Expanding beyond DTC, the meal delivery service is headed to the freezer aisle.
What’s happening: Daily Harvest is teaming with Kroger to enter 1K grocery stores nationwide.
Founded in 2016, the subscription-based company started as a direct-to-consumer purveyor of plant-based meals. Now, founder and CEO Rachel Drori hopes to broaden appeal:
“Launching as a direct-to-consumer brand helped us build recognition as a brand with a steadfast mission; and expanding beyond our online community will allow us to make that much larger of an impact.”
Ups and downs. According to Drori, retail was on the roadmap back in 2020, but the pandemic disrupted its omnichannel expansion.
On the bright side, the brand benefited as demand for home delivery soared during lockdowns. Then, in 2021, Daily Harvest was valued north of $1B in a $77M funding round.
But, it endured a series of setbacks over the past year, including two rounds of layoffs. Worse, an ingredient in a newly launched product hospitalized 100+ customers, forcing a recall — the impact of which is still being felt.
Retail reset. Hoping to meet consumers where they shop, Daily Harvest’s grocery debut is also a chance to meet consumers who don’t know about the recall.
Punchline: Still, whether it’s new or returning shoppers, with more people prioritizing nutritious options at a time when grocery stores are stocking up on wellness, the Daily Harvest x Kroger partnership is a step forward — one numerous other DTC health brands are taking too.