- Woolworths has announced a $30 million investment in home delivery meal service, Marley Spoon
- The partnership is intended to grow Marley Spoon’s presence in Australia
- Marley Spoon’s share price spiked over 80 per cent following the news
- Both companies said they will benefit from one another through tapping into the varying connections each
have, including customers and suppliers
Supermarket giant Woolworths has announced a $30 million investment in meal delivery service, Marley Spoon. Following the commitment, Marley Spoon’s share price peaked at 80 per cent.
Marley Spoon sends recipes and ingredients weekly to customers, intended to relieve the pressure of grocery shopping and assist in a promoting a balanced diet. Its services are currently available in The Netherlands, Belgium, Germany, USA, Austria and Australia.
The Chief Executive Officer of Marley Spoon, Fabian Siegel, said “as grocery spending shifts to online, home delivered meal kits will play an increasingly large role in helping considers save time with their weeknight meals.”
Woolworth’s partnership with Marley Spoon will focus on increasing and expanding the company’s presence in Australia. Alongside building operational synergies “with an initial exclusive term of five years.”
A total $23 million of Woolworth’s payment is being made via a senior secured convertible note and $7 million is being paid through the issue of Marley Spoon shares. The accumulation of shares results in Woolworths holding a nine per cent interest in Marley Spoon.
According to Marley Spoon, Woolworths will learn from the company’s market experience, particularly through online customer engagement. Marley Spoon said it will benefit from Woolworths’ deep industry experience notably through engagement with the supermarket giant’s customer base and suppliers.
The Chief Executive Officer of Woolworths Group, Brad Banducci, said the partnership with Marley Spoon gives the company “exposure to the high-growth, ready-to-cook meal kit segment which aligns with the customer demand for “healthy and convenient meal solutions”.