Saturday, March 17, 2018

Kid’s Meals Grocer H-E-B aims to Win back Families

In an effort to win back family business once the mainstay of the grocery business Texas, based H-E-B took a direct shot at chain restaurants when the company's Central Market location in San Antonio, Texas, has launched family focused meal kits for kids. The kid-friendly entree choices the ilk of spaghetti and meatballs and chicken quesadillas are designed to appeal to and feed only kids.
The meal kit are priced at $6.99 to compete with fast food restaurants and feed two kids. The meals come with pre-portioned ingredients and require some cooking, Ok we know that at fast food restaurants now cooking is required but you can serve a meal they like at home and your kids will know you cooked for them.  That just might be more important than you think.
H-E-B is the only grocer at this time targeting kids with specific kits designed to appeal to the younger palate. Scrumpt, Nurture Life and some other companies do offer subscription based meal kits for kids, and the "kid meal kit" space seems to be exploding accord to new reports.

1.        A new target consumer has emerged in the fast-growing meal kit industry – kids. H-E-B has launched meal kits for kids at its San Antonio Central Market store, according to Retail Leader. The new line features entrees such as spaghetti and meatballs and chicken quesadillas. Each kit costs $6.99 and feeds two.
  1. H-E-B joins Yumble, Scrumpt and Nurture Life in the children’s prepared meals space. HelloFresh co-founder Dan Treiman helped launch Yumble last summer and it is now available in 26 states with expansion planned this year.
  2. The home meal kit category has grown to $5 billion, according to Packaged Facts. Although online players like Blue Apron and HelloFresh dominate the market, grocers like Kroger, Albertsons, and now Walmart, have steadily grown sales. According to Nielsen, sales of in-store meal kits grew 26.5% last year, to $154.6 million.
McDonald’s Happy Meal just might be under attack as both H-E-B and Yumble have promised “fun” in their offerings, and Yumble’s boxes include activity sheets and trivia cards. It will also take some promotional pushes to get the word out that these targeted kits exist. H-E-B will need to promote the new offerings in store circulars and online, and, if they haven't already, position the kits next to their grown-up counterparts. H-E-B currently offers dinner-for-two meal kits ranging in price from $14 to $18. Think about it fun for mom, dad, and kids. 
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