Del Monte reimagines CPG business model
Del Monte is investing $4 million in a meal kit company as the CPG giant looks accelerate its e-commerce aspirations.
The company, which delivers completely plant-based (vegan) meal kits to subscribers, was founded in 2014.
Purple Carrot had previously raised $6 million in funding, according to Crunchbase. The company says that this new investment will allow it to improve its supply chain, get access to more retail opportunities and explore expansion into other categories.
“Securing this strategic investment from Fresh Del Monte is a huge validation of our business model, and an important step forward for our company,” said Purple Carrot founder and CEO Andy Levitt in the announcement. “Helping people eat more plant-based foods represents our differentiated, purpose-driven commitment to making the planet and the people who live on it healthier.”
The announcement comes as CPG companies such as Del Monte are increasingly trying to reimagine their business in the e-commerce age.
The deal gives Purple Carrot, which only sells vegan meals, access to a national distribution network and supply chain as it tries to compete in the increasingly crowded meal-kit industry.
The growth in plant-based eating is expected to double from 2015 to an estimated $25 billion in 2020. Moreover, the meal kit market is projected to grow from $1.6 billion in 2016 to $35 billion in 2025.
In March 2017, Purple Carrot announced a partnership with Tom Brady and his team at TB12 to launch TB12 Performance Meals to help active individuals cook many of the same delicious meals Brady eats each week.