Nestlé is acquiring SimplyCook, a UK direct-to-consumer (D2C) recipe kit business in the UK. Food Manufacture interviewed Food Strategy Associates co-founder and Managing Partner, Robert Lawson, in this week’s edition. Food Strategy Associates have experience in the direct-to-consumer space, providing operational and commercial due diligence for Oddbox, a wonky vegetable box subscription business.
Here are some excerpts from Robert’s interview. See the full article from Food Manufacture here.
In his interview, Robert highlighted that this is one of a number of recent moves by Nestlé to build on their presence in D2C, following the acquisition of Mindful Chef, Tails and arguably Lily’s Kitchen.
“It reflects a strategy of building capabilities in this area… ultimately to extend both geographically and across a wider range of the Nestlé portfolio”Robert Lawson, Food Manufacture
D2C channels have experienced accelerated growth during COVID and whilst building presence in this channel will not radically transform a company as huge as Nestlé today, it offers learning opportunities for the future. Today, however, competitors in the herbs and spices market should be keeping a close eye on the deal.
“For traditional spice players like Fuchs and McCormick, this may be a wake up call that a gorilla, Nestlé, might be entering their markets through the back door”Robert Lawson, Food Manufacture