HelloFresh rival builds cash war chest as online grocery shopping soars

A HelloFresh rival is building up its cash war chest after teaming up with culinary icon Maggie Beer as its sales in Australia soar.

ASX-listed meal kit delivery service Marley Spoon hopes to attract new customers with Maggie Beer packs. Picture: Supplied

Meal kit delivery service Marley Spoon is building up its cash war chest after teaming up with culinary icon Maggie Beer as its sales continue to soar amid the coronavirus pandemic.

The HelloFresh rival is in a trading halt pending a discounted $56 million placement to institutions to fuel its growth.

The Berlin-based subscription service released its September quarter results to the Australian Securities Exchange late on Thursday, showing a 109 per cent revenue jump compared with the same period last year and expectations of a similar full-year result given continued traction in online meal kit sales.

The biggest revenue growth was in the US, up 145 per cent, followed by Australia (84 per cent) and Europe (83 per cent).

The company took a hit from the temporary closure of its Melbourne distribution centre during the strict lockdown, but a Sydney site is being developed and is expected to begin operations in the first half of calendar 2021.

Order frequency and average order sizes were down from their peaks at the beginning of the health crisis but remained above pre-COVID-19 levels, Marley Spoon said.

“In 2020, many new customers will have experienced the advantages of ordering online and cooking with a meal kit versus going to the traditional supermarket,” chief executive Fabian Siegel said.

Australian culinary icon Maggie Beer has teamed up with ASX-listed meal kit delivery service Marley Spoon. Picture: Supplied

The company hopes to attract new customers with Maggie Beer cheese and preserves packs from South Australia’s Barossa region, which begin deliveries from November 23, along with Marley Spoon’s own festive season menu.

Orders are being taken from November 2.

Announcing the tie-up earlier this month, Maggie Beer said she was happy for the opportunity to “help bring people together and share delicious food” after a tough year for all Australians.

“Christmas has always been very special to me, and whilst it might be harder this year to have all your family and friends together, delicious food to share is such an important part of my world and none more so than the festive season,” she said.

Marley Spoon Australia chief executive Rolf Weber said the company planned to explore future collaborations with Maggie Beer.

Marley Spoon, which says its mission is to “help millions of people cook better and also live smarter by radically reducing waste”, is available around Australia excluding WA, where it plans to expand in coming months.