Meal kits have found growth during the pandemic, but new distribution could keep that trend alive into 2021.
Meal-kit provider HelloFresh is boosting its distribution power.
The company has revealed that it will lease new distribution centers in Newnan, Georgia, and Irving, Texas, providing increased capacity through expanded supply chain capabilities to support growing demand in key Southeastern and central Texas locations. This expansion will allow HelloFresh to accommodate rapidly increasing demand and better serve new and existing customers.
The 210,000-square-foot-facility in Georgia, HelloFresh’s first foray into the Southeast, will begin operating in the third quarter of 2020, scaling throughout the remainder of the year. This new distribution center will support shorter delivery distances throughout the region and provide job opportunities to more than 750 workers across operations, meal distribution and management roles.
Additionally, HelloFresh is rolling out a new state-of-the-art Irving, Texas, facility that will increase overall meal-kit production and distribution capacity by more than 30%. The nearly 375,000-square-foot distribution center — HelloFresh’s largest facility to date — will include office space, cold storage, packing and shipping areas, and could provide as many as 1,200 new jobs for the area as HelloFresh expands its presence to continue supporting rapidly growing demand and new customer growth in the South and Midwest regions of the United States.
Alongside its current facility in Grand Prairie, Texas, this new distribution center augments HelloFresh’s existing production and shipping capabilities in the Dallas-Fort Worth metro area. By co-locating the distribution center with its other facility in the same market, HelloFresh is leveraging operational efficiencies while tapping into existing supplier relationships and a strong workforce.
“These latest centers support our investment in long-term growth as we execute on our strategy to continue expanding our total addressable market through fresh geographies, new customer segments and various demographics,” said Uwe Voss, CEO of HelloFresh U.S. “To achieve this, we are expanding supply-chain capacity and actively iterating on our menu to satisfy new and existing customers, expanding recipe selection, adding more convenient offerings and increasing meal customization options to maintain our long-term growth momentum.”