Dive Brief:
- Shares of Blue Apron surged for the third day in a row Wednesday, Bloomberg reported. The meal kit company’s stock more than doubled yesterday, ending the day worth more than seven times its value when trading closed last Friday.
- On Tuesday, Blue Apron’s stock price reached $6.55 a share, and it closed yesterday at $16.25, up from about $2 in late February.
- The company, which delivers fresh ingredients and recipes for meals at home, is seeing renewed popularity as more people stay in to avoid crowds and public places.
Dive Insight:
The struggling meal kit industry could see an unexpected revival as cases of COVID-19 rise and Americans look for ways to get fresh food delivered to their homes. Online grocery delivery services have been unable to keep up with demand from shoppers, and some consumers are concerned about sanitation when it comes to restaurant delivery.
With fresh ingredients, sealed packaging and doorstep delivery, Blue Apron and other meal kit makers like HelloFresh and Sun Basket may be in for a big-time boost. Several meal kit companies have reported uninterrupted operations and said they have not encountered a shortage of food despite the disruption caused by the virus.
HelloFresh CEO Dominik Richter reported on a recent conference call that the company does not expect disruptions due to the coronavirus, and anticipates growth between 22% and 27% in the U.S. this year. HelloFresh was also recently offering $100 off and free shipping to make meals more cost-effective for consumers during the pandemic.
Blue Apron has been the poster child for failing meal kit companies over the last several months, most recently announcing it would consider a sale after reporting a weak Q4. The company’s net revenue decreased by 33% at the end of 2019, though its revenue per customer increased. Blue Apron has been trying to turn its performance around since bringing on CEO Linda Kozlowski last April.
