FreshDirect Sets 2017 Growth Goals
Online retailer FreshDirect has revealed record revenue for 2016, with continued market leadership and profitability in all markets served, and laid out it goals in 2017, including geographic expansion, growing its meal kit business and completing its new Bronx, N.Y., state-of-the-art facility.
Among the egrocer’s other 2016 highlights, it closed a $189 million investment round led by J.P. Morgan Asset Management; rolled out FoodKick, an on-demand, mobile-first delivery business targeting urbanites, in the New York City boroughs of Brooklyn, Queens and Manhattan; and added 500-plus fresh produce, meat, seafood and floral products and more than 1,200 grocery, frozen and dairy items.
“2016 was a pivotal year for the company, as we achieved strong results from our diversification strategy, notably the tremendous response to FoodKick,” noted Jason Ackerman, co-founder and CEO of Long Island City, N.Y.-based FreshDirect. “Our increased focus on mobile favorably aligned with customers’ preference to order on the go. In fact, those that utilize both our website and our FreshDirect and FoodKick apps spend more money with us. By listening to our consumers and giving them more options to buy and enjoy fresh food at home, we are driving change in the way they shop, cook and entertain.”
For 2017, FreshDirect aims to build on the success of its diversification strategy as well as other key initiatives. “The funding we secured from top-tier investors will accelerate our expansion into new markets, double our manufacturing capacity and drive innovative new product lines in 2017 and beyond,” added Ackerman. “In an increasingly competitive market space, we are driven by a passionate team and an even more passionate, growing customer base.”
This year, the company plans to introduce its grocery delivery service in an as-yet-undisclosed major metropolitan area in Q2, with further market launches anticipated in 2018; build FoodKick’s customer base ahead of expanding service to more cities next year; roll out new, convenient meal kit offerings, with the option to order them via FoodKick and meal kit menus updated monthly; and open its new Bronx warehouse, which will enable it double capacity, launch new initiatives, accelerate growth and improve margin. The first teams are expected to move to the facility in Q3.
“FreshDirect’s success is built on a foundation of innovation and leading as opposed to reacting to the market,” said Ackerman. “In 2017, we will continue to be ahead of the curve in offering our customers additional inspired choices and improving their food-buying experience while executing on our ambitious growth plans, including extending our geographic footprint.”
FreshDirect delivers directly to customers throughout five states, including the New York City and Philadelphia metropolitan areas.