Factor Becomes Number One Ready-To-Eat Meal Company in U.S.
Factor, America's leading ready-to-eat meal delivery service, has become the largest ready-to-eat meal company in the U.S. in terms of market share. The milestone comes as Factor celebrates the one-year anniversary of joining HelloFresh, the global meal kit leader, which in November 2020 acquired Factor as a key step in the company's growth plan to strengthen its position in the U.S. and expand its total addressable market.
With a vision to become the world's leading food solutions group, investing in the ready-to-eat market supports a key pillar of HelloFresh's long-term growth strategy. Factor, which launched in 2012, has spent a decade perfecting its ready-to-eat supply chain in terms of how it sources ingredients, cooks meals as well as packages and ships them. Today, Factor is pairing its product development and production expertise with HelloFresh's world-class direct-to-consumer capabilities and technology infrastructure.
"Ready-to-eat meals are an emerging market with significant growth potential, and we are seeing an increase in demand for these offerings as consumers seek more convenient meal solutions," said Uwe Voss, CEO of HelloFresh U.S. "The addition of Factor ? whose audience skews more toward men and lunches than our traditional meal kits ? has allowed us to serve different meal occasions and new customer segments. We are leveraging HelloFresh's resources and global expertise to further expand Factor's business across the U.S., and we are excited to support the future growth of the ready-to-eat category globally."
HelloFresh's platform is enabling Factor to reach the full potential of the huge ready-to-eat opportunity. Since its acquisition, Factor has seen a y-o-y revenue growth of 250%. The company has expanded its weekly menu offering by 40% over the past year, allowing customers to choose from keto, calorie smart, vegetarian, and vegan dishes.
In addition to Factor in the U.S., HelloFresh has expanded its ready-to-eat capabilities globally and this year successfully closed the acquisition of Youfoodz, Australia's leader in the ready-to-eat segment. The deal brings together HelloFresh's expertise in direct-to-consumer marketing, supply chain management, and technology with Youfoodz's strength in developing, manufacturing, and distributing prepared meals.
HelloFresh was founded a decade ago with the mission to change the way people eat, forever. Today, the company's U.S. brand portfolio ? comprised of HelloFresh, EveryPlate, Green Chef and Factor ? allows customers to benefit from a diverse and distinct meal offering for every need, occasion, and price point. This multi-brand strategy has enabled the company to significantly grow its total addressable market. From a product offering and price perspective, HelloFresh now caters to an even larger target group.
About HelloFresh
HelloFresh is the world's leading meal-kit company and operates across 16 international markets. In 2020, HelloFresh delivered more than 278 million meals to customers across the U.S. With a focus on helping Americans eat more sustainably, HelloFresh is the first carbon neutral meal-kit company. HelloFresh was named America's Best Customer Service for Meal Kits in 2020 and voted the Most Trusted Meal Kit Delivery Service in America in 2021 and 2022 by Newsweek. HelloFresh was founded in Berlin in November 2011 and has U.S. offices in New York, Chicago, and Boulder.
About Factor
Factor is a fully-prepared meal delivery service that is taking a whole new approach to fresh-prepared food. The company's weekly rotating menu of breakfast, lunch, and dinner options are hand-crafted by gourmet chefs and optimized by dietitians. In addition, Factor offers 33+ weekly add-on options that customers can add to their subscriptions, including shakes, juices, snacks, proteins and desserts. Factor is based in Batavia, IL and delivers anywhere in the contiguous U.S. Factor is backed by leading consumer investors Listen Ventures, Bluestein Ventures and Marcy Venture Partners.
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