With its sales under siege from new competitors in organics and consumers opting for convenience over a hike to a store, Whole Foods (WFM) may be on the verge of entering the booming meal kit market.
"We have huge interest [in meal kits]," Whole Foods co-CEO Walter Robb told analysts on a call Wednesday evening. Two other executives moved quickly to chime in on the topic, adding that "there's a lot of people in the Willy Wonka laboratory working on this thing" and that it has been "tasting a lot of food." Concluded Robb, "We will say that we are committed to this category -- we think we have a good strategy for it, and it will be revealed."
Whole Foods declined to share more specifics on what its meal kit service would entail or when it would launch. The initiative is being called its "meal solution spectrum." Tien Ho, Whole Foods global vice president of culinary and hospitality, is leading the development of the recipes that would be included in the meal kits.
Meal kit services -- where consumers pay a monthly subscription fee to have meals delivered directly to their homes -- have burst onto the scene in recent years as consumers seek out ways to save time and as they show an interest in food culture. The market is dominated by Blue Apron and Plated, but according to Technomic it's now comprised of more than 170 players. Sales for meal kit companies topped $1 billion in 2015, said Technomic, and could grow into a multi-billion dollar market over the next five years.
