Dive Brief:
- Meijer announced it’s entering the meal kit space with the launch of its Meal Inspirations line, according to a news release.
- The four kits introduced in this initial launch include a mixture of diced vegetables and seasonings, along with three recipes each, which call for minimal additional ingredients and take less than 40 minutes to prepare. Customers are encouraged to use the recipes included, or to use the pre-cut ingredients as a base for their own creation.
- The meal kit options include a Southwest blend, asparagus and mushroom, ham and vegetable, and rosemary vegetable. Only one, the ham and vegetable option, contains an animal protein.
Dive Insight:
Meijer is thinking outside of the traditional meal kit box with its Meal Inspirations line. Unlike competitor’s kits, which include all of the ingredients to create one specific meal, Meijer offers a more creative alternative.
Price alone makes Meijer’s product stand out. The roughly 14 to 24 ounce tubs of pre-chopped ingredients only cost $4.99 each. Meal kits at other supermarkets can run as high as $10 per serving. In addition, Meijer offers flexible recipe options, and the convenience of pre-cut vegetables along with pre-measured spices.
Meal kits are a growing category, especially in the supermarket space, as busy consumers want help putting a homemade meal on the table. Nielsen estimates supermarkets sold $80 million in the category in 2016, and should see exponentially higher sales this year, while a Field Agent survey shows 78% of shoppers want stores to sell their own kits.
Numerous supermarkets currently offer their own version of a meal kit. Wegmans, which is known for serving restaurant-quality food in its stores, offers “power meals” that include a fresh protein, veggies and seasoning. Albertsons purchased Plated last fall and has begun offering kits in its West coast stores, while Walmart joined the fray by offering meal kits from third-party providers on its website. Under the Prep & Pared brand, Kroger offers meal kits, and just recently expanded its seafood selection in the quick meal program.
The online meal kit industry, worth an estimated $5 billion, serves a large and growing number of consumers. But high marketing costs and low customer loyalty have made operating in that industry a challenge. As supermarkets move into the meal kit space, they should create additional challenges for these companies. Another tie-up akin to the Albertsons/Plated deal could be on the horizon, some analysts speculate.
Meijer’s Meal Inspirations are a smart way to capture more consumer dollars, particularly with millennials. The cheaper price point and emphasis on creativity should appeal to this demographic, while not alienating older shoppers. However, to truly capitalize on the opportunity, Meijer will have to effectively market its new kits so they stand out from the rising tide of competitors.