Dive Brief:

• HelloFresh plans to open its largest distribution facility yet — a nearly 440,000 square-foot center in Phoenix, Arizona — in the fourth quarter of 2021, the German meal kit company said in an emailed press release on Thursday.
• HelloFresh also announced last week that it has launched Green Chef, the New York-based organic meal kit company it acquired in 2018, in the U.K., building on its rollout of U.S.-only brands into international markets.
• The moves are coming at a time when the German meal kit company is trying to retain customers it gained during the pandemic long-term and scale its business globally. 

Dive Insight:

The upcoming Arizona facility, which is in an area with access to major routes and “a strong labor pool,” will be able to boost HelloFresh’s West Coast presence, the company said in the announcement. 

The facility joins the meal kit firm's list of new facilities to grow its U.S. base. Earlier this year, HelloFresh opened a 127,055 square-foot distribution center in New Jersey to produce and distribute its value-oriented EveryPlate brand. The company also recently opened new facilities in Georgia and Texas. 

Expanding its supply chain and production facilities allows the company to add more meal options, which can retain and attract new customers in the crowded meal kit space. Competitors Blue Apron and Freshly have also recently focused on adding meal variety lately.

HelloFresh is continuing to grow in the U.S., where it saw more than half of its active customers and number of orders during its first quarter. The company saw its active U.S. customers grow by 1 million during its latest quarter compared to the previous one, and U.S. sales increased 37% during the same period.

Meanwhile, the company is bringing more variety to its international customers by bringing its U.S.-based brands overseas. Last year, the company brought EveryPlate, its value brand, to Australia. Its Factor75 brand with prepared meals focused on health and wellness, which it bought late last year, is also slated for international expansion, the company said.

Bringing Green Chef to the U.K. comes at a time when the company says nearly half of British consumers struggle to keep up their healthy eating plans for more than two weeks. 

In addition to the international brand expansion and new distribution center in Phoenix, HelloFresh also plans to venture into lunch and breakfast.