FreshDirect Looks to Build on Record Revenue in 2016

2017 Growth to Be Fueled by Diversification, Increased Focus on Mobile & Geographic Expansion

NEW YORK--()--FreshDirect, the Northeast’s preeminent online food retailer, today announced record revenue for 2016 with continued market leadership and profitability in all markets served.

“The funding we secured from top-tier investors will accelerate our expansion into new markets, double our manufacturing capacity and drive innovative new product lines in 2017 and beyond”

Other highlights for 2016 included:

  • Closed a $189 million investment round led by J.P. Morgan Asset Management
  • Launched FoodKick, an on-demand, mobile-first delivery business that caters to the spontaneous needs of urban dwellers. Having exceeded expectations in the launch markets of Brooklyn and Queens, FoodKick expanded service to Manhattan in Q4.
  • Added more than 500 new fresh products in the produce, meat, seafood and floral departments and more than 1,200 new product offerings in the grocery, frozen and dairy departments.

“2016 was a pivotal year for the company as we achieved strong results from our diversification strategy, notably the tremendous response to FoodKick. Our increased focus on mobile favorably aligned with customers’ preference to order on the go. In fact, those that utilize both our website and our FreshDirect and FoodKick apps spend more money with us,” said Jason Ackerman, FreshDirect’s co-founder and CEO. “By listening to our consumers and giving them more options to buy and enjoy fresh food at home, we are driving change in the way they shop, cook and entertain.”

Strategic Initiatives for Driving 2017 Growth

FreshDirect’s roadmap for growth in 2017 includes building on the success of its diversification strategy as well as other key initiatives. “The funding we secured from top-tier investors will accelerate our expansion into new markets, double our manufacturing capacity and drive innovative new product lines in 2017 and beyond,” said Ackerman. “In an increasingly competitive market space, we are driven by a passionate team and an even more passionate, growing customer base.”

2017 plans include:

  • Geographic expansion: FreshDirect will undertake a significant geographic expansion in 2017 with the launch of its grocery delivery service in a major metropolitan area. Service is expected to begin in Q2, with additional market launches expected in 2018.
  • FoodKick: In 2017 the company will focus on building FoodKick’s customer base with an eye on expanding service to additional cities in 2018.
  • Expanding Meal Kit Business: FreshDirect will expand its meal kit business with the roll out of new meal kit offerings designed to make it easy for consumers to put fresh, healthy and tasty meals on the table. FreshDirect requires no separate subscription for meal kits and they can be ordered as part of a FreshDirect grocery order or soon via FoodKick, giving consumers maximum flexibility. Meal kit menus will be updated monthly.
  • Manufacturing facility: FreshDirect is on track to complete its highly anticipated, new state-of-the-art Bronx facility in 2017, enabling FreshDirect to double capacity, launch new initiatives, accelerate its growth and improve margin. This world-class facility is designed to push the boundaries of efficiency and be one of the most sophisticated automated warehouses in the country. The first teams are expected to move to the new facility in Q3.

“FreshDirect’s success is built on a foundation of innovation and leading as opposed to reacting to the market. In 2017 we will continue to be ahead of the curve in offering our customers additional inspired choices and improving their food-buying experience while executing on our ambitious growth plans including extending our geographic footprint,” noted Ackerman.

About FreshDirect:

FreshDirect is a food tech company and the Northeast's leading online fresh food grocer, delivering directly to customers throughout five states, including the New York City and Philadelphia metropolitan areas. FreshDirect is committed to sourcing the freshest and best-tasting meat, fish, produce and specialty items through direct relationships with suppliers, growers and farmers. In 2016, FreshDirect expanded its portfolio with the launch of FoodKick, an on-demand business that caters to the needs of urban dwellers with a curated selection of food, alcohol and essentials–all delivered within an hour. Launched in 2002, FreshDirect is a privately held company headquartered in Long Island City, NY. For more information, visit www.freshdirect.com or www.foodkick.com.

Contacts

for FreshDirect
Kim Hughes or Jeff Fox, 718-928-1929
press@freshdirect.com

Release Summary

FreshDirect announces record revenue for 2016 and outlines key growth initiatives for 2017, including geographic expansion to a major metropolitan area.

FreshDirect