Meal
kits are in. Sort of. In the U.S. there are now more than 150
meal-kit businesses with estimated sales of $2.2 billion in 2017 (Wilson,
2018).
But,
many of those companies have yet to make a profit, and despite some high
profile IPO's companies are struggling with churn as existing users leave after
the novelty wears off and new ones are becoming increasingly hard to find.
Enter
Kroger and Walgreens. These two brands
who are both suffering from disruptions in their markets are joining forces to
set up meal kit shops within Walgreen stores.
The reason is simple - one stop shopping. Assuming the pilot program goes well, the
intent is for the shop to take up 1/3 of the floor space in the average
Walgreens. Meals will serve two and
pricing will start at $17. The express
recipes will cook in 15 minutes (Forbes,
2018)
As we
have learned, currently the primary driver of profits in drugstores are prescriptions
and companies are eager to expand "front of store" operations to
increase overall profits. Some
hypothesize that meal kits have appeal for beginner cooks and will provide a
point of entry for current non-cooks.
Does
this idea sound like a winner to you?
Will non-cooks be persuaded to give these meals a try? Is changing from a subscription delivery
service to a pick up one likely to attract users? What type and why? And what about you? Have you subscribed to a meal-kit
service? Will you pick one up on your
next trip to the drugstore?
Wilson,
B. (2018, November 30) The Surprising Rewards Of Meal Kits. wsj.com
Retrieved December 5, 2018, from
Forbes,
T. (2018, November 5) Kroger Setting Up
Shops Within 13 Walgreens, Launches Meal Kits Offering. mediapost.com. Retrieved November 5, 2018, from
https://www.mediapost.com/publications/article/328880/kroger-setting-up-shops-within-13-walgreens-launc.html?edition=111985
