Dive Brief:
- Kroger is currently testing new convenience-focused varieties of its popular Prep + Pared meal kits in a Newport, KY store, according to the Cincinnati Business Courier.
- One-Step meal kits, which the store has offered for three months, includes a meat and accompaniment that shoppers can take home, combine and heat in the oven, and have ready to eat in 12-15 minutes. They retail for between $9 and $12. The store also offers Ready to Heat meal kits, which customers heat in the microwave or oven for seven to 15 minutes, and which sell for $13 to $20, depending on the dish.
- Kroger is also testing other food innovations, including offering carryout foods from Eli’s BBQ, a Cincinnati barbecue staple, as well as Kroger store brands Chicken Co. and Pizza Romano. Kroger is also testing an app that allows customers to order deli meats, cheeses and some prepared foods in advance, to save time upon pickup.
Dive Insight
Kroger’s Prep + Pared expansion has been measured of late, with the kits slated to appear in just over 10% of its stores, including Ralph's locations in California and Kroger locations in several Midwestern markets. Its convenience-focused test lines, meanwhile, indicate just how serious the company is about keeping up with the trend.
Meal kit companies from Blue Apron to newcomer Gobble are expanding into similar quick-prep lines. Realizing that consumers don't always have the time to assemble even a pre-prepped meal, they're simplifying the process further. Gobble, for one, focuses on three-step recipes that can be prepared in 15 minutes using one pot or pan.
With prices ranging from $9 to $20, depending on meal and serving size, Kroger's One-Step and Ready to Heat meals are pricier than a fast food meal, but less expensive than what online meal kit competitors are offering. Consumers can also pick up a Kroger meal kit at will, while online competitors require scheduling and delivering time. Additionally, online meal plan kits may require an order contain multiple meals, while Kroger customers have more flexibility to purchase just one meal, if they want.
Kroger’s placement of meal kits near the grab and go section of the Newport store, near its new line of carryout foods and other ready-to-eat items, will raise awareness of these new options.
Despite its advantages over online competitors, Kroger still must keep up with innovation in the fast-moving market. More than 150 companies have entered the meal kit market in the past few years. Many now offer innovative ingredients, eco-friendly packaging and easy reordering in addition to quick-prep meals. Companies in the industry have struggled to make money recently, but are pushing new features and ingredients in an effort to stand out from the crowd.
Kroger also has to contend with other grocery competitors, most notably Albertsons, which purchased industry pioneer Plated earlier this year. Walmart has also joined the fray by offering meal kits from third-party providers on its website.
There's no guarantee Kroger will expand its new meal kits beyond a single store — but this wouldn't come as a surprise. Demand for meal kits is high, but the format is by no means fixed. Some consumers want to take their time cooking while also getting a leg up on ingredients preparation; others want to enjoy a fresh meal that's ready in the time it normally takes to heat a frozen lasagna. Meal kit companies are covering all these bases, and Kroger is focused on doing the same.