Lite n’ Easy has recorded a 15 per cent rise in new customers since 202O

Pre-made meal giant Lite n’ Easy is seeking to gain a bigger slice of the competitive sector with the collapse of Jenny Craig, revealing how it plans to tap into the weight-loss market.

The surprise collapse of weight loss giant Jenny Craig will see players within the competitive pre-made meals sector jockeying to gain a larger slice of the market.

The $2bn sector grew over the Covid pandemic with stay-at-home customers taking up products from more than 200 companies in Australia including Lite n’ Easy, McCain Foods, Heat to Eat, My Muscle Chef and Youfoodz.

However, according to market researchers IBISWorld growth will slow with the impact of competition from supermarket private label brands, takeaway providers and meal-kit companies.

New Lite n’ Easy chief executive Nathan Hayman said it was a very competitive market and they will be making a play for Jenny Craig’s customers.

“Jenny Craig was certainly viewed as a competitor and I think we have a competitive offering for their customers,” he said.

Since 2020, Lite n’ Easy has recorded a 15 per cent growth in new customers nationally helped by the Covid pandemic.

“It was good for business as it was for most ready-made meal companies but we knew on the other side of that we needed more strings to our bow,” Mr Hayman said.

“We embarked on a lot of research and development and innovation as a business and we are continually diversifying outside of our traditional offering.”

The company delivers to all major cities.

Meal preparation in the Lite n' Easy’s main assembly hall in Banyo.

Over the last few years Lite n’ Easy – which was once purely a pre-made meal delivery service – has expanded into supermarkets with its Select Range frozen meals. Strong demand has seen Lite n’ Easy create a range of My Choice meals, tailored to meet the nutritional needs of older Australians with reduced appetites.

It now delivers over 10 million of these meals per year to those who qualify for the federally funded Commonwealth Home Support Program or Home Care Package.

According to its 2021-2022 financial statement lodged with the Australian Securities & Investments Commission, Lite n’ Easy Pty Ltd recorded revenue of $418.16m in the last financial year compared to $410.22m in the previous 12 months. It recorded a profit of $14.47m down from $20.7m in 2020-21.

While the pre-made meal sector has enjoyed good times, economic headwinds have also claimed some victims.

The first Jenny Craig opened in Melbourne in 1983 but in May the Australian and New Zealand business appointed FTI Consulting as voluntary administrators, following its demise in the US.

In April Sydney-based gourmet meal delivery CoLab, formerly known as ChefPrep, went into voluntary administration after it failed to secure more capital, just two years after it was established.

Mr Hayman said Lite n’ Easy has had to negotiate the economic headwinds like the rest of Australia but in the past year has put on 60 new staff at its Brisbane headquarters.

“We certainly have been facing inflationary pressure like most other food companies,” he said.

“We try to take a balanced view of what we can share with our customers and what we can absorb. We are forecasting continued growth in the calendar year.”

Mr Hayman said they were thrilled to be rated No. 1 healthy meal delivery service for the fourth year in a row by Canstar Blue.

“We are very proud of how we have moved with the times and it is clear we are giving Australians what they want as our business continues to grow thanks to our innovation and forward thinking,” he said.

“We are passionate about educating people on what a healthy lifestyle looks like that produces long term health benefits.”