Blue Apron

Blue Apron Holdings, Inc.
Type of businessSubsidiary
Traded asNYSE: APRN (2017–2023)
FoundedAugust 2012; 12 years ago (2012-08)
HeadquartersNew York City, New York, U.S.
Area servedUnited States
Founder(s)
  • Matt Wadiak
  • Matt Salzberg
  • Ilia Papas
Key people
IndustryMeal kit
RevenueDecrease US$458 million (2022)[2]
Employees165 (2023)[3]
ParentWonder Group (2023–present)
SubsidiariesBlue Apron Market
BN Ranch
URLwww.blueapron.com

Blue Apron Holdings, Inc. is an American ingredient-and-recipe meal kit company headquartered in New York City, operating its services exclusively in the United States.[4] It offers weekly boxes containing ingredients, which also includes suggested recipes that must be cooked by hand by the customer using the pre-ordered ingredients.

As of September 2016, the company had shipped 8 million meal servings.[5] In June 2017, the company went public through an initial public offering.[6] Since November 2023, Blue Apron operates as a subsidiary of food delivery startup Wonder Group.[3]

History

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Blue Apron meal kit shipping box
Blue Apron meal kit ingredients

Matt Salzberg, Ilia Papas and Matt Wadiak first began sending customers boxes containing the ingredients to cook recipes in August 2012, packing and shipping the first 30 orders themselves from a commercial kitchen in Long Island City.[4] In May 2014, the company announced that it would be launching a fulfillment center in Richmond, California.[7] In November 2014, Blue Apron launched Blue Apron Market, a store featuring kitchen tools and cookware.[8] In December 2014, the company opened another fulfillment center in Jersey City, New Jersey.[9]

After the opening of its third fulfillment center in Arlington, Texas in June 2015, the company began shipping to the contiguous United States.[10]

In September 2015, Blue Apron launched Blue Apron Wine, a direct-to-consumer wine delivery service that sends customers six 500 ml bottles per month.[11] The wines, made specifically for Blue Apron, are purchased directly from vineyards and sent directly to customers.[12]

In October 2016, BuzzFeed reported a history of safety and health violations at the company's Richmond, California distribution center. The company attributed the problems to operational issues while scaling up during its early days.[13]

In February 2017, the company announced that it would be opening a fulfillment center in Linden, New Jersey.[14]

On June 29, 2017, Blue Apron had its initial public offering of 30 million shares of class A common stock (ticker APRN) priced at $10 per share; it is the first U.S. meal-kit company to go public.[6]

Since going public, Wall Street has cut Blue Apron's stock price in half. By October 2017, prior to its next earnings report, the company had announced a company-wide realignment, 6% of employees laid off at both the corporate offices and fulfillment centers, estimated to be a couple of hundred jobs.[15][16]

On November 30, 2017, Blue Apron announced that Brad Dickerson would be replacing Salzberg as CEO; Salzberg will remain chairman.[17]

As of March 26, 2018, Blue Apron has lost 81.4% of its market value since its initial public offering.[18]

In May 2018, Blue Apron began selling 4 servings meal kits at 17 Costco locations in California, marking the company's entrance into physical retail[19] and Tim Bensley, formerly of Acosta Sales & Marketing, entered as CFO.[20]

On August 2, 2018, Blue Apron, announced the total number of customers who paid for a meal delivery had a decrease of 24 percent during the second quarter of 2018 compared to the previous quarter, and the company also indicated total orders had slipped by 23 percent.[21]

In April 2019, Brad Dickerson was succeeded by Linda Findley Kozlowski as the new CEO of the company. However, Dickerson remained at the company as an adviser.[22]

In November 2020, Alan Blake was succeeded by Charlean Gmunder as the new COO. Blake left the company in June to lead operations at Kettle Cuisine.[23]

In September 2023, food delivery startup Wonder Group agreed to acquire the company for $103 million,[24] which was finalized couple of months later.[3]

Environmental impact

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The company and other meal kit companies have been criticized for creating excess packaging waste from the individually packaged ingredients.[25] As of 2017, Blue Apron partners with farms that limit agricultural chemicals and promote soil health through crop rotation to grow specialty crops for the company.[26]

