing eco-friendly packaging, sourcing ingredients from local suppliers, and reducing food waste. As the market continues to evolve, meal kit services must adapt to changing consumer preferences and priorities to remain competitive.
What is the current state of the meal kit market, and what can be expected in the future?
The current state of the meal kit market is characterized by intense competition and a growing focus on sustainability and customer convenience. Despite the challenges faced by pioneers like Plated, the market continues to grow, with new players entering the scene and existing ones expanding their offerings.
Looking ahead, the meal kit market is expected to continue evolving in response to changing consumer preferences and technological advancements. Meal kit services can be expected to prioritize sustainability, flexibility, and customer convenience, with a growing focus on online ordering and delivery. As the market continues to mature, it is likely that we will see further consolidation and innovation, with meal kit services adapting to meet the changing needs of consumers.