Up-start legacy CPG pantry busting companies the ilk of Plated, HelloFresh, and Blue Apron continue to garner favor with Millennials, Baby Boomers, and Gen X. Foodservice Solutions® Grocerant Guru® calls meal kit’s training wheels for Millennials, but they have proven to be much more.
In fact our Grocerant Guru® found that not only are meal kits pantry busters they have edified millions by establishing proper fresh food portion sizing, elevated the food waste to new heights, provided a turn-key solution for dinner. While becoming popular they have become a thorn in the side of traditional grocery retailers who traditionally focus of filling consumer pantry.
So, what do you think consumers want when it time for dinner, a full pantry, meal kits, or a fresh fast food meal for dinner? Results of a Tufts University research study released in April found that 72 percent of fast-food meals and 63 percent of full-service meals contained 600 calories or less, meaning they met recommended calorie guidelines for children.
Peapod a grocery delivery company who’s stability, survival, and sustainability is all about saving consumers time partnered with several CPG branded companies to develop meal kit’s that cost less, feed more people and are easy to prepared.
Peg Merzbacher, VP of regional marketing Peapod stated “We've benefited significantly from the expertise of our CPG company partners whose recipe resources, consumer research and culinary talent helped us develop meals that really appeal to consumers from a taste, nutrition and ease of preparation perspective,”
Price, Portability, and Positioned as a time saving option is one reason that Peapod’s meal kits “sold over 150,000 meals in our test markets with a repurchase rate double what we had projected,” according to Merzbacher.
They cost from $5-$7.50 per serving, which is typically less than those offered by meal kit delivery services. At Peapod many of the meal kits make four to six servings, whereas the delivery companies’ kits tend to make two servings.
Delivery is the key component but focusing on meals over pantry just might be the ingredient that drives incremental customer adoption at Peapod. Peapod first launched meal kits using Barilla products in 2014. With the introduction of meals created in partnership with ConAgra and Campbell Soup Co. last month, Peapod now offers 15 options. However Peapod’s meal kits still cost more than a meal from a fast food retail outlet and there are no dishes to be done. Do you want to cook, do dishes, and clean up?
Invite Foodservice Solutions® to complete a grocerant program assessment, grocerant ScoreCard. For brand, or product placement assistance our Grocerant Guru® has the skill-set you are looking for. Since 1991 www.FoodserviceSolutions.us of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869