Woolworths has sold its stake in meal-kit provider Marley Spoon for $54 million just two years into a five-year growth alliance between the two businesses.
The supermarket group sold its stake for $1.91 per security, and said it intends to remain committed to the alliance: which covers marketing support and customer origination programs, as well as cooperation on logistics and supply chain operations.
According to a report in The Australian, Woolworths believes Marley Spoon no longer fits within its investment portfolio.
“Marley Spoon experienced strong growth over the term of W23‘s investment and has matured into an established listed company, and no longer fits squarely within the investment criteria of W23,” a Woolworths spokesperson said.
“Woolworths Group and Marley Spoon remain committed to the continuing five-year strategic growth alliance that covers marketing support and customer origination programs as well as co-operation on logistics and supply chain operations.”
Inside Retail has reached out to Woolworths for comment.
Earlier this year, Marley Spoon chief executive Rolf Weber said the business’ growth had been boosted by the impact of the pandemic – despite supply chain pressures from drought, bushfires, floods, food shortages, and the global health crisis.
Weber attributed the business’ impressive retention rates in part to the continued innovation of his team, including the launch of ready-to-heat meals earlier in 2020.
“[Our] numbers are very strong and customer retention is extremely high, even as the impact of the pandemic has begun to decrease across Australia,” says Weber. “Ready-to-heat meals had been in product development prior to the pandemic, however the launch was expedited by lockdowns and the demand from the influx of news customers. With many Australians returning to the office in recent months, the number of ready-to-heat meals sold continues to impress and opens future opportunities and streams to reach new customers.”