Nestle Invests in Subscription Meal Service

The U.S. arm of Nestle has acquired a minority stake in Freshly Inc., a subscription meal service startup in New York. Nestle announced Tuesday it is the lead investor in Freshly’s $77 million Series C funding round. As part of the deal, the food giant – which is in the process of transferring its corporate headquarters from Glendale to Arlington, Va. – also will see its food division President Jeff Hamilton join Freshly’s board of directors. “While most food choices are still made in supermarkets, it’s clear that consumers are responding to a growing universe of direct-to-consumer options,” Nestle USA Chief Executive Paul Grimwood said in a statement. “Acquiring a position in Freshly … brings reciprocal benefits for both companies.” The service delivers prepared meals that customers heat at home. Freshly to date has raised $107 million in four rounds of financing, according to business database Crunchbase Inc. The startup will use the funds from Nestle to construct a kitchen on the East Coast and build out its distribution center, according to a company statement.