Peapod meal kits have been very successful in test markets, thanks in part to partnerships with CPG brands, said Peg Merzbacher, VP of regional marketing for the online grocer.
“We've benefited significantly from the expertise of our CPG company partners whose recipe resources, consumer research and culinary talent helped us develop meals that really appeal to consumers from a taste, nutrition and ease of preparation perspective,” Merzbacher told SN in an email.
Peapod’s meal kits also cost from $5-$7.50 per serving, which is typically less than those offered by meal kit delivery services. Many make four to six servings, whereas the delivery companies’ kits tend to make two servings.
“Value is a huge component as well, and we knew we could offer Peapod’s Meal Kits at a very affordable price and without requiring a subscription,” said Merzbacher.
Peapod first launched meal kits using Barilla products in 2014. With the introduction of meals created in partnership with ConAgra and Campbell Soup Co. last month, Peapod now offers 15 options.
The retailer has also expanded its initial test from Chicago to New York, Indianapolis and Milwaukee.
“We've sold over 150,000 meals in our test markets with a repurchase rate double what we had projected,” said Merzbacher.
Merzbacher called meal kits rolled out late last year at Ahold USA brick-and-mortar banners Giant and Stop & Shop “a more upscale alternative” compared to the CPG-partnership kits. The in-store kits make two servings.
“We are working closely with our bricks and mortar partners to offer our consumers the option to pick up these meals in-store or online,” said Merzbacher.
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