Kroger's (KR) Home Chef Joins Forces with Impossible Foods
The Kroger Co.’s KR subsidiary Home Chef recently has collaborated with Impossible Foods. Adding more versatility to Home Chef’s offering, this alliance allows meat lovers to swap traditional animal-based proteins for the plant-based Impossible Burger. With this collaboration, Home Chef becomes the first meal kit-delivery company that offers Impossible Burger. This is in resonance with Home Chef’s Customize It feature, allowing consumers with options to swap, upgrade and double up on proteins, as well as select the number of servings of each recipe.
Notably, the award-winning Impossible Burger will come in a convenient 12-ounce package of ground meat. The Impossible Foods' flagship product, Impossible Burger, tastes and sizzles like ground beef, and can be substituted in recipes for the latter. Being rich in iron and free of antibiotics or animal hormones, every 4-ounce serving of Impossible Burger includes 19 grams of protein, 0 mg of cholesterol, 14 grams total fat and 8 grams saturated fat. This substitute can be used in ground meat recipes like stews, chili, sauces, minces, meatballs, meat pies and more.
The selection of recipes offering the Impossible Burger customization encompasses Basil Pesto Ground Beef Lettuce Wraps with red peppers, Cheese Tortellini with Spicy Pork Ragout & Parmesan 15-minute meal, French Onion-Crusted Beef Meatloaf with Peas & Peppers Oven-Ready meal, Hawaiian Turkey Burger and Sriracha-roasted sweet potatoes, among others. Delivering around 3.5 million meals per month, Home Chef offers consumers more ways to enjoy the recipes with plant-based foods via the latest alliance.
Kroger, which operates in the thin-margin grocery industry, has been making every effort to strengthen its position not only with respect to products, but also in terms of the way consumers prefer shopping for grocery. Its acquisition of Home Chef, the U.S. meal-kit company, and partnership with British robotics company Ocado in 2018 are noteworthy. The company is aggressively working toward more convenient grocery delivery options. In this regard, the company has started utilizing Nuro’s fully autonomous, driverless vehicles for grocery-delivery services.
The company has been making prudent investments to bolster omni-channel operations, improve supply chain and increase manpower to ensure swift customer service during such challenging times. Realizing the need of the hour, the company offered a no-contact delivery option, low-contact pickup service and ship-to-home orders. It also waived pickup fees with no minimum purchase requirements and continued to expand contactless payment solutions like Kroger Pay.
Also, the company implemented a pickup-only location in Cincinnati. We note that digital sales surged 92% in first-quarter fiscal 2020, while pickup or delivery reached 97% of Kroger households (2,000 pickup locations and 2,400 delivery locations).
Impressively, the Cincinnati, OH-based company’s shares have increased 18.1% year to date, outperforming its industry’s 10.9% rally. The grocery retailer currently displays a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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