Hope springs eternal at Blue Apron, which has thrown many ideas at the wall to see what sticks. This may become a partnership that WW decides does more harm than good. Competing weight-loss specialist NutriSystem ( NTRI) offers menu items that you have to buy as part of the program, and WW has used that fact to distinguish itself in the past.
The meal plans targeted to the Freestyle program could help, but that also risks WW's reputation.
The troubles at Chef'd suggest WW x Blue Apron, as the partnership is called, won't be a panacea - that the same structural problems that lead consumers to buy meal kits in supermarkets over paying for a subscription will still be present. Chef'd couldn't find financing to continue operating and ended up being bought out, even though Campbell Soup and Smithfield Foods had both invested in it. WW, however, previously had a partnership with meal kit outlet Chef'd, which ended up shutting down its operations last July, around the same time its deal with WW ended. But Blue Apron and industry leader Hello Fresh have extraordinarily high turnover rates, which is why Blue Apron has had to invest so heavily in marketing to keep attracting new customers.ĭickerson told The Washington Post, "Historically, we've been going out and acquiring one customer at a time. This is a great way for us to get our brand in front of multiple customers at a time." The key will be whether they stay around and renew. Perhaps the company is hoping that customers will stay around and renew their subscriptions. That works out to about $10 per serving, which isn't too expensive - but after WW's cut, is there enough left over for profit? Hoping for a second helping The meal cost is reportedly the same as Blue Apron's existing two-person plan in which subscribers receive three recipes delivered weekly for $60. It seemingly makes the two businesses a good fit, and Blue Apron can use a little bit of the Oprah magic that the WW spokesperson and investor brings to the table.Īlthough the financial details weren't disclosed, Dickerson told The Wall Street Journal that Blue Apron will pay WW a small fee for every subscription it receives from a member.
Its customers are looking for specific meal components and having them available without needing to worry about whether the food will ruin their diet. That's why Blue Apron hopes a partnership with WW holds potential.
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