Kroger acquires Home Chef, redefines consumer shopping patterns
Category: #retail  By Pankaj Singh  Date: 2018-05-25
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Kroger acquires Home Chef, redefines consumer shopping patterns

Kroger Co. is undertaking a deal to acquire Home Chef, a meal kit company for an upfront value of $200 million. The deal, which is expected to close in a month, also includes a clause to make payments of another $500 million over the next 5 years if certain growth targets are met. The largest supermarket chain of the United States, Kroger, is aiming to bring the popular meal kits to customers in their brick-and-mortar stores and redefine shopping habits.

Pat Vihtelic, Home Chef’s CEO, has been reported to say that the company will be glad to see more of their meal kits on store shelves and be present everywhere their customers are.

For the uninitiated, Home Chef is one of the prominent U.S. meal kit companies delivering meal ingredients to customers with detailed preparation instructions. According to Home Chef, the company delivers around 3 million meals each month and registered a valuation of $250 million in 2017. It also receives 100,000 reviews from customers each month which makes it easier for the company to understand its customers’ needs.

Yael Cosset, chief digital officer, Kroger, opined that Home Chef’s access to its customer’s demands is something Kroger can learn and adapt for itself.

Both companies will gain each other’s customer base through the deal and will expectedly change the way shoppers buy and order groceries. Kroger has 2,800 stores in the nation and an online portal, which are frequented by more than 10 million shoppers daily. The meal kit industry, that has been grappling with online subscriptions, will definitely profit from having their products presented in front of thousands of customers every day, claim experts.

According to reliable sources, Cosset said that Kroger will be making the Home Chef meal kits available online once the deal is closed to use consumer data and ascertain which stores will initially sell the kits.

While Vihtelic will remain the CEO and maintain the e-commerce business, Home Chef will be operating as a subsidiary of Kroger once the deal is closed.



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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