Blue Apron hopes new CEO can lead turnaround
The volatility in the meal kit industry takes another turn, with Blue Apron replacing its CEO just six months after going public.
The company announced that its Board of Directors has appointed its CFO Brad Dickerson as President and Chief Executive Officer. He will assume day-to-day leadership of the company and will also join Blue Apron’s Board of Directors. The company has begun a search for a new CFO.
Matt Salzberg, Blue Apron’s co-founder, has stepped down from his role as President and Chief Executive Officer and has been named Executive Chairman. Salzberg will also continue to serve as Chairman of the Board of Directors.
“It has been a tremendous honor to serve as the CEO of Blue Apron since founding the company and I am incredibly proud of everything our team has accomplished together in just five years,” said Salzberg. “We’ve made meaningful progress toward our top company priorities. Since we completed the transition of volume to our fulfillment center in Linden, New Jersey less than two months ago, our most recent On-Time-In-Full rates have improved to be in line with our other fulfillment centers. Additionally, as expected, our margins since the end of the third quarter have significantly improved.”
Blue Apron has had a rough few months since going public in June. The company has been losing customers, market share and employees, after it laid off 300 staffers in October.
“Growth this quarter was largely impacted by the planned decrease in marketing spend of more than 30% year-over-year, that resulted in fewer new customers as we focused on the operational challenges that arose during the transition of volumes to our Linden (N.J. distribution) facility,” CFO Brad Dickerson said during a Nov. 2 conference call.
Before joining Blue Apron, Dickerson, 52, spent eleven years at Under Armour in senior leadership roles including as Chief Financial Officer and Chief Operating Officer. As one of Under Armour’s most tenured executives, Dickerson helped advance the company’s growth strategy, leading strong teams around him that took Under Armour from $200 million to $4 billion in net revenue. As Under Armour’s Chief Operating Officer, he was also instrumental in driving operational efficiencies across the company’s global supply chain that included multiple distribution channels.
“I know that I speak for everyone at Blue Apron in thanking Matt for his leadership and tireless dedication to the company,” said Dickerson. “I am incredibly excited to assume this new role and for the future of the company. We have an exceptionally talented team at Blue Apron that is focused on taking decisive actions to transform the business, continuing to innovate our product in new and diverse ways, and unlocking future growth opportunities. We remain confident in our previously stated financial guidance for the second half of 2017, and I believe we are taking the right steps to move the business forward.”