Freshly

Freshly, Inc.
Company typeDefunct
IndustryFood delivery
Founded2012; 12 years ago (2012)
DefunctJanuary 2023; 1 year ago (2023-01)
Headquarters
New York, New York
,
United States
Key people
Michael Wystrach
Carter Comstock
ParentNestlé

Freshly was a New York City-based convenience food delivery company that delivered throughout the contiguous United States.[1] It was acquired by Nestlé in October 2020 and was shut down in January 2023.

The company delivered one million meals per week.[2] Meals were able to be heated by microwave or oven without preparation.[3] Freshly also donated excess ingredients and meals to local food banks as a part of its partnership with Feeding America.

History

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Freshly was founded by Michael Wystrach and Carter Comstock in 2012. Wystrach sought to lose weight after a decline in his health following years working in investment banking. His family operated a restaurant, The Steak Out in Sonoita, Arizona, and he and a family friend, emergency room doctor Frank Comstock, helped prepare nutritious meals for delivery. After word of mouth spread, Frank's son, Carter Comstock, founded the company with Wystrach. Wystrach was influenced by 4-H program initiatives and adopted minimal food waste and sustainability into Freshly's menus.[2][4][5]

In July 2015, the company raised a $7 million Series A round.[6] In July 2016, the company raised $21 million in a funding round led by Insight Partners.[3][7]

In February 2017, the company announced plans to open a meal distribution center in Savage, Maryland and the creation of 500 jobs.[8]

In June 2017, the company raised $77 million in a funding round led by Nestlé.[9][10]

In 2020, Freshly expanded to business-to-business food delivery, including to workers in essential services.[11]

In October 2020, Freshly was acquired by Nestlé for US$950 million plus up to another US$550 million in earn out payments.[12][13]

In December 2020, the company launched a service to cater to active living styles and low-carb, high protein diets.[14]

In February 2021, Freshly announced a new 134,000 square-foot distribution center in Austell, Georgia.[15] In July 2022, the company this distribution center.[16]

In August 2022, the company announced a service focused on delivering meals to businesses.[17]

In December 2022, the company closed its distribution center in Savage, Maryland, laying off 454 people.[18]

In January 2023, Freshly ceased operations.[19]

In May 2023, former investors of Freshly sued Nestlé for failing to make earn-out payments.[20]

References

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  1. ^ Noto, Anthony (August 21, 2019). "Meal Kit Startup Freshly Has A Winning Recipe". American City Business Journals.
  2. ^ a b Juetten, Mary (October 15, 2020). "Dinner, Anyone? The Freshly Story". Forbes.
  3. ^ a b Ha, Anthony (July 12, 2016). "Healthy meal delivery startup Freshly raises $21M". TechCrunch.
  4. ^ Pittenger, Angela (February 23, 2014). "Diet food delivery company started by two UA grads goes national". Arizona Daily Star.
  5. ^ Belanger, Lydia (April 26, 2016). "While Competitors Close or Contract, Meal-Delivery Service Freshly Expands Reach to 28 States". Fox News. Entrepreneur.
  6. ^ Chernova, Yulia (July 15, 2015). "Freshly Packs Up $7M as Capital Keeps Flowing Into Meal Delivery". The Wall Street Journal.
  7. ^ Konrad, Alex (July 12, 2016). "Food Still Hot: Why Investors Bet $21 Million On Freshly's Three-Minute Meals". Forbes.
  8. ^ "Freshly to Open Meal Distribution Center in Howard County, Plans to Add 500 New Jobs" (Press release). Maryland. February 16, 2017.
  9. ^ Shields, Michael (June 20, 2017). "Nestle buys stake in U.S. ready meals group Freshly". Reuters.
  10. ^ Wohl, Jessica (May 7, 2019). "A new agency and team are part of Freshly's recipe for growth". AdAge.
  11. ^ Cording, Jess (May 1, 2020). "Freshly Launches New B2B Program To Help Companies Offer Employee Meals For Remote And Essential Workers". Forbes.
  12. ^ "Nestlé USA acquires Freshly, a pioneer in healthy prepared meals" (Press release). PR Newswire. October 30, 2020.
  13. ^ Ha, Anthony (October 30, 2020). "Nestlé acquires healthy meal startup Freshly for up to $1.5B". TechCrunch.
  14. ^ Moran, Catherine Douglas (December 16, 2020). "Freshly launches new lower-carb product line". Industry Dive.
  15. ^ Dixon, Kristal (February 12, 2021). "Freshly to open new distribution center, bring hundreds of jobs to Cobb". The Atlanta Journal-Constitution.
  16. ^ Schilling, Erin (July 21, 2022). "Meal delivery startup Freshly closes Atlanta distribution center after promising 250 jobs". American City Business Journals.
  17. ^ "Freshly Introduces FreshlyWell - A Dedicated Business Arm Delivering Mealtime Solutions to Employers, Organizations and Member Communities" (Press release). PR Newswire. August 30, 2022.
  18. ^ Iannetta, Jessica (December 8, 2022). "New York meal delivery startup to close Howard County warehouse, lay off 454 workers". American City Business Journals.
  19. ^ Danley, Sam (January 6, 2023). "Freshly shutting down meal deliveries". Food Business News.
  20. ^ Azevedo, Mary Ann (May 17, 2023). "Freshly shareholders, including Insight Partners, sue Nestlé for 'failing to make earnout payments'". TechCrunch.
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