Marley Spoon is set to sell its U.S. fulfillment and production facilities in a $24 million transaction, aiming to streamline operations and enhance profitability following a downturn in revenue and order volume within its U.S. operations last year.
CEO and founder Fabian Siegel highlighted the strategic shift towards an asset-light approach in the company’s earnings release, noting the advantage of leveraging FreshRealm’s extensive manufacturing capabilities. “Evolving to an asset-light model allows us to focus our investments while benefiting from the existing scale of FreshRealm’s manufacturing infrastructure,” Siegel remarked.
Upon completion of the deal, FreshRealm will assume control of Marley Spoon’s U.S.-based fulfillment centers, inventory, manufacturing assets, and a significant number of operational employees. FreshRealm is set to manage all Marley Spoon customer orders in the United States, with Marley Spoon retaining responsibility for customer service and other front-end operations.
Marley Spoon views this partnership as a strategic move to adopt a scalable, capital-efficient model conducive to growth and consolidation efforts. The arrangement is expected to bolster the company’s focus on creative and customer-facing functions, facilitating future acquisitions and the potential introduction of new direct-to-consumer brands.
This transaction mirrors a similar strategy by Blue Apron, another meal kit company, which sold its fulfillment centers to FreshRealm the previous year to aid in its pursuit of profitability. That agreement involved the transfer of facilities in Linden, New Jersey, and Richmond, California, along with staff and equipment, with FreshRealm taking on exclusive production and fulfillment responsibilities for Blue Apron’s meal kits.
FreshRealm maintains partnerships with major retailers such as Amazon Fresh, Walmart, Kroger, and Publix, producing 100 million fresh meals annually, as stated on its website.
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