Time to head to the grocery store

“We want to meet customers on their terms,” CEO Brad Dickerson said on an earnings call Thursday.

Of course, as more meal kits arrive at grocery stores, these companies will have to differentiate their product from competitors.

Grocers like Albertsons and Kroger have already acquired smaller meal-kit services to bring into their stores and Walmart and Amazon announced plans to bring meal kits to supermarkets.

Even Weight Watchers is set to launch a line of quick prep meal kits at grocery stores.

Lempert said meal kit-services need to find a way to stand out and that the most successful ones will likely be those that cater to the health conscious. In particular, he said they can create kits for people with medical issues like diabetes or heart diseases.

Blue Apron has already tested the waters by offering specialized meal plans to customers and it has paid off. Dickerson said the company saw the number of customer sign-ups jump after it introduced a partnership with Whole30 at the beginning of the year.

Whole30 was a 30-day diet plan that was available through February and focused on “whole” foods such as fresh fruits and vegetables and eliminated items like sugar, alcohol, grains, soy and dairy.

The company has also expanded the types of meals it offers, including providing meals that could be made within 30 minutes, meals that require less cleanup and bringing back some of its customers’ favorite recipes.

On Blue Apron’s earnings conference call Thursday, Dickerson also said the company is set to launch several new meals and recipes that cater to larger group occasions as well as providing customers with options for appetizers and desserts.

Dickerson said that customers were using multiple Blue Apron meals to create a larger spread for parties and special events, inspiring the company to create a multicourse box. The special occasion kit includes an appetizer, two sides and a choice of protein for the main dish.

But the pressure is still on in the crowded field. Blue Apron expects it will once again ramp up how much it spends on advertisements.

Ultimately, Lempert foresees more acquisitions of meal kit companies by grocers or grocery chains simply creating their own kits in-store.

“For the supermarkets who are making the meal kits right in the store, it’s a lot more efficient because you can make 20 and if you need more, somebody can make another five,” Lempert said. “It’s a scaleability issue from an operation standpoint that I don’t think [meal kit companies] have solved yet.”

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