Page 22 - Food & Drink Magazine July 2018

READY MEALS
LEFT: Marley Spoon is now publicly listed.
BELOW: HelloFresh is moving into logistics.
A RETAIL MODEL
TFK TEAMS UP WITH DRAKES
Thomas Farms Kitchen (TFK) and Drakes Supermarkets teamed up in South Australia late last year to create a new retail category: ready-to-cook meal packs.
The ‘grab and go’ Recipe Bags contain fresh ready-to-cook meals of exact proportions from Thomas Farms Kitchen and have been launched exclusively with Drakes Supermarkets.
The Recipe Bags come in six different delicious recipes, with all ingredients sourced from the highest quality local produce, to make an effortless and affordable dinner at home in as little as 20 minutes.
The TFK Recipe Bags are on sale for $20 as a special introduction offer, with a RRP of $25.
The range includes recipes and ingredients for Beef Rump with Brava Potato, Korean BBQ Beef Bowl, Perfect Zesty Chicken, Lamb Chops and Green Olive Mash, Chicken & Green Peppercorn with Pearl Barley, and Roast Lamb with Sweet Potato.
Drakes Supermarkets managing director Roger Drake said the offering was a first for South Australian supermarket shoppers, which combined “convenience with the attraction of easy cooking in your own kitchen”.
meal kits (in all parts
of the supply chain) the opportunities are only on offer for businesses with the right offering and a strong ability
to execute,” he said.
“The offering obviously needs to serve a consumer need. On top, there is a commercial need to ensure that basket sizes and margins are sufficient to get a return on marketing investment.
“We are able to explore opportunities like this because we are growing faster than ever. The scale of our customer base alone gives us sufficient density to run our own logistics network,” Rutledge said.
NEW NICHES
Most of the popular meal kit services offer recipes for dinners only, but the tide is turning, with the addition of breakfasts, lunches, desserts and other items becoming the norm in many countries.
Niche markets are also emerging in the meal kit delivery market, with high protein, low carb, vegan, fresh, frozen and premium offerings among the growing list of options.
Supermarket chains have also started offering their own meal kits at lower prices than the home delivery services, and in the US, Walmart has announced its plans to roll out
✷
its own branded meal kit service in 2000 store locations by the end of 2018.
Closer to home, Thomas Farms Kitchen and Drakes Supermarkets teamed up in South Australia late last year to create a new retail meal kit category (see box).
Woolworths has also been dabbling in the retail meal kit market, but the home delivery model perfected by Marley Spoon and HelloFresh is still considered to be a more efficient model than the large retail networks operated by Woolworths and Coles.
That said, there have
been some drop-offs in the meal kit space, including New Zealand company My Food Bag, which exited from
Australia in late 2016. Earlier this year, Aussie
Farmers Direct, which delivered fresh milk, vegetables, meat and bread to about 100,000 customers, went into administration.
Meanwhile, there are a number of aspiring stars in the sector, such as Brisbane startup Tastebox, which offers kits with healthy recipes that can be prepared in four steps, and in less than 30 minutes.
Tastebox founder Josh Dawson says its main customers are busy professionals, including couples and families.
“The common denominator is people who are time-poor but still like to cook for themselves, which I think is a crucial part of ouroffering,”Dawsonsays. ✷
22 | Food&Drink business | July 2018 | www.foodanddrinkbusiness.com.au