Grocery giant to buy meal-kit company

Albertsons Cos. has become the first national grocery retailer toacquire a prepared-meals company.



The nation's second largest supermarket chain is acquiring online meal company Plated in a deal that is expected to close later this month. The move taps into Americans' growing demand for meal delivery services and also shores up Albertsons' defenses against Amazon, which has become a key player in grocery with its acquisition of Whole Foods Market.



Plated, which was founded in 2012, will operate as a wholly-owned subsidiary of Albertsons Cos., with its own leadership team led by co-founder and CEO Josh Hix. The company will continue to be headquartered in New York City, with fulfillment centers across the country.



Albertsons will enable Plated to expand beyond its existing subscription model by offering Plated meal kits at many store locations, across its digital channels, and through a variety of distribution. The supermarket retailer operates more than 2,300 stores nationwide under some 12 banners, including Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Pavilions, and Star Market.



In teaming up with Plated, Albertsons adds a company with leading technology and data capabilities, a strategic step for the grocery retailer as it continues to focus on innovation, personalization, and customization.



"With Plated, we've found a partner who shares our commitment to delicious, affordable food; superior technology and innovation; and world class customer service," said Bob Miller, chairman and CEO of Albertsons Companies. "Plated knows its customers better than anyone, and together we will accelerate our ability to serve them."



In addition to benefitting from Albertsons' resources and national reach. Plated will also gain exposure to the estimated 35 million customers per week who do business with the grocery giant.




“This move highlights that as the grocery space continues to adapt to changing customer needs and expectations, grocery players will need to evolve their offerings into more of a service model than the existing product model,” commented Matt Sargent, senior VP of retail at Magid.



Sargent noted that with its acquisition of Plated, Albertsons is tapping in to the on-demand and dip-in culture, which has slowly taken over the grocery space. According to Magid Retail Pulse data, 41% of Millennials have purchased groceries online, with 23% shopping online exclusively.



"Albertsons recognized that this group will soon be the largest shopping group in the U.S., and this deal plays right into their desires for the convenience and ease of online grocery shopping,” Sargent said.