NEW TECH FOODS

HelloFresh is investing $70 million in a major overhaul of its meal kit offerings, aiming to harness AI to drive customer retention and boost in-home dining, according to a report by Bloomberg.

The Berlin-based meal kit company will use the funds to more than double its weekly recipe selection in the US, its largest market, expanding from 45 meals to over 100. The investment will also enhance the variety of premium ingredients such as grass-fed rib-eye steaks, triple the seafood options (at no extra cost) and increase portion sizes, responding directly to consumer demand for more variety and value amid rising food prices.

HelloFresh's group president, Assaf Ronen, told Bloomberg the move is designed to strengthen brand loyalty and attract customers who are dining out less due to inflation. “$70 million is a very large check,” Ronen said. “The more we invest in customers, the more they stay with us.”

Ronen confirmed that AI technology will be central to the refresh, helping customers navigate expanded menus by providing personalised meal suggestions based on their preferences and cooking habits. “What’s at the top of your list will be more relevant for you,” he said, likening the experience to Netflix-style recommendations.

The new offerings – set to launch in September – will include dishes like seared salmon with couscous and lemon yogurt, and eggplant caponata pitas with mozzarella. Subscription costs will vary depending on location and order size, ranging from about $60 for two meals a week for two people, up to $370 for six recipes serving six people. Per-serving costs are expected to remain around $10-$11.50, with upcharges for premium options like multi-course meals.

HelloFresh said the upgrades will also extend to its global logistics, with AI-driven robotics being installed in distribution centres to speed up order packing. While no workforce reductions are planned, Ronen acknowledged that automation will help manage future demand. “It’s about not needing to grow employees three times,” he said.

The company plans to expand the AI-enhanced offering to international markets at a later stage.