Updated: Mar 10, 2022
Blue Apron Holdings, Inc (NYSE: APRN) is a meal kit delivery company operating exclusively in the US. Launched in 2012, the company operates a DTC platform based on a subscription package of high-quality, pre-portioned ingredients. Further, they possess an E-commerce unit: Blue Apron Market, which sells kitchen equipment, and Blue Apron Wine.
The company’s product offering includes meat, fish, Beyond Meat™, Diabetes-Friendly recipes and health-conscious offerings. Their premium products are specialty proteins that drive up average order value. They are the No. 1 recognized brand in the meal kit space and hold a competitive advantage in the quality and sourcing of foods. They are also a leader in sustainable food creation. According to the University of Michigan, the service’s carbon footprint is 33% lower than grocery stores.
Blue Apron had a solid Q2 with key customer metrics reflecting the company’s growth strategy.
🔹️ Market Cap of 99M
🔹️ Revenue of 481M in FYO, 498M in FY1 and 588M in FY3
🔹️ Revenue growth of 8.5%
🔹️ Price to Sales of 0.2
🔹️ Debt to Capital at 35%
The company employs 2,343 people and is HQed in New York.
The biggest Institutional Investors are: Vanguard at 4.96%, AWM Investment at 4.26%, Penn Capital at 3.90% and Morgan Stanley at 2.95%.
🔹️9.9M Video Views of its YouTube video “How Does Blue Apron Work” within one week (27.08.2021)
🔹️ New sustainable packaging goals for its meal-kit boxes of 100% recyclable, reusable or compostable, by the end of 2025 (03.08.2021)
🔹️ $21.1 million in net proceeds from the June underwritten public equity offering (16.06.21)
🔹️ Introduced four new products in Q2’21 including Craft Burger (Prez from 03.08.2021)
🔹️ CEO Linda Kozlowski Purchases 10,700 shares at $7.04 a share (08.03.2021).
Blue Apron is a company I believe will have continued growth. I have used the service and can attest that they revolutionized the quality of pre-packaged meals. With only 64% of U.S. adults saying they feel comfortable eating out at a restaurant in August, the meal delivery industry is in prime position. Due to the company’s prestige in the sector, they are able to attract an in-house team of culinary experts that elevates their product. This past year, they have diversified their product offering and raised Average Revenue per Customer Growth by 25% YoY.
The company is partnered with Weight Watchers and the American Diabetes Association and focuses on healthy low-carb recipes. This is important as the target demo for meal kits is health-conscious younger adults who prioritize lean and natural foods. Their marketing strategy is based on targeting its highest-value customers with paid ads, which account for 30% of its business. The business can grow through partnerships such as the one with Jet.com where they sold meal kits to non-subscribers. People will continue cooking at home post-pandemic and CEO Linda Findley is driving net revenue (27% YoY in Q1’21), subscriber growth (15,000 YoY) and higher engagement with Orders per Customer rising for new and existing customers.
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