Woolworths has announced that it has entered into a strategic partnership in the Australian market with Marley Spoon, a leading global subscription-based meal kit provider.
The partnership includes a A$30 million investment in Marley Spoon by Woolworths Group, via a senior secured convertible note (A$23 million) and issue of Marley Spoon shares (A$7 million).
The issue of shares will result in Woolworths Group owning approximately 9% of Marley Spoon and the convertible note is structured to allow Woolworths Group to participate in the growth of the Australian business.
The partnership will see both companies working collaboratively to grow both the Marley Spoon and Dinnerly brands in Australia, and to build operational synergies, with an initial exclusive term of five years.
“This partnership gives Woolworths exposure to the high-growth ready-to-cook meal kits segment and aligns with our ongoing goal of meeting our customers’ needs for healthy and convenient meal solutions. Marley Spoon has demonstrated it has a customer focused, innovative and entrepreneurial culture and we are excited to partner with them,” Brad Banducci, CEO of Woolworths Group said.
“As grocery spending shifts to online, home-delivered meal kits will play an increasingly large role in helping consumers save time with their weeknight meals. We see this partnership delivering important benefits to both Marley Spoon and Woolworths, with both parties incentivised to grow Marley Spoon’s business in Australia. We have chosen to partner with Woolworths because it’s clear they understand what scale-up businesses need. Despite their size, they have a genuine partnership mentality, offering us support to grow the business whilst empowering us to run our own race,” Fabian Siegel, CEO of Marley Spoon said.