US Markets
Tuesday, November 7th, 2023 2:59 pm EDT
Key Points
- Nestle Invests in Wonder Group: Nestle has made a $100 million investment in food-delivery startup Wonder Group. This investment is part of a strategic partnership, and while exact financial details are not disclosed, the collaboration aims to facilitate the sale of high-tech kitchen equipment and prepared ingredients to various businesses, including hotels, hospitals, and sports arenas.
- Wonder’s Ambitions: Wonder Group, founded by former Walmart e-commerce chief Marc Lore, aims to simplify and accelerate the preparation of restaurant-quality food. The company recently acquired meal-kit provider Blue Apron and has developed innovative kitchen equipment to achieve its goal of offering high-quality meals for busy families.
- Partnership’s Focus: Nestle and Wonder’s partnership will commence with Nestle producing pizza and pasta customized for Wonder’s kitchen equipment. Nestle, a food and beverage giant, serves clients in the food-service business, including college campuses and cruise lines, which could potentially benefit from the innovative kitchen equipment offered by Wonder. The collaboration seeks to address the demand for convenient meals and bold flavors in various out-of-home segments by improving food quality and consistency, opening new revenue opportunities, and addressing post-pandemic challenges. Wonder is also looking to expand its presence with multiple brick-and-mortar kitchen locations, following its transition away from mobile kitchen trucks, and aims to become a comprehensive “super app for mealtime” with a range of options catering to customer preferences.
Wonder Group, a food-delivery startup, secured a significant financial boost through a $100 million investment from Nestle in conjunction with a strategic partnership. The company is directed towards offering high-tech kitchen equipment and prepared ingredients, targeting various commercial sectors like hotels, hospitals, and sports arenas.
Founded by Marc Lore, the former Walmart e-commerce chief, Wonder recently acquired Blue Apron for $103 million and is striving to simplify the cooking process of restaurant-quality food through innovative kitchen equipment. The company seeks to provide high-quality, convenient meals to busy households.
Nestle, a major food and beverage company, will partner with Wonder in creating pizza and pasta tailored for Wonder’s kitchen equipment, extending to selling this equipment to various clients, including Nestle’s customer base like college campuses and cruise lines.
Wonder initiated with a unique business model, including a fleet of mobile kitchens parked outside customers’ homes, which it later discontinued to focus on brick-and-mortar kitchens. This transition aimed to enhance efficiency and quicken the path to profitability. The startup intends to expand its presence with up to 10 locations in the tri-state area by year-end, growing to at least 20 additional sites next year.
The company is targeting business-to-business expansion through its offering, WonderWorks, aiming to cater to convention centers, theaters, and airports. It endeavors to become a comprehensive mealtime “super app,” offering diverse tiered options catering to various customer preferences.
Wonder differentiates itself by utilizing innovative kitchen setups that can operate in compact spaces without traditional equipment like gas, stoves, or hoods, offering a broad range of meals without compromising taste or quality.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/07/wonder-group-food-delivery-startup-gets-100-million-nestle-investment.html
