MarketWatch reports that Albertsons said yesterday that it plans to phase out the subscription component of its Plated meal kit business, and instead will focus on expanding the number of offerings available under the brand name and make them more visible and available as meal solutions sold in its stores and online.
The shift will be managed by Albertsons' Own Brands business unit.
The story notes that "Albertsons tested meal-kit performance in its Northern California Safeway stores and found that those who purchased Plated products were more likely to have families and purchase larger baskets."
In a prepared statement, Geoff White, Albertsons' EVP/Chief Merchandising Officer, said, "Our vision for Plated includes an expanded set of products that goes far beyond a dinner-based solution and into a comprehensive in-house culinary brand. With a broader scope of offerings, we see Plated solving customer demands around convenience, lifestyle, and cooking experience, while adding yet another layer of interest to our in-store journey."
The shift will be managed by Albertsons' Own Brands business unit.
The story notes that "Albertsons tested meal-kit performance in its Northern California Safeway stores and found that those who purchased Plated products were more likely to have families and purchase larger baskets."
In a prepared statement, Geoff White, Albertsons' EVP/Chief Merchandising Officer, said, "Our vision for Plated includes an expanded set of products that goes far beyond a dinner-based solution and into a comprehensive in-house culinary brand. With a broader scope of offerings, we see Plated solving customer demands around convenience, lifestyle, and cooking experience, while adding yet another layer of interest to our in-store journey."
- KC's View:
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I'm a fan of subscriptions in general, but it seems pretty clear that the business model was too restricting for the meal kit business. I think this is a smart move by Albertsons.
