“Changing the way people eat is an ambitious goal and one that can only be achieved with smart, innovative, and driven people”. (Laurent Guillemain, CEO of HelloFresh).
Between 2004 and 2010 Colorado-based Michael Joseph, an Economics Theory graduate of the University of Wisconsin-Madison, founded 2 organic food companies, “Door to Door Organics” in 2004, and “Mile High Organics” in 2010. Both were highly successful but in September 2014, having observed the growth of food kit retailing, he raised $1.7 million of seed funding and launched “Green Chef”, a B2C organics food recipe kit business based in Boulder Colorado.
The venture was an immediate success and by January 2015 it had a $4 million run rate. Growth continued and despite the ongoing success of “Mile High Organics” the business was closed and its shareholders were given equity in “Green Chef”. Growth continued and by 2017 the company was estimated to have a turnover of circa $100 million. However, it was not profitable as it was reinvesting to fund growth, so in mid-2017 Joseph announced that they were looking either to raise $50 million to fund expansion or find a purchaser. As he said, “If we find a buyer who is betting big into organics and wants to help grow this company, I would be a fool to say No”.
By March 2018, Green Chef had been bought by the giant German meal kit delivery company “HelloFresh”, which has operations in Australia, Canada, Europe, New Zealand, and the USA and a total of over 7 million customers. While there are few details of the purchase it was believed at the time that Green Chef would add approximately $15 million per quarter to the turnover of HelloFresh and would enable the company to broaden its customer base by offering vegan and gluten-free menus including Keto and Paleo diet meal plans. Speaking at the time of the acquisition, the North American President of HelloFresh, Tobias Hartman, said “Our customers are at the center of our thinking when it comes to offering great dinner experiences. Green Fresh…will be the perfect addition to HelloFresh’s meal plans”.
Being part of the HelloFresh organisation Green Chef shares the company’s mission, which is “to change the way people eat forever”. They aim to provide households with wholesome healthy meals that are good for the planet. Apart from receiving organic certification from the United States Department of Agriculture (USDA) for using products grown and manufactured safely and sustainably, it is committed to sustainability throughout its operation. Its electricity supply is 100 percent renewable, the packaging is recycled wherever possible, and 100 percent of the plastic used is offset as is its carbon footprint, which is 31 percent lower than that of meals produced from food bought from grocery stores. Additionally, they achieve a 23 percent reduction in food waste by only delivering the exact amounts of food required for each meal, while they collaborate with such voluntary organisations as the Felix Project in London to donate their own surplus food requirements to communities facing food insecurity. Also, in Manchester, they partner with restaurants, cafes, and schools to collect and recycle waste food through their Green Chef Food Recycling project.
In 2021 HelloFresh obtained B-Corp status with a score of 83.8. As the Director of Programmes and Engagement at B Lab UK, Kate Sandle, observed “Their commitment to doing business differently will be an inspiration to others and really help spread the idea that we can redefine success in business to be as much about people and planet as it is about profit”.
HelloFresh’s B-Corp certification also applies to Green Chef UK and both companies may be regarded as Harmonious Enterprises. They have a triple bottom line business model in which profit, planet, and people are in harmony and they address SDGs 2 (Zero Hunger), 3 (Good Health and Wellbeing), 8 (Decent Work and Economic Growth), 9 (Industry, Innovation, and Infrastructure), 12 (Responsible Consumption and Production), 13 (Climate Change), 15 (Life on Land) and 17 (Partnerships for the Goals).
References
Barker, M., (2021), B Corp status for HelloFresh. Fresh Produce Journal. 16th August.
Broughton, J., (2018), The Meal-kit Company HelloFresh Buys Green Chef. Inc. March 20,
Korosec, K. (2018), HelloFresh Acquires Organic Meal Kit Startup Green Chef. Fortune. March 20.
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