11 May 2017

Kroger is launching a Blue Apron killer — and it has two huge advantages

News

Kroger is diving into the fast-growing meal-kit business.

The supermarket chain is offering meal kits — or packages that contain recipes and accompanying ingredients — at a handful of stores and launching them nationwide over the next year, Kroger CEO Rodney McMullen said Wednesday in a letter to shareholders.

The $1.5 billion meal-kit market is currently dominated by Blue Apron, a subscription service that now delivers more than 8 million meals a month — up from about 1 million meals per month two years ago. Blue Apron costs $20 for a meal that services two people.

But Kroger has two major advantages compared to Blue Apron. 

First of all, Kroger's boxes are cheaper, costing about $14 for a meal that feeds two people.

Kroger also goes a step further than Blue Apron by doing most of the food prep for customers. No chopping, slicing, dicing, grating, or other work is necessary — all the ingredients are ready to be cooked.

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