Albertson’s Buys Plated Meal Service

Albertsons Companies, one of the largest supermarket retailers in the country, has agreed to buy NY-based Plated, which offers a premium meal kit service shipped directly to customers. Terms of the deal weren’t announced which is expected to close this month.

Launched in 2012, Plated offers subscription meal kits starting at $23.90 per week. Customers can choose from 17 original chef recipes every week that feature responsibly sourced meats, seafood and farm ingredients.

Following the deal completion, Plated will operate as a subsidiary of Albertsons Cos. with its own distinct consumer brand. The company will continue to be headquartered in New York City, with fulfillment centers across the country and led by Co-founder and CEO Josh Hix.

Albertsons operates over 2,300 supermarkets in 35 states and DC under 20 different names including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs.

In teaming up with Plated, Albertsons Cos. adds a meal kit company with leading technology and data capabilities, a strategic step for the company as it continues to focus on innovation, personalization, and customization. Together, Albertsons Cos. and Plated will leverage their diverse and complementary strengths to serve customers in a way that appeals to the evolving lifestyles and food preferences of people across the country. Among the key projected outcomes of this deal is for Plated to become the first omnichannel meal kit offering with national scale.

“Today’s consumer is looking for a variety of personalized shopping alternatives, and this transaction is the latest example of Albertsons Cos. meeting our customers wherever and however they like to shop,” said Bob Miller, Chairman and CEO of Albertsons Companies. “With Plated, we’ve found a partner who shares our commitment to delicious, affordable food; superior technology and innovation; and world class customer service. Plated knows its customers better than anyone, and together we will accelerate our ability to serve them.  We are excited to offer our customers more online options and fresh, quality ingredients along with distinctive recipes at their doorstep or through traditional shopping trips.”

Plated will get a boost from Albertsons Cos.’ resources and national reach with over 2,300 stores to scale its business and improve its customer experience with new offerings. Albertsons Cos. will enable Plated to expand beyond its existing subscription model by offering Plated meal kits at many store locations, across its digital channels, and through a variety of distribution options to make it easy to create delicious meals at home by providing the flexibility, convenience, and access to high-quality, fresh ingredients coupled with chef-designed recipes that customers are looking for. Plated’s marketing and acquisition efforts will also benefit by gaining exposure to Albertsons Cos.’ 35 million customers per week.

Josh Hix, Co-founder and CEO of Plated, said, “Joining Albertsons Companies presents an amazing opportunity to accelerate our positive impact on the future of food in America by making fresh, delicious food more widely available. Albertsons Cos. is at the forefront of the changing food and grocery landscape with their customer obsession, their large national store footprint, and their exciting plans for the future of the grocery store. We’re excited to be partnering with them to shepherd our growth while preserving the unique strengths that define Plated today. There’s tremendous upside for Plated’s customers whose experience with our brand will only get better. As meal kits continue to gain traction in the marketplace, we believe the winning formula combines choice, flexibility, culinary expertise, and the ability for customers to buy across channels–all of which we are now singularly positioned to deliver in collaboration with Albertsons Cos.”