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Why meal-kit startups continue to find backers

Meal-kit companies are continuing to get funding from big food brands, although Blue Apron‘s initial public offering yielded lackluster performance. Indeed, Big Food players haven’t stopped from diving into the $4.6 billion market of food-delivery services. Recently,

  • Campbell Soup backed Chef’d with a $10 million investment
  • Unilever led a $9 million funding round for Sun Basket.
  • Nestlé acquired a minority interest in Freshly, leading a $77 million investment round.
  • Kroger recently launched its own meal-kit brand, called Prep+Pared.

As the deals keep flowing, industry watchers warn of a coming shakeout—particularly as Amazon makes its own foray into the space.  However, according to a Harris poll, one in four Americans (many of them young) purchased a meal-kit delivery in 2016. With this in mind, it makes the meal-kit industry partly attractive.

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