Nestlé has invested in and entered a “strategic partnership” with UK-based direct-to-consumer business Wonder Group.
A Nestlé spokesperson told Just Food: “This strategic partnership will allow us to bring an innovative and new-to-market solution to our customers as they look for ways to scale their operations. It can help them improve food quality, drive labour efficiencies, and open up additional revenue streams.”
Although the financial terms were not disclosed by either party, the deal is reportedly set to include a $100m investment from the Swiss giant, according to CNBC.
The broadcaster said the partnership will start with Nestlé making pizza and pasta tailored for Wonder’s kitchen equipment, along with selling the kitchen equipment to clients.
Melissa Henshaw, the senior vice president for Nestlé's Solutions Lab, told CNBC: “With our partnership with Wonder, there’s this opportunity to help operators across multiple out-of-home segments to be able to improve their food quality, have consistency, and actually open up some additional revenue streams that have been pretty challenged post-pandemic.”
The deal follows Nestlé’s recent strategic decision to combine its two foodservice businesses – Nestlé Professional and Solutions Lab – into one business to capitalise on the recovery in the out-of-home channel.
Wonder recently struck a deal to buy meal-kit company Blue Apron for around $103m. It has also developed kitchen equipment for cooking “restaurant-quality” food.
Blue Apron transferred its listing from the New York Stock Exchange in September to the Nasdaq bourse. The company, founded in 2012, released its second-quarter results in August for the period to 30 June, showing net losses widened to $61.9m, from a $23.3m loss in the corresponding three months a year earlier.
Last year, Nestlé spun off its Freshly meal-kit e-commerce delivery business into a joint venture with private-equity firm L Catterton.
Prior to that, the food and drinks major established its position in e-commerce with the acquisition of UK recipe-kit company SimplyCook.
