Nestlé discontinues Freshly meal delivery service

Nestlé SA has discontinued its Freshly home meal delivery service, and this was announced recently. It was reported that the business was shut down to transition into food service via a joint venture.

There is also a possibility for Freshly to get into the retail industry through the JV. Then again, the brand did not really explain what would happen to its business after the shutdown. The company simply posted a short notice for the cancellation of its service.

“It is with a heavy heart that we announce the Freshly meal delivery service will be ceasing operations,” Freshly’s memo on its website reads. “This is a difficult time as we say goodbye to our incredible community.”

Mark Schneider, Nestlé's chief executive officer, said that Freshly and Kettle have one in common, and that is the freshness of the products they sell. However, the former could no longer continue with the deliveries and will now direct its efforts to food service, where operators do not need much labor to offer fresh meals.

As the Freshly home meal delivery closes, customers may still place their orders until Jan. 17, and these will be shipped until Jan. 21 as the final batch of deliveries. Customers who have gift cards or store credit should use them before the said date because they will expire and can no longer be applied to any orders.

As per Food Business News, Freshly was first established in 2015 as a fresh-prepared meal delivery business. In 2020, Nestlé bought it for $950 million.

In 2021, the Swiss food and drink company revealed its plans to boost Freshly’s production and order fulfilment by opening new facilities in New Jersey and Georgia. When the COVID-19 pandemic hit, the brand said it delivered more than one million meals per week across the U.S. as people were confined in their homes for long periods.

However, its sales suffered after orders dwindled as people started to go back to spending for meals outside of their homes when the pandemic eased up. High inflation rates also affected the firm. In any case, Freshly will be working on a new joint venture with L Catterton investment company as its home delivery service closes.