References

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  1. ^ Garber, Jonathan (April 2, 2019). "Blue Apron is soaring after its CEO steps down (APRN)". Business Insider. Retrieved April 2, 2019.
  2. ^ "US SEC: Blue Apron Form 10-K". U.S. Securities and Exchange Commission. March 16, 2023.
  3. ^ a b c Beltran, Luisa (November 13, 2023). "Investor Marc Lore's Wonder Group closes its deal for meal kit service Blue Apron for $103 million". Fortune.
  4. ^ a b Konrad, Alex (September 5, 2016). "Blue Apron's Got Big Plans For Dinner -- But So Do Its Hungry Rivals". Forbes. Archived from the original on November 14, 2023.
  5. ^ Sherwood, Alison (September 5, 2018). "Meal kits put to the test". The Times Herald. Archived from the original on December 10, 2023. Retrieved July 5, 2017.
  6. ^ a b Hirsch, Lauren; Moon, Angela (June 28, 2017). "Meal-kit maker Blue Apron goes public, demand underwhelms as Amazon looms". Reuters. Retrieved June 29, 2017.
  7. ^ "Blue Apron Brings 400 Jobs to Bay Area". PRNewswire. May 28, 2014. Retrieved May 10, 2017.
  8. ^ Crook, Jordan (November 12, 2014). "Blue Apron Blows Past 1 Million Meals Sold Each Month, Looks To eCommerce". techcrunch. Retrieved July 5, 2017.
  9. ^ "Blue Apron Shipping Over One Million Meals per Month". PRNewswire. November 12, 2014.
  10. ^ "Blue Apron to Open Arlington Fulfillment Center". PRNewswire. May 18, 2015. Archived from the original on February 11, 2017. Retrieved May 10, 2017.
  11. ^ Goode, Lauren (September 26, 2015). "Can booze lure me back to a meal-delivery service?". The Verge. Retrieved December 3, 2017.
  12. ^ Athavaley, Anjali (September 21, 2015). "Meal delivery start-up Blue Apron to sell wine, sees growth opportunity". Reuters. Retrieved May 10, 2017.
  13. ^ O'Donovan, Caroline (October 2, 2016). "The Not-So-Wholesome Reality Behind The Making of Your Meal Kit". BuzzFeed. Retrieved August 10, 2017.
  14. ^ Iati, Maria (February 8, 2017). "Blue Apron to bring 2K jobs to Linden facility". NJ.com. Retrieved May 10, 2017.
  15. ^ "Form 8K". SEC. October 18, 2017.
  16. ^ Lynley, Matthew (October 18, 2017). "Blue Apron is laying off hundreds of employees". Tech Crunch.
  17. ^ Roof, Katie (November 30, 2017). "Blue Apron loses its CEO". TechCrunch. Retrieved December 1, 2017.
  18. ^ Selway, Josh (March 26, 2018). "Blue Apron Stock Hits New Low as Square Gets Huge Price-Target Hike". Schaeffer's Investment Research.
  19. ^ Peterson, Hayley (March 5, 2018). "Costco now sells Blue Apron — and the meal kits are 30% off". Business Insider. Retrieved March 5, 2018.
  20. ^ "Blue Apron Appoints Tim Bensley as Chief Financial Officer". Blue Apron. May 17, 2018./
  21. ^ "Blue Apron shares sink as customers ditch its meal-kits". Reuters. August 2, 2018. Retrieved August 3, 2018.
  22. ^ Wiener-Bronner, Danielle (April 2, 2019). "Blue Apron CEO and CTO are leaving the company". CNN. Retrieved May 16, 2019.
  23. ^ Bradbury, Rosie (December 1, 2020). "Blue Apron taps United Airlines catering exec as COO". Grocery Dive. Retrieved December 17, 2020.
  24. ^ Valinsky, Jordan (September 29, 2023). "Blue Apron stock surges 130% on news it is being sold". CNN Business.
  25. ^ Cushing, Ellen (November 27, 2015). "These Are The Trashy Consequences of Blue Apron Delivery". Buzzfeed. Retrieved May 31, 2017.
  26. ^ Preston, Marguerite (January 12, 2017). "How Sustainable Is Your Mail-Order Meal Kit?". Rodale's. Archived from the original on August 11, 2017. Retrieved May 10, 2017.
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