Skip to Content
Stock Strategist Industry Reports

Are Meal-Kit Delivery Companies a Threat or an Opportunity?

We see new growth avenues for CPG companies and online retailers.

Mentioned: , , , , , , , , ,

If you’ve opened your browser or mailbox in the past year, chances are you’ve seen an advertisement for a meal-kit service like Blue Apron, HelloFresh, Home Chef, and others. These services offer an attractive alternative that overlaps with consumers’ evolving views about fresh, healthy, and convenient dining options. When these services first hit the market, we viewed them as largely no-moat companies that represented only minimal threat to our consumer coverage. However, after digging deeper and speaking with several executives from leading meal-kit delivery services, we believe these platforms and other subscription-based companies may be thawing consumer perceptions of online grocery and restaurant delivery services while offering new growth avenues for consumer packaged goods, or CPG, companies and online retailers.

Instead of viewing these services only as immediate threats to our grocery store, CPG, online retail, and restaurant coverage, as many investors have assumed, we believe they’ve played a part in changing consumer behavior that investors can’t ignore. We expect these services to play a big part in accelerating online grocery and CPG direct-to-consumer sales in the years to come.

R.J. Hottovy does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.