History
2020: Nestle purchased Freshly for $1.5 billion
At the end of October, 2020 Nestle announced acquisition of a startup of Freshly for $1.5 billion. The company agreed to pay $950 million in advance and to $550 million from future profit depending on achievement of the set conditions.
Freshly is the startup from New York founded in 2015 which offers weekly orders for delivery of healthy food for the house. Dishes can be warmed in several minutes in the microwave or an oven. Thus the startup offers the clients fresh and healthy food without the time expenditure connected with its preparation. According to the press release of Nestlé, Freshly delivers more than 1 million lunches a week in 48 states of the USA. The predicted sales volume in 2020 will be $430 million.
The startup attracted in total $107 million from investors, including from Highland Capital Partners, White Star Capital, Insight Venture Partners and Nestlé. The previous investments brought Nestlé of 16% of stocks Freshly and also testings of the growing market served "as a strategic evaluation stage".
 | Consumers not only pass into the sphere of e-commerce, but also even more often eat houses, - the chairman and the chief executive officer of Nestlé USA Steve Presley noted. - These changes were caused by a pandemic, but for certain will remain with us for a long time. Acquisition of Freshly will help us to orient with new realities, the food of the USA installed in the market. |  |
The cofounder and the CEO of Freshly Michael Wystrach noted that the company is going to treble quantity of the menu items offered every week however in general the situation will hardly seriously change: "I can assure you that was found by products, the prices and a possibility of a subscription will remain the same. We are not going to change ingredients or to integrate the products Nestlé into the menu. Freshly will continue to work as independent business, but with support of Nestlé for further development".[1]
Notes
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