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Friday, Mar 29, 2024

Nestle Injects Fresh Cash in Freshly Food Service

Less than a week after announcing plans to restructure its U.S. candy business, Nestle USA made another move that could be interpreted as an attempt to give its brand a more nutritious image. The company on June 20 said it had purchased a minority stake in Freshly, a subscription service that delivers “healthy,” ready-made meals to consumers. As the lead investor in Freshly’s $77 million Series C financing round, Nestle acquires a stake in the online, direct-to-consumer prepared meals market, which the company estimates is valued at around $10 billion. The deal trades Nestle’s money and experience for insight into Freshly’s analytics and a seat on its board, which will be occupied by Nestle USA Food Division President Jeff Hamilton. “Freshly is directly aligned with Nestle’s strategic focus … to deliver delicious, nutritious meals to consumers in a way that fits their busy lives,” Hamilton said in a statement. Headquartered in New York, Freshly currently distributes its product –heat-and-serve meals, which buyers can select and purchase online at a starting price of four a week for $49.99 – from a 60,000-square-foot warehouse in Phoenix. The funds from Nestle and other investors will be used to build a new facility in Savage, Md. and a kitchen on the East Coast. Nestle is in the process of moving its Glendale headquarters to Alexandria, Va. The companies’ partnership makes sense with Nestle’s experience. As a longtime frontrunner in the prepared foods sector, the company could give Freshly the expertise it needs to distinguish itself in an increasingly competitive market. Dozens of nutrition-centered subscription meal services have emerged in the past few years, with veteran food companies and technology startups alike vying for a spot on customers’ countertops. One of the biggest names in the business, Blue Apron Inc., is reportedly seeking a $587 million initial public offering. Nestle is confident that Freshly’s distribution model is enough to help it stand out from the crowd. According to the startup, it is able to service 40 percent of U.S. consumers from its Phoenix warehouse; the added facilities in Maryland will boost that number to 90 percent, Freshly said. Nestle declined to say whether its long-term strategy involved opportunities to grow its holdings in companies similar to Freshly, though a company spokeswoman noted that the firm is “always considering potential investments and acquisitions.” CSUN’s Dunkin’ Donuts Students at California State University – Northridge now have another spot to get their caffeine fix: a local franchisee of Dunkin’ Donuts Brands Group Inc. has opened a location on Reseda Boulevard. The store held a grand opening and ribbon-cutting event on June 20, complete with donut tastings, a photo op with Dunkin’ mascot “Cuppy,” and the chance to win a $100 gift card. Dunkin’ Donuts also made a $1,000 donation to the Los Angeles Children’s Hospital to commemorate the grand opening. “I’ve always wanted to be able to open a store in the Northridge area, specifically in close proximity to CSUN, since the school is my alma mater,” owner Aharon Aminpour, chief executive of Pasadena-based Madison Food Management, explained. My goal is for this restaurant to not only be the local go-to destination for coffee, baked goods and sandwiches, but to also be a place where people come to study and spend time with friends.” The outpost is Aminpour’s sixth Dunkin’ Donuts location and his third in the Valley. Madison also operates Dunkin’ Donuts stores in Encino and Westlake Village; the company has 30 more in development for Southern and Central California. The Northridge Dunkin’ Donuts is located at 9355 Reseda Blvd. and will be open daily from 5 a.m. to 11 p.m. New U-Haul A local company is moving into the moving business as a new affiliate of U-Haul International Inc. U-Haul, a Phoenix-based provider of moving and self-storage services, on June 20 announced it had signed a distribution deal with GSI, a Chatsworth firm owned by Chaminda DeSilva. DeSilva also serves as chief executive of business consultancy Silo USA Inc., according to public record. He could not be reached for comment. Self-storage businesses in the West appear to be outperforming those in other parts of the country, according to an industry report by commercial real estate research firm Reis Inc. In the first quarter of 2017, self-storage rentals in the region grew more than 4 percent year-over-year, more than twice as much as all other parts of the U.S. Staff Reporter Helen Floersh can be reached at (818) 316-3121 or [email protected].

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