US grocery retailer Albertsons has announced it has acquired meal kit start-up Plated as it aims to bring more customers to its stores.
Albertsons said the deal advances a shared strategy between the two companies to reinvent the way consumers discover, purchase and experience food. The terms of the deal were not disclosed, but the transaction is expected to close later this month.
Albertsons claimed it is adding a meal kit company with ‘leading technology and data capabilities’ as the retailer focuses on innovation.
Plated will operate as a wholly-owned subsidiary of Albertsons, retaining its New York headquarters.
Founded in 2012, Plated has aimed to disrupt the traditional food supply chain and make it easier for people to cook meals at home.
In a statement, Albertsons said the deal will allow both companies to leverage their diverse strengths to serve customers in a way that appeals to evolving lifestyles and food preferences.
Plated will benefit from Albertsons’ resources and national reach with over 2,300 stores to scale its business and improve its customer experience with new offerings. It will also be able to expand beyond its existing subscription model and offer its meal kits at many store locations, across its digital channels, and through a variety of distribution options.
The move comes after Amazon disputed the grocery sector by purchasing organic specialist Whole Foods for $13.7 billion in June.
Albertsons CEO Bob Miller said: “Today’s consumer is looking for a variety of personalised shopping alternatives, and this transaction is the latest example of Albertsons Cos. meeting our customers wherever and however they like to shop.
“With Plated, we’ve found a partner who shares our commitment to delicious, affordable food; superior technology and innovation; and world-class customer service. Plated knows its customers better than anyone, and together we will accelerate our ability to serve them.
“We are excited to offer our customers more online options and fresh, quality ingredients along with distinctive recipes at their doorstep or through traditional shopping trips.”
Speaking of the deal, co-founder and CEO of Plated, Josh Hix, added: “There’s tremendous upside for Plated’s customers whose experience with our brand will only get better. As meal kits continue to gain traction in the marketplace, we believe the winning formula combines choice, flexibility, culinary expertise, and the ability for customers to buy across channels – all of which we are now singularly positioned to deliver in collaboration with Albertsons Cos.”
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