Marley Spoon brand gets $30m investment injection from Woolworths

Woolworths has confirmed a strategic partnership with Marley Spoon that will see the supermarket giant invest $30 million into the subscription-based meal kit provider as well as its Dinnerly brand.

Making the announcement to the ASX today, the initial five-year partnership sees Woolworths pick up a 9 per cent stake in Marley Spoon, as well as a direct role in growing the Australian business. The deal incorporates a $23 million senior secured convertible note, along with $7 million in Marley Spoon shares.

Along with more collaborative working across both Marley Spoon and Dinnerly brands, Woolworths said it will build operational synergies, while also learning promoting the online-based offer.

“This partnership gives Woolworths exposure to the high-growth, ready-to-cook meal kits segment and aligns with our ongoing goal of meeting our customers’ needs for healthy and convenient meal solutions,” Woolworths CEO, Brad Banducci, said.

“Marley Spoon has demonstrated it has a customer focused, innovative and entrepreneurial culture and we are excited to partner with them.”

Marley Spoon CEO, Fabian Siegel, said the partnership with Woolworths will provide significant benefits to both sides, while incentivising both parties to grow the Marley Spoon offering in Australia.  For example, Marley Spoon gains access to Woolworths’ customer base as well as sourcing and supply chain teams.

“We have chosen to partner with Woolworths because it’s clear the company understands what scale-up businesses need,” he commented. “Despite its size, Woolworths has a genuine partnership mentality, offering us support to grow the business while empowering us to run our own race.”

Marley Spoon, which was founded in 2015, provides a delivery-based subscription for food recipes and accompanying ingredients. Each recipe is designed by chefs to take 30 minutes, and is available in two- and four-person options, with new recipes created each week.

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