Blue Apron Surges After Partnering With High-Flying Beyond Meat - Yahoo Finance

(Bloomberg) -- Blue Apron Holdings Inc. jumped as much as 17% in early trading Tuesday after announcing a tie-up with a hot brand: Beyond Meat Inc.The struggling meal-kit company will begin introducing products from the trendy alternative-meat startup on its menus in August, New York-based Blue Apron said in a statement.The tie-up may breathe some fresh life into Blue Apron, whose shares have plummeted more than 90% since its 2017 initial public offering turned out to be one of the worst-performing in recent history. Meanwhile, Beyond Meat shares have gained 566% since their May debut as faux meat has taken off across restaurant and fast-food chains.Blue Apron’s struggles stem from the meal-kit industry’s challenges attracting and retaining customers. Although subscriptions were originally marketed to people who wanted to cook but didn’t know what or how, it was soon beset with complaints: The meals were too expensive, you had to plan ahead, and people felt guilty throwing away all the packaging required to keep ingredients fresh. The nascent meal-kit industry found luring and retaining customers required margin-eating discounts and often didn’t work.In a bid to reinvigorate growth, Blue Apron got inside brick and mortar retail, but Costco Wholesale Corp. ultimately dropped the meal-kit boxes to make space for seasonal products.To contact the reporters on this story: Anne Riley Moffat in New York at ariley17@bloomberg.net;Catherine Larkin in Chicago at clarkin4@bloomberg.netTo contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Anne Riley MoffatFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

(Bloomberg) -- Blue Apron Holdings Inc. jumped as much as 17% in early trading Tuesday after announcing a tie-up with a hot brand: Beyond Meat Inc.

The struggling meal-kit company will begin introducing products from the trendy alternative-meat startup on its menus in August, New York-based Blue Apron said in a statement.

The tie-up may breathe some fresh life into Blue Apron, whose shares have plummeted more than 90% since its 2017 initial public offering turned out to be one of the worst-performing in recent history. Meanwhile, Beyond Meat shares have gained 566% since their May debut as faux meat has taken off across restaurant and fast-food chains.

Blue Apron’s struggles stem from the meal-kit industry’s challenges attracting and retaining customers. Although subscriptions were originally marketed to people who wanted to cook but didn’t know what or how, it was soon beset with complaints: The meals were too expensive, you had to plan ahead, and people felt guilty throwing away all the packaging required to keep ingredients fresh. The nascent meal-kit industry found luring and retaining customers required margin-eating discounts and often didn’t work.

In a bid to reinvigorate growth, Blue Apron got inside brick and mortar retail, but Costco Wholesale Corp. ultimately dropped the meal-kit boxes to make space for seasonal products.

To contact the reporters on this story: Anne Riley Moffat in New York at ariley17@bloomberg.net;Catherine Larkin in Chicago at clarkin4@bloomberg.net

To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Anne Riley Moffat

For more articles like this, please visit us at bloomberg.com

